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Original poster

How the hell does this work?! We are refused a loan by our bank ...

19 replies

kitsandbits · 27/10/2007 20:58

My DP works full time, we have rented a house for 2 years with no arrears, I have several store cards and catalouges that are promptly paid every month - not just the minimum either lol, admittedly we have never had credit cards ect (no bad history at all!!) - but are good, reliable candidates i think!!

and yet my sisters boyfriend got a loan wednesday day of £1000 .. then went back Thursday and incresed it to £2000.

He is 18, in college - has a shit job with no reliable hours, he has no credit history either ... he has court fines against him which he had to show them (thats part of the reason hes getting theloan to pay them off)

So why the hell was he apprpved and we weren't??

Am genuinely baffeled!

OP posts:

CrookshanksinJimmyChoos · 27/10/2007 20:59

You are renting - the person in the house before you may have had bad credit and that would stay with the address, regardless of the tenants - I think!

ruddynorah · 27/10/2007 21:00

were you declined on the credit score or on affordability?

SuperMonkey · 27/10/2007 21:01

Have you checked your credit file? Maybe there's something bad against your name accidentally. Sometimes with rented property a previous tenant's bad credit history can be marked against you by mistake.

Hassled · 27/10/2007 21:01

Are you on the Electoral Register? Sometimes its something as simple as that. If you are, I agree it's baffling - I wouldn't have thought not having credit cards would matter as you do have a credit history, and therefore a rating, with the store cards. Could they have doubted whether you could meet the repayments?

Original poster

kitsandbits · 27/10/2007 21:01

Credit score I think, we have had no credit before - I last applied about 4 months ago, and have since got a few catalogue accounts to build my credit up!

We can afford it no problem.

OP posts:

SuperMonkey · 27/10/2007 21:02

X post! Try this site

Original poster

kitsandbits · 27/10/2007 21:03

The man wholived here before us was in massive debt!

Do you think if we went into the bank we would have a better chance than applying online? Then we could tell them the previos tenant was in debt?

We are on the electoral register yes.

OP posts:

ruddynorah · 27/10/2007 21:03

how many catalogues have you applied for in those 4 months? can look bad to have applied for too much in a short time. were you ok on the affordability?

lizziemun · 27/10/2007 21:06

It could be a simple as the fact that you pay everything at the end the month, so you are seen as a bed resk because you owe nothing you don't have a credit record.

The reason i say this is because my Aunt and Uncle had the same problem when applying for their first morgage. Even though they had 30k deposit.

SuperMonkey · 27/10/2007 21:06

I expect it's because of the previous tenant. Check your credit file, if that's the problem then you should be able to tell and then you can get it removed from your file.

lizziemun · 27/10/2007 21:08

Sorry should say bad risk not bed resk. I think i need go to bed have a 7 week dd2 who thinks 5am is a nice time to wake .

harryruby · 27/10/2007 21:10

yep,go into the bank. when a person is dealing with it they can look into things better rather than a computer that just looks at everything in black and white.

Original poster

kitsandbits · 27/10/2007 21:10

2 catalogues.

And only applied for those as thats what we were told to do to improve our credit rating as it was non exsistant.

OP posts:

Megsdaughter · 27/10/2007 21:25

I went to get a car loan a few years ago, I had lived in a rented HA house before that, I had never been in arrears, I had no credit cards, didnt have any thing on Hp, and couldnt get a loan. I had a job that brought in 20,000 a year.

When I persued it I was told it was because I had no credit rating!!!

My new Dh got the car in his name (and he had a shit credit rating, but because he was in the Armed forces with a gurenteed wage it was allowed)

I then got a credit card from my bank, I used it to get my petrol on and paid it off evry month, was told I still had no credit rating after a year!!!!!

It seems that the only people who get credit are those in debt.

Dawnybabe · 27/10/2007 21:31

You've probably got no credit rating. My dh has never borrowed money in his life, being the smug high earning sort who's never had to. The mortgage company ran a check on him cos he dodn't appear on any credit lists.

The 18yo will automatically get a loan cos he's a bad payer and the bank will earn loads of money out of him in interest. If you never pay any interest charges or borrowing fees of any kind, they're not going to want to lend you any money cos they probably won't make much out of you!

tiredemma · 27/10/2007 21:37

I have to admit- it was only after getting into shit with my bank did they throw money at me. I had no credit history and became grossly overdrawn ( over my overdraft)- manged to pay it off and within a year the bank offered me a 7k loan and a C card with 5K on it. They love people like me- thats how they make their money.

Original poster

kitsandbits · 28/10/2007 08:45

I have an overdraft but have never gone over it,

but I do get very close to it at the end of each week, but thats only because of the wedding coming up and things constantly need paying for!

OP posts:

Eddas · 28/10/2007 09:03

You need to ask the bank why they declined the loan. I got turned down for a credit card. Thought OMG it's because of bad credit, even though we've always paid everything etc, just panicked! I rang they said to get a credit check, did that, had a great rating. In the mean time the bank had sent me something, and it was becuase they had my address wrong so because that hadn't matched mey credit info they declined. IE it said flat 2, blah blah road instead of just 2 blah blah road! It is computers that process everything. They told me that if I lodged an appeal against it then more than likely i'd have got the card, but i applied elsewhere and got one.

larry5 · 28/10/2007 13:53

Some years ago when we wanted to buy a computer we were turned down for credit because they put the wrong first name in so when the credit search was done it came back with the fact that no one by that name lived at the address.

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