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Original poster

been refused a loan despite squeaky-clean credit history?!

8 replies

blumpblump · 02/04/2006 19:37

I'm a regular but have changed my name due to financial details in this...
I've just applied for a 7K loan from Northern Rock (to go towards a new car) and have been refused. I'm really stumped by this - we own our 600K house outright, have no loans or other debts, have a credit card each which we always pay off in full each month, never go over our overdraft limit etc., etc.
The only reasons I can think of are that dh has only been in his current job for 5 months and before he was self-employed for 5 years (successfully, though!) and that we have no real credit history really - last time we had a mortgage was 6 years ago, and we don't even have mobile phone contracts (all PAYG). Our net income is 3.2K a month - certainly enough to comfortably meet the payments of £350 pcm.
I'm really annoyed Angry. Someone please tell me why we've been refused.

OP posts:
waterfalls · 02/04/2006 19:43

Are you on the election roll?

Also the saying goes, if your not in debt you dont exsist.

suenorth · 02/04/2006 19:43

Northern Rock might be able to tell you if you ask them why. I know that the highest credit score is for people who have a lot of credit (cards, loans, mortgages) but always make payments on time. Maybe it's as you suggest: because you don't have any credit you have no credit rating so you've been rejected by some kind of automated system. If you talk to your branch maybe they could override this - or is that just too human for banks??

Good luck anyway, I hope if you explain it they'll change their mind.

zippitippitoes · 02/04/2006 19:45

you can get your credit report from experian or equifax for a couple of pounds

kalex · 02/04/2006 19:47

Because you are in that rotten position of having no credit - and therefore can't get any. I sorted it out by buying something out of COOP on interest free credit, and therefore had a credit rating.

katzg · 02/04/2006 19:48

daft as this sounds it might be because you haven't got any credit with anybody! so by not making regualr mortgage/loan/ect payments it actually makes you a higher risk! its just crazy, i know someone who had to take out a credit card to get a credit rating!

Original poster
blumpblump · 02/04/2006 19:53

thank you all, that's what I suspected... I think I'll do what kalex has mentioned. Doesn't help with this though - I need the money quickly, will have to ask my parents whilst I sort out a loan. What a PITA.

OP posts:
Socci · 02/04/2006 19:59

Maybe they don't think it's worth lending you the money (from their pov) because they will not make so much money out of you in interest (as you have always been so reliable with your payments and have enough money to pay everything off). Apparently this is a factor they consider.

MaybeBaba · 04/04/2006 20:41

Is Northern Rock your own bank (ie where your salaries go in) or were you going for a cheap interest rate? You may have to get the loan with your own bank and pay the higher interest rate, or ofer to have a salary paid into a Northern Rock bank account - definately try phoning them! My mum had a similar problem buying something on 0% in Homebase!

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