Loan application Q

[vtecyo]

I'll keep it brief.

I applied for a loan, got declined. I assume this is because I put my current address in when everything on my credit file is registered to my home address (not long out of uni).

Will this go against my record, or will it have in effect bounced back because according to the credit refs there is nobody living here by that name. The application asks for current address though - hence the issue. Nothing else would merit being declined s far as I can tell.

Thanks

Edited by vtecyo on Tuesday 15th August 22:32

[Sarnie]

vtecyo said:

I put my current address in when everything on my credit file is registered to my home address (not long out of uni).

Rule No.1: ^Don't do that. If all of your credit history is linked to another address then when they credit search you at the current address then nothing will be returned which will lead to an auto decline in most cases.

Get everything changed into the new address (especially electoral roll as reflected on your credit files) and reapply!

[vtecyo]

Am I ok to reapply then? I thought that was a bit no no in terms of credit rating and you have to wait a few weeks at least?

[ymwoods]

The decline will hurt your credit rating but if it is just the one then I would imagine not too badly. You're again right that multiple credit applications in a "short" amount of time will hurt your rating too. By short, it is usually 3 months where lenders will scrutinize it, 6 months before most ignore those reports. As always though, all lenders look at different things so everything is a general guide.

Although you will get added to the electoral role in your area pretty quickly, in my experience, it will take about a month for the change to actually show up so If you changed your addresses now and then tried again you should be in a better position.

Obviously all above presumes that it is only the address on your file which they declined it for.

[jpringle819]

I recently had a similar issue where I had forgotten to update my address with the bank, everything is paperless so I didn't think to do it. The address on my credit score didn't update for about 2 months. I would sign up for one of the credit checking services and keep an eye on it until everything is updated.

[romeogolf]

vtecyo said:

Am I ok to reapply then? I thought that was a bit no no in terms of credit rating and you have to wait a few weeks at least?

By the time you've switched all your addresses and ensured that the credit reference agencies have updated your place on the electoral roll it could be 2 months, so you'll be fine to reapply at that point.

[IrateNinja]

For the future, Moneysavingexpert offers a 'soft' credit search where they look at your history and recommend loans/credit cards you're likely to get accepted for without leaving a proper credit search marking on your file so it doesn't affect your rating. It's a no brainer.

[vtecyo]

IrateNinja said:

For the future, Moneysavingexpert offers a 'soft' credit search where they look at your history and recommend loans/credit cards you're likely to get accepted for without leaving a proper credit search marking on your file so it doesn't affect your rating. It's a no brainer.

That's what I did and went with the top approval one at 3.1% over 4 years.

[Jon39]

Presumably credit agencies never employ graduates, or those in the initial stages of their career, who often have to move home a few times, so they therefore make the assumptions referred to.

My children continued to use the family address for voting, banking etc. after leaving home.
They did not have any problems at all with credit scores.

Universities supposedly teach, so you would think they might take a moment to teach this aspect to all their new undergraduates.
It is rather late to learn this lesson, when you need a loan.

[vtecyo]

I resubmitted using "home" address and it went through.

Megane 265 here I come!