'Excellent' credit rating but just been refused a loan
Discussion
According to my Experian credit report I have an 'Excellent' credit rating with a score of 999.
I tried to apply for a loan yesterday with Alliance and Leicester, although was told it was an Abbey loan and was refused.
The amount wasn't huge, £11k, I've never had any problems obtaining credit in the past, and I’ve always been up to date on payments.
The only thing I can think of that may have affected the decision was recently paying off a loan early.
Any other reason I may have been refused? Is the Experian credit report accurate? (All my details are up to date and accurate)
Is Abbey just a bit picky on who they will loan to, or is it the result of the banking problems?
My next problem is finding a bank to loan me the money I require at a reasonable rate, any ideas?
I tried to apply for a loan yesterday with Alliance and Leicester, although was told it was an Abbey loan and was refused.
The amount wasn't huge, £11k, I've never had any problems obtaining credit in the past, and I’ve always been up to date on payments.
The only thing I can think of that may have affected the decision was recently paying off a loan early.
Any other reason I may have been refused? Is the Experian credit report accurate? (All my details are up to date and accurate)
Is Abbey just a bit picky on who they will loan to, or is it the result of the banking problems?
My next problem is finding a bank to loan me the money I require at a reasonable rate, any ideas?
Edited by kieranbennett on Friday 5th February 10:07
I wouldnt worry about it too much ...i know many people who have been refused in the last 12 months, including myself, with top ratings, high incomes etc
the actual rating is just a guideline ...the lending criteria of the companies is something else...the rating is just one factor in it they look at
you may have not fitted their new, ideal profile for a borrower, simple as that really
you can try elsewhere and may be fine - its just a case of finding someone in a lending frenzy ...usually the ones sending you those letters through the post - they have a pot of cash to lend out, and instruct the marketing depts to get rid of it to xxx profile of customer
the actual rating is just a guideline ...the lending criteria of the companies is something else...the rating is just one factor in it they look at
you may have not fitted their new, ideal profile for a borrower, simple as that really
you can try elsewhere and may be fine - its just a case of finding someone in a lending frenzy ...usually the ones sending you those letters through the post - they have a pot of cash to lend out, and instruct the marketing depts to get rid of it to xxx profile of customer
kieranbennett said:
According to my Experian credit report I have an 'Excellent' credit rating with a score of 999.
I tried to apply for a loan yesterday with Alliance and Leicester, although was told it was an Abbey loan and was refused.
The amount wasn't huge, £11k, I've never had any problems obtaining credit in the past, and I’ve always been up to date on payments.
The only thing I can think of that may have affected the decision was recently paying off a loan early.
Any other reason I may have been refused? Is the Experian credit report accurate? (All my details are up to date and accurate)
Is Abbey just a bit picky on who they will loan to, or is it the result of the banking problems?
My next problem is finding a bank to loan me the money I require at a reasonable rate, any ideas?
Who do you bank with?
Underwriting criteria is pretty strict at the moment. You are only really likely to get a loan off someone you have a relationship with. Current account, credit card, mortgage etc.
I would give the supermarkets a go. But they do use underwriting services from high st banks so be careful how many applications you make.
If I knew of any reputable brokers left then I would recommend one but they have all gone!
I tried to apply for a loan yesterday with Alliance and Leicester, although was told it was an Abbey loan and was refused.
The amount wasn't huge, £11k, I've never had any problems obtaining credit in the past, and I’ve always been up to date on payments.
The only thing I can think of that may have affected the decision was recently paying off a loan early.
Any other reason I may have been refused? Is the Experian credit report accurate? (All my details are up to date and accurate)
Is Abbey just a bit picky on who they will loan to, or is it the result of the banking problems?
My next problem is finding a bank to loan me the money I require at a reasonable rate, any ideas?
Who do you bank with?
Underwriting criteria is pretty strict at the moment. You are only really likely to get a loan off someone you have a relationship with. Current account, credit card, mortgage etc.
I would give the supermarkets a go. But they do use underwriting services from high st banks so be careful how many applications you make.
If I knew of any reputable brokers left then I would recommend one but they have all gone!
Edited by kieranbennett on Friday 5th February 10:07
I've banked with Alliance and Leicester for over 8 years, and they've had no issues in the past giving me credit. I thought yesterday was just going to be a formality so was a bit surprised when they refused. I do feel that i'm just a number with A&L though. And the fact that it was an Abbey underwritten loan doesn't seem to have helped.
It may be time I changed my bank.
I've put an application in with a supermarket, but concerned that it might come back declined as well. I presume two declines will affect my credit rating if this is the case?
It may be time I changed my bank.
I've put an application in with a supermarket, but concerned that it might come back declined as well. I presume two declines will affect my credit rating if this is the case?
Yep, numerous applications and declines might affect lending decisions. The salient point here is that your credit rating is one company's opinion on your reliability (and that company isn't even a lender). Underwriters will look at what is IN your credit file, which isn't confined to your credit history but covers things like how often you move, are you on the voters' roll, etc etc. I'm not suggesting you make anything other than a great candidate for credit but always bear in mind that banks form their own opinions.
Now, that said, what I would do is formally request the reason for the decline. You will probably have to write in and the initial response will be vague, but write again and you should get more information. I believe they are required (to a limited extent) to say why your application was refused. Having worked for A&L for a short time and had exposure to the admin and first-line underwriting there, I would not be surprised if a mistake had been made. It was not uncommon whilst I was there for the wrong letters to be sent (e.g. rejecting applications instead of requesting more identification).
Now, that said, what I would do is formally request the reason for the decline. You will probably have to write in and the initial response will be vague, but write again and you should get more information. I believe they are required (to a limited extent) to say why your application was refused. Having worked for A&L for a short time and had exposure to the admin and first-line underwriting there, I would not be surprised if a mistake had been made. It was not uncommon whilst I was there for the wrong letters to be sent (e.g. rejecting applications instead of requesting more identification).
I'm sure there's a "secret" credit file on us all. I recently applied for a 300k mortgage, I was putting 20% down, ie 60k. This was accepted, I had the offer in writing.
Now, meantime I apply for an 80k loan to buy a car.
While I am waiting for the decision on this my financial advisor calls. The mortgage offer has been withdrawn. No explanation.
Then the car loan is refused, again no explanation.
My credit file? Unchanged bar the searches.
They have secret files IMO.
Now, meantime I apply for an 80k loan to buy a car.
While I am waiting for the decision on this my financial advisor calls. The mortgage offer has been withdrawn. No explanation.
Then the car loan is refused, again no explanation.
My credit file? Unchanged bar the searches.
They have secret files IMO.
JohnnyJones said:
I'm sure there's a "secret" credit file on us all. I recently applied for a 300k mortgage, I was putting 20% down, ie 60k. This was accepted, I had the offer in writing.
Now, meantime I apply for an 80k loan to buy a car.
While I am waiting for the decision on this my financial advisor calls. The mortgage offer has been withdrawn. No explanation.
Then the car loan is refused, again no explanation.
My credit file? Unchanged bar the searches.
They have secret files IMO.
how did you work it out?Now, meantime I apply for an 80k loan to buy a car.
While I am waiting for the decision on this my financial advisor calls. The mortgage offer has been withdrawn. No explanation.
Then the car loan is refused, again no explanation.
My credit file? Unchanged bar the searches.
They have secret files IMO.
The financial services industry has been trying to hide secret files for ever and you just blow it right open.
JohnnyJones said:
I'm sure there's a "secret" credit file on us all. I recently applied for a 300k mortgage, I was putting 20% down, ie 60k. This was accepted, I had the offer in writing.
Now, meantime I apply for an 80k loan to buy a car.
While I am waiting for the decision on this my financial advisor calls. The mortgage offer has been withdrawn. No explanation.
Then the car loan is refused, again no explanation.
My credit file? Unchanged bar the searches.
They have secret files IMO.
I used to work at one of the main credit reference agencies and I wasn't aware of anything "secret". They seemed to be extremely careful about being very much above board. Whilst I was there my girlfriend at the time was refused a store card although she had a perfect history. I asked about and although they would not talk about an individual case, they pointed out that there are some basic indicators that they use. Being on the Electoral Roll (as mentioned above) is crucial and (at the time, but maybe less so now) a BT landline number with a history of payments. How often you change address was also a factor. My g/f had moved several times in the previous few years and wasn't yet on the ER at her current address, gave a mobile number on the application and didn't yet have a BT account history at the current address.Now, meantime I apply for an 80k loan to buy a car.
While I am waiting for the decision on this my financial advisor calls. The mortgage offer has been withdrawn. No explanation.
Then the car loan is refused, again no explanation.
My credit file? Unchanged bar the searches.
They have secret files IMO.
They also consider how many applications you've recently made. You made two considerable applications close together which may have spooked your lenders. Applications close together I'm sure I'd read recently were viewed as a risk indicator.
JohnnyJones said:
I'm sure there's a "secret" credit file on us all. I recently applied for a 300k mortgage, I was putting 20% down, ie 60k. This was accepted, I had the offer in writing.
Now, meantime I apply for an 80k loan to buy a car.
While I am waiting for the decision on this my financial advisor calls. The mortgage offer has been withdrawn. No explanation.
Then the car loan is refused, again no explanation.
My credit file? Unchanged bar the searches.
They have secret files IMO.
I recall your thread on the subject. In fairness to the banks, it sounded like your FA was dodgier than a <insert very dodgy thing here>Now, meantime I apply for an 80k loan to buy a car.
While I am waiting for the decision on this my financial advisor calls. The mortgage offer has been withdrawn. No explanation.
Then the car loan is refused, again no explanation.
My credit file? Unchanged bar the searches.
They have secret files IMO.
Have a look at Zopa http://uk.zopa.com/ZopaWeb/ If you have a good credit rating you will almost certainly get what you want here. Not a bank but where individuals lend to others, still fully regulated. Rates vary.
A&L are quite tight with their loans.
When i needed a loan for my co car, i applied with them as they are my bank. They said no.
Went with tesco's in the end, no problem apart from A&L had got my address wrong and had created a linked address on my credit file.
I wasn't on the electoral register though as had moved house about 5 months previosly and the GF pays the BT bill.
My current account was always a few grand in credit, and they could see the cashflow. They recently turned down an application for an extra £100 on the overdraft after xmas, so i might be changing banks as well.
When i needed a loan for my co car, i applied with them as they are my bank. They said no.
Went with tesco's in the end, no problem apart from A&L had got my address wrong and had created a linked address on my credit file.
I wasn't on the electoral register though as had moved house about 5 months previosly and the GF pays the BT bill.
My current account was always a few grand in credit, and they could see the cashflow. They recently turned down an application for an extra £100 on the overdraft after xmas, so i might be changing banks as well.
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