Denied loan

[GJ11]

Hello, I'm new to this forum and apologize if this has been answered previously. Recently I was denied a loan from HSBC , on the letter it says that I do not have a high enough credit score (Currently have 1 HSBC C.Card and a £1k flexi loan on my j.Acc) On the letter it says that HSBC use a credit referencing agency to acc/deny applications. In the same paragraph it says the C.report is not responsible for me being declined a loan......So what is? The only issue i've ever had is that my J.Acc has been O.D twice, and that was £20 max. I was given a mortgage agreement in Jan (from Nationwide) which I will not be taking up. I'm just wondering what's denying me a loan......there's nothing I can think of, I have a secure job (teacher) with a steady income which has been going into my HSBC account for 8 years or so. Any suggestions would be gratefully received. :confused::confused:

[Fletch2006]

Hi, welcome. Interesting, have you checked for any strange info on your credit report using a firm such as Equifax or Experian?

 

Check for any links to anyone you may have been financially linked to in the past. Also you haven't recently moved have you?

[GJ11]

Thanks for the reply. I'm waiting for my credit report to be delivered. Must be through the mail as they cannot do it online due to my address being in a rural area. The only reason I can think of is that I've read somewhere that if you have two lines of credit open on HSBC (being my c.card and flexi loan) that they'll deny you. To be honest I find it strange as a month ago I took out a new mobile contract and passed the credit check.

[johnnymitch]

hi GJ11 ,let me add my welcome to the forum ,

 

I find this rather strange and I think you need a fuller explanation from HSBC as to why they denied you this loan. I can't see it being because you've got two accounts with them already .... ..... also, as Fletch says "Check for any links to anyone you may have been financially linked to in the past."

 

I think I would write to HSBC(recorded delivery) at their Customer Services Dept give them the info you've outlined to us in #1 and ask them to give you a proper explanation of their reason for refusal ....

 

HSBC Bank Plc

Service Quality Team

Arlington Business Centre

Millshaw Park Lane

Leeds

LS11 0PP

 

If you get no joy come back and let us know, someone will answer ...and we're user -friendly on here ....... .

[GJ11]

Thanks for your prompt reply. By the "links" to anyone do you mean companies or people. Not sure if my Mrs has a good credit rating, if not is that enough to deny me???

[johnnymitch]

Hi again GJ11

As credit ratings usually work on addresses, amongst other criteria , if someone else at the same address has a lowish credit rating , it may affect your ability to get credit ... unless you can convince them it's not you who is the risk ...

[GJ11]

Hello again, just received my credit report. What exactly should I be looking out for? What constitutes a bad report or a good report????

 

Thanks

[johnnymitch]

Have a look at this link GJ11 :

 

http://www.experian.co.uk/downloads/consumer/YCREJul08.pdf

[GJ11]

Great thanks, I can look to sort this problem a.s.a.p

[GJ11]

Ok a quick update on this annoying situation. I've looked through the c.report and the book that explains everything. There is nothing bad on there!!! The worst is 1 1-2 score. Other than that loans have been paid off on time and there are no issues. I'm baffled. The only strange thing is that a company called CENTRICA have linked me with my mother financially (I have never ever had any financial commitments with her) So ill sort it tomorrow.

 

Thanks

[GJ11]

Just been to HSBC. The friendly woman couldn't help at all. She had no idea why I was denied. She looked through everything and the only slight idea she could think of was that my j.acc was o.d 3 times, all of which were paid off the next day........they told me to wait 3 months before re-applying again.....bang goes the car I wanted!!!!! gutted

[Carningli]

Well to my mind HSBC's attitude was summed up by the friendly woman, she couldn't understand why you had not been advanced a loan and as usual couldn't help you.

 

May I suggest that you ask her who controls your account and how can you contact them? I only hope you get a reply, but I don't expect you will.

 

Carningli

 

Carningli

[GJ11]

Haha I will try, not holding much hope though. Bit of a catch22 now. Not sure what to do next.....may try a different bank and see what they say:confused:

[johnnymitch]

Hi GJ11:)

 

I wouldn't let them off the hook... if you have been wrongly defaulted to a CRA because of something which is inaccurate ,that is not on ....

 

It may be worth while going back to your friendly lady and ask her who would be responsible for getting this removed .... and at the same time ask for her name.... tell her it's for the letter you'll send to HQ saying she was able / unable to help you .......that may kick-start her a bit ... .

[GJ11]

Thanks will get onto it tonight. Will also try looking elsewhere for a loan, the lady said that my actual c.report was good, as was my HSBC credit behaviour and that the only reason she could think of was the j.acc being o.d 3 times!!! If thats the case then it's shocking!!!:?