Loans

Question: What criteria do banks use to refuse personal loans?

(Posted by: Azureus on 2010-07-29 04:36:43)

I'm trying to get a loan of about £6, 000, my credit rating is maxed out at 999 so I am in the excellent category. Yet when I visit my bank, they say I failed on my bank scoring (my bank is Barclay's) but they won't tell me what type of things effect it and are quite vague on the subject incase I might manipulate it. They say challenging it based on my credit report won't do any good either. Can someone provide any information for me on what type of things might improve the bank score so I can get this loan? PS: No common sense answers like they base it on a perception of your ability to pay it back. That much is obvious, I refer to things like if you miss direct debits, if you usually have 0 balance for most of the month or things like that. The bank seem to think the bank score is seperate from my credit score, just to clarify. So far you are all answering in relation to credit report, mine is 999 as mentioned. The highest available score. The problem is the bank scoring!

Posted by: Biff Martin on 2010-07-29, 04:38:09

They base it on a perception of your ability to pay it back. If you had common sense you wouldn't need to ask such a basic question. I assumed you would know all the stuff like credit rating, payment history, work history, etc. Some people do not realize that it usually comes down to a judgment call. Might even be the way you dress or those tattoos, or piercings. Sometimes a bank does not have that much to loan out, then they raise the bar. Likewise, when they have excess money, it will be easier. Also sounds like you have a sucky bank if they will not explain the basics to you, like how to improve your credit. The best ratings are for people who USE credit, pay it back according to the terms, and have a good income/ dept ratio. Just goes to show: What's so common about common sense?

Posted by: E&L on 2010-07-29, 04:55:06

A credit score and credit rating CAN be two different things. With a credit score you want higher, with a credit rating, the lower the better. Make sure you are speaking about the same thing. When running a credit report to get a credit rating on an individual, a score of 999 would be considered bad since it is on a scale of 1 to 1,000. Banks take into account the amount of money you have available, length of employment history, and ability to payback and unsecured loan. If they feel that with your current expenses the payment would overextend you, then they can deny you. You can always apply at another bank.

Posted by: Dessie Archer on 2010-07-30, 07:54:40

Hello There are many companies , that offer credit report, but I would suggest you GoCreditReport.info , because they offer this service totally free .They are one of the best companies .They also offer credit monitoring, id theft alert, and many more things... Just Visit: the link and signup . I think that will help you