Credit Report And Loan Refusal

[TIN CAN]

Hi,

Just been refused a loan from barclays (my current account).... been with them for 15 years never any problems.... have a massive over draft limit but have no problems with keeping within it or any other problems.... have a few credit cards totallying 9k so thought i would get a loan to pay them off..

Barclays just refused the loan, said they would write to advise. Thing is i then went and did a credit check and my credit score comes out at 'Excellent' and out of the 1000 top mark my credit rating is 968.....

Would barclays refuse me a loan just because of my overdraft as i can see no other reason..... i have moved recently and sent details for the electrol register to be updated too but can't see that being a problem.

Anyone else had issues like this ? , i have no problem with earnings either , earn enough lol...

[B B Leo]

the lenders are being a bit more strick m8. cause of this northern rock thing..
go to another lender like mbna or someone. but dont try to many as this will go against you m8

[lithho]

i was with them mate, did nothing for me, went to the hsbc and all was good, they do loans and are very helpfull, also had a loan with tesco years ago, but it depends on how much you want as i think they dont do massive loans anymore

[wulliec]

For a loan I always go with Alliance and Leicester or their sub-bank "moneyback bank".
They tend to have the lowest interest rates as well, IMO.
No pens for early repayment either.

Some banks just aren't doing loans to people at the mo as they don't know exactly where they lie in the sub-prime fiasco.... ie they haven't totalled up their potential losses.

[blacksheep]

they're arseholes when it comes to lending - I wanted them to extend my credit card, they were only willing to give me another £600 - other companies were offering 5k more than what I originally wanted from them so took one with halifax - 15 months interest free on spending (if thats of use to anyone).

[TIN CAN]

Just tried Alliance and Leicester who say on their website that they will email me the decision within 24 hours....... within two minutes i got a response saying

Thank you for your recent Loan application. Please call us on 0845 300
4165 to finalise your details.

We are open from 8am to 6pm Mon to Fri and 9am to 6pm on Sat & Sun.
Please note your call may take up to 15 minutes after which time we will confirm the outcome of your application.

Regards


Does this sound like another knock back...........

Can't understand it, i could afford a 25k loan so its not affordability issue and i have never missed a payment on anything before.

[B B Leo]

Just tried Alliance and Leicester who say on their website that they will email me the decision within 24 hours....... within two minutes i got a response saying

Thank you for your recent Loan application. Please call us on 0845 300
4165 to finalise your details.

We are open from 8am to 6pm Mon to Fri and 9am to 6pm on Sat & Sun.
Please note your call may take up to 15 minutes after which time we will confirm the outcome of your application.

Regards


Does this sound like another knock back...........

Can't understand it, i could afford a 25k loan so its not affordability issue and i have never missed a payment on anything before.

no m8 just ring them and try. they are part of mbna

[Fishboy1]

Banks calculate a 'credit line' (the total amount they are prepared to lend you) for each customer, once you have reached your limit with them they will not lend you any more, regardless of your credit history. Another lender, another credit line.
Just ben on a finance course.

[wulliec]

Just tried Alliance and Leicester who say on their website that they will email me the decision within 24 hours....... within two minutes i got a response saying

Thank you for your recent Loan application. Please call us on 0845 300
4165 to finalise your details.

We are open from 8am to 6pm Mon to Fri and 9am to 6pm on Sat & Sun.
Please note your call may take up to 15 minutes after which time we will confirm the outcome of your application.

Regards

Does this sound like another knock back...........

Can't understand it, i could afford a 25k loan so its not affordability issue and i have never missed a payment on anything before.

I got that when I last went for a loan with A and L. I'd just moved gaff and they wanted to clear up some details that weren't asked online.

[TIN CAN]

so bascically try a bank who i have had nothing to do with

[TIN CAN]

I got that when I last went for a loan with A and L. I'd just moved gaff and they wanted to clear up some details that weren't asked online.

just moved also hope its that, cross fingers then..... will call them tomorrow

[Gel]

It's isn't Northern Rocks fault, it's the same problem that Northern Rock has.

Low levels of global liquidity means there's less easy money to lend.

What banks are doing is reigning in their liabilities and 'unknown quantities'

You may of been low risk before but have probably been revised downwards since, along with everyone else in the UK.

Northern Rock has now borrowed over 21 billion, Barclays and RBS have borrowed money, just not from the Bank of England...they have the same problems

[blacksheep]

barclays has had to have emergency/short term loans recently too which may be part of the issue.

[TIN CAN]

For info, just called Alliance And Leicester this morning who have offered me the loan, only thing is the girl was basically giving me this crap about loan protection, i basically accepted it initally as it was put across that i may be at risk otherwise and thought they would refuse me if i said no..... how does cancelling it work, she went on to say i must sign and tick the forms and if i miss a tick in the boxes confirming insurance it would mean the loan not being paid immediately and delays for further checks.....

Could someone confirm re: cancellation and when is best to do it, i.e when the monies the account or before???

Thanks again for all your comments

[funkyg]

That's really naughty. They can't refuse a loan just because you don't take out thier insurance. The payment protection market is HUGE, they make amssive profits out of it. I think you should cancel it before the loan is taken out, once the loan starts you are tied into the agreement. That said there may be a cooling off period, you'd have to check the small print before you sign.
www.fool.co.uk have loads of horror stories and advice about PPI, thier view (and mine) is to knock it on the head. If you want it, fine go for it but don't be pressured into it. They are SELLING you an insurance that you may not need. I don't know your financial status, but a lot of the time you are abetter off without it.
My mate took out a loan with Northern Rock a couple of years ago to clear off his credit cards, and they tried the exact same thing with him. They didn't actually come out and say you will not the get the loan if you don't take out out insurance, but the hinted at it like with you. He told them he didn't want the PPI and the loan went through with no problems.

[TIN CAN]

they did mention a calling off period so will check the paperwork when i get it..... i definately don't need it. they offered a full protections costing over £80 per month extra...... refused that and then offered life insurance on it..... i will osrt out cancelling that once i get the loan....

[Ganty]

they did mention a calling off period so will check the paperwork when i get it..... i definately don't need it. they offered a full protections costing over £80 per month extra...... refused that and then offered life insurance on it..... i will osrt out cancelling that once i get the loan....

9 times out of 10 there is a 30 day cooling off period, so as soon as you've got the paper work ring them - they will probably tell you they need it in writing so get it done. ASAP and get it sent, recorded.

Like funkyg said, banks are VERY naughty when they imply that the loan may not go through if you haven't got the protection, but normally, it's crap.

If you decide you do want PPI, you can take it out from a 3rd party, at a much lower price.

[rmj2663]

I thought I heard that guy from Moneysaving expert giving out the lowdown on these PPI policies last week. Seems to be the new thing to be looking out for these days. Absolute ripoff, as said above these can be picked up much cheaper 3rd party.

[Toffeeman]

Apparently the electrol roll only gets updated twice a year - Arpil and October - so if you've sent your new details in the between these then this could be a reason - especially if it's a big loan. I had a similar problem with Abbey, I wasn't listed at my current address even though I've sent my details twice in the past few months to the electrol register. They told me to go back in Novemeber after it's all been updated.

Just to add to what everyone else has said about PPI - don't get it with the lender, third party insurance is much more cheaper.

[TIN CAN]

toffeman thanks for the info but you nicked me avatar lmao......

now there is two insects i need to look out for !