Loan rejection - not sure why

[Gad-Westy]

Long story short. I want a smallish loan, well within my means in terms of outgoings etc. Checked what's available, sainburys looked good, filled in an application and today I found out I have not been successful, no reason given. Not wanting to blindly apply elsewhere, I checked my credit report with experian (who sainsburys apparently use) and I'm excellent with no blemishes at all. So that I don't waste any time and potentially damage my credit score, can anybody give me any likely causes for rejection?

I did move house three months ago and I'm wondering if I'm not on the electoral register yet at the new place. Would experian have flagged this if this were the case?

[Soovy]

Loans are now much harder to get, that's all.

[Gad-Westy]

Soovy said:

Loans are now much harder to get, that's all.

I realise this but without being specific I would consider my income/outgoings compared to the loan amount/period requested to be of miniscule risk. If that is all there is to it, it makes me wonder who actually can get a loan...

BTW anybody know if I can do a quick free check to see if I am on the electoral register at my new address?

[anonymous-user]

I'd try Equifax as well. I know some companies use both.

[J500ANT]

Ditto - have had a letter through implying i'm overcommitting myself, which i'm not. Trouble is, they don't know i've just ended one HP agreement etc. My fault for applying at the wrong time, maybe.

Edited by J500ANT on Thursday 24th June 12:43

[Stevenj214]

Were you rejected outright?

I was offered a silly rate from Santander instead of their market leading headline rate at the time (might even have been through sainsbury's?) but Tesco finance came up with the goods for me at 2nd best rate in the market.

[Odie]

I have an excellent credit rating and have been rejected a few times, having a good credit rating can sometimes work against you..

[scotal]

Odie said:

I have an excellent credit rating and have been rejected a few times, having a good credit rating can sometimes work against you..

So can being rejected a few times......

[Deva Link]

It's probably the recent change of address - the younger people in our office who are constantly on the move are often refused credit.

[GT03ROB]

Could just be a typo on the application form.

Couple of years back went into an O2 store got rejected as I failed their credit check. Couldn't believe it. Ran a credit reference over internet, clear. Went back to a different store in the afternoon, no problems at all.

[E55 Max]

Gad-Westy said:

can anybody give me any likely causes for rejection?

I did move house three months ago and I'm wondering if I'm not on the electoral register yet at the new place. Would experian have flagged this if this were the case?

^^^ This

If you are not on the Electoral role they struggle vto validate your address.

[Gad-Westy]

E55 Max said:

Gad-Westy said:

can anybody give me any likely causes for rejection?

I did move house three months ago and I'm wondering if I'm not on the electoral register yet at the new place. Would experian have flagged this if this were the case?

^^^ This

If you are not on the Electoral role they struggle vto validate your address.

Well, I phoned the local council and it appears I'm not on the role. Got an application form on the way and could then have another 7 weeks to wait. No particular hurry (luckliy its not to buy a car, otherwise I'd be tearing hair out) but slightly frustrating all the same. Hopefully that may remedy the situation.

[Deva Link]

Gad-Westy said:

E55 Max said:

Gad-Westy said:

can anybody give me any likely causes for rejection?

I did move house three months ago and I'm wondering if I'm not on the electoral register yet at the new place. Would experian have flagged this if this were the case?

^^^ This

If you are not on the Electoral role they struggle vto validate your address.

Well, I phoned the local council and it appears I'm not on the role. Got an application form on the way and could then have another 7 weeks to wait. No particular hurry (luckliy its not to buy a car, otherwise I'd be tearing hair out) but slightly frustrating all the same. Hopefully that may remedy the situation.

When you applied for loan did they not ask for your previous address?

[Gad-Westy]

Deva Link said:

Gad-Westy said:

E55 Max said:

Gad-Westy said:

can anybody give me any likely causes for rejection?

I did move house three months ago and I'm wondering if I'm not on the electoral register yet at the new place. Would experian have flagged this if this were the case?

^^^ This

If you are not on the Electoral role they struggle vto validate your address.

Well, I phoned the local council and it appears I'm not on the role. Got an application form on the way and could then have another 7 weeks to wait. No particular hurry (luckliy its not to buy a car, otherwise I'd be tearing hair out) but slightly frustrating all the same. Hopefully that may remedy the situation.

When you applied for loan did they not ask for your previous address?

yep

[anonymous-user]

It's also worth noting that while Experian telling you you have a high score is a positive, you have no idea what score the lender is giving you. I.e. Each lender has their own scorecard to which they work, they change this regulary to tailor the type if clients they are taking on at a particular time.

[CobolMan]

MRSNEAK said:

It's also worth noting that while Experian telling you you have a high score is a positive, you have no idea what score the lender is giving you. I.e. Each lender has their own scorecard to which they work, they change this regulary to tailor the type if clients they are taking on at a particular time.

It's also worthwhile trying again next month - I know at least one financial institution in the UK applies new scoring rules each month.

[CobolMan]

swerni said:

CobolMan said:

MRSNEAK said:

It's also worth noting that while Experian telling you you have a high score is a positive, you have no idea what score the lender is giving you. I.e. Each lender has their own scorecard to which they work, they change this regulary to tailor the type if clients they are taking on at a particular time.

It's also worthwhile trying again next month - I know at least one financial institution in the UK applies new scoring rules each month.

and each time you are refused credit it goes on your record.

bit of a catch 22

True but then again you may get accepted next time - nice car in your profile swerni

[R11ysf]

A lot of these credit reference checks don't mean anything to the lender anyway as they still only use them as aguide and then apply their own system. I was refused a 3 mobile phone contract despite being with them for the last 5 years, I then gave them my old number and all was fine 5 minutes later. I was also refused a credit card, that I didn't even want, because I didn't have any other credit cards!

[Number 5]

R11ysf said:

I was also refused a credit card, that I didn't even want

You can only get refused for a credit card if you make an application in the first place, so if you did'nt want the credit card why would you apply for it, seems a bit strange to me.

The credit reference agencies hold no records of the decisions made by credit/loan some utility companies etc... the only information they hold is a record of the searches that have been made by credit/loan/some utility companies, the rest of the information they hold is regarding your payment history on all of your existing accounts or previous accounts up to six years. So if you applied a thousand times for a loan and were declined a thousand times the credit reference agencies would only hold the search information made by the loan companies, however this could also have adverse effect on your credit rating if even if you were accepted for every application you made for credit was successful because the decision is not placed on your credit file, this rings alarm bells with the complex formulas used to credit score people.

If you need borrow money the best thing you can do is obviously seriously consider every application carefully, most companies like to see a stable residential history (electoral roll) minimal previous credit searches (especially in the last six months) home telephone numbers can also benefit applications, and off course a strong previous payment profile.

Edited by Number 5 on Wednesday 30th June 22:08

[R11ysf]

Number 5 said:

R11ysf said:

I was also refused a credit card, that I didn't even want

You can only get refused for a credit card if you make an application in the first place, so if you did'nt want the credit card why would you apply for it, seems a bit strange to me.

Edited by Number 5 on Wednesday 30th June 22:08

Sorry I didn't make myself clear. I've never had a credit card and never needed one. I applied for a AMEX card for 2 reasons, 1 - it was sick and tired of having to phone my bank every time my card got blocked abroad and 2 - I had a fairly large expenditure month (20k+) and thought getting 5% back for doing nothing was worth doing.

Anyway, having lived at the same address for 6 years on the electoral roll they declined. Didn't bother me, it was just annoying.