To tell my bank I am closing my account on Thursday if they don't approve me for a loan?

[Kitsandbits]

Im going to apply for one on Thursday. Ive never been in debt, Ive never borrowed before, Ive only ever gone overdrawn twice, Ive been a customer for 6 years.

I applied for a loan when I got my council house and they told me it was because i had no credit rating ~(never borrowed) THEY advised me to get catalouges and store cards or a credit card to build my credit.

I got 2 catalouges and appiled to my bank for a credit card - they declined me again!

So on thursday I am going because its been 4months since my last application and Ive done everything they have asked!!

Ive bought my credit report from 2 different companies who both rate me in the 700/750 out of 1000 and a 3star rating whic would 'be apporoved by most lenders'

So AIBU to think that if they refuse me agin (for no bloody good reason as far as I can see) that I should close my account and start new with another bank?

Im so riled with them, they are a shit bank and have never done anything for me iykwim - I just know they are going to say no, and I really need this

PS after getting 2 catalouges and a store card - and applying for a few credit cards (all spaced out over 6 months) my credit rating still has

'no searches on your file in the last 12 months'

which is marked as 'bad for my rating' but why dont they show up if I have applied?

I understand why you are annoyed but I would check hypothetically with other banks first on their policy.

You may find you change banks and get the same result as they will do the same credit checks.

I work for a bank and we honestly have no say over loan applications - we input details and literally have to wait for computer to say 'yes/no' and although we would offer advice etc the 'i'll close my account' line would not be able to sway any judgement as its the banks policy and there is no leeway. Sorry

But my credit ratings not bad! I dont see why I am getting refused

Im on the electoral role here - everything on my credit check is 'green (meaning good) So its really starting to get me down because I feel like Im being punished for something! LOL

And the final straw was when my little sisters delinquant 18 yr old boyfriend who is jobless was apporoved for a £2000 loan last week

eandh do you have any idea why it would be a 'no' for me though?

Applying for cards may not be enough , the account may have to be actively and regularly used to clock up a rating. Isn't it a bit of an empty threat though , since you are less likely to be approved for a loan by a lender where you have not even got an account yet. Why not open another for the timebeing and then apply in a few months. Do you have any proof of income or security for this loan or is it completely unsecured?

The account is used constantly,

WHat do you mean proof of income? Yes we have wageslips and stuff is that what you mean?

on any persons credit rating there are scores for different things and the higher points the more likely you are to be said 'yes to'

higer points go for owner of home (outright/mortgaged)

length of time at address (ideally more than 3 years)

length of time at your bank

age

income (some companies also take into consideration your rent/mortgage payment and council tax payment to work out affordability of monthly income)

exisiting active credit history ie applied for credit card etc used and can be evidenced that you are a reliable repayer (each credit you owe is listed as eg

MBNA CREDIT CARD OUTSTANDING BALANCE £300
LAST PAYMENT £150 CREDIT LIMIT £4000

000000000000000000

All those noughts show that you have made a payment on your account each calender month and that payment was made on time

sometimes figures may show

0000001000002

the 1 or 2 will show if payment was late, normally 3 late payments in a row means a default

I know its frustrating that because you have never borrowed/owed you can't/having problem now, but to the bank you are a 'risk' because there is no evidence of any repayment

Hi eandH

nut I got catalouges to build it up like they said,

but on my 2 credit reports they dont show up - neither does my store card!

So I am paying things off well each month but its not even recorded on my credit rating!

also if loan is secured (ie car finance) then obviosuly the bank/finance company can reposses vehicl and make their money back, thats why mortgage/owners of property get more points as bank can take things further if they need to and there is an asset there (ie the house) which would repay any monies owed to them

where did you get your credit rating from most companies use experian/equifax and they should show all credit aplications (will also show all declined applications such as the loan you applied for earlier in the year as some people will apply for 6 loans in a day because they have been declined and this actually decreases tehir rating)

By the way excuse the typing dd1 pulled most of the keys off the laptop and have some buttons that are 'sticky'

AH right I see, we just rent.

Can I just ask aswell

If you are a house wife and don't work but get working family and CB paid into your account then can you apply?

I ask because my DPs rating is bare too - and he cant even get catalouges (no history at all)

so would it be morelikely to be approved if i applied on myown

or with him together as he gets the income - but has no credit history?

annualcreditcheck and garlik i used.

whose name are you applying under - that may have a bearing on the credit rating they use.

Kits - I think I saw your other thread about this recently.

Is it you or your DP applying for the loan? IIRC, aren't you a fulltime mum? Does your DP pay a regular income into your bank account?

It could simply be that you don't have enough going in to your account each month.

They may well not take benefits into account as income.

I think (well they used to) experian do a free check (you sign up but cancel after 30 days) or there used to be an address where you sent a £2 cheque to and they posted your credit report. Def worth applying to get your experian report as 90% of lenders use experian.

Am not sure re housewife thing as all applications I have ever done have been for joint (ie dh salary and dw hosuewife) or salary (ie the person applying has an income)may be worth asking your bank their policy prior to starting an application (although when I got our sofa from dfs on interest free credit that lady said that employment didnt matter they base on credit score alone
)

I have around £700 going in each month and I applied for a joint loan with DP who gets his wages paid into HIS account.

I totally see where you are coming from, and I would feel the same, but be careful about closing one account unless you are sure that you can open another. Lots of banks nowadays only want you if you are guaranteed to have X amount lodged every month, or they may only offer you certain types of account with restrictions and high charges. I worked for the CAB for years and people were often, very understandably, upset to be told that there is no right to a bank account.

Hi Kits

I also work for a bank. Previous poster is correct. Do not shut down yr bank account - they all pretty much use the same polices and guidelines. You will have the same problems elsewhere.

Have you got an agreed overdraft limit? You say you've been overdrawn twice - is that with prior arrangement or not? The best way to start building your credit profile is with the Bank itself firstly. Start small by asking for an overdraft limit. If you stay within this and pay it back it builds yr internal credit rating and history with them.

The other thing you don't say is how much you want to borrow. The ability to repay is extremely important. If they look solely at yr income (including Child benefit) is it enough to support repayments of the loan and family life? For every dependant you have they need to allow a certain amount of free income per month after you paid your commitments (rent, bills, loans etc)

The loan should be done jointly if the funds are for a joint purpose - also if yr DP pays for household bills etc it is entirely appropriate to include him on the application. In fact I would suggest it would be silly not to. All too often if a relationship ends one party is left unable to repay a debt. If both names are on the loan then both people are responsible.

When you go to the Bank ask for an appointment with someone who you feel knows what they are talking about. Explain yr situation and the advice previously given. IMO I would make sure you don't speak to a "kid" who just inputs data - aim to speak to someone who understands the process.

Good luck

ps if you include dp and he banks elsewhere they will need to see the last 3 months consecutive staements from him to prove his income and how well his account runs at other place