HSBC - £5000 loan application refused, bank won't tell me why. Will Experian help?

[linzie]

Ive been refused £5000 loan from Barclays.

Credit rating is normally OK and in past this would not have happened.

HSBC wouldn't tell me why they refused the loan

Experian shows 2 credit searches on file, but i need to pay £14.99 to see these 2 searches

I requested the free Experian credit report, should be here tomorrow.

What exactly should I be looking for to find out why loan got refused.

Experience credit rating showing 970 over 7 years ago it was 987, something caused it to drop

What can I also do to increase the experience credit rating?

Thanks Everyone 

[dx100uk]

titled updated , moved to HSBC forum.

banks dont only use CRA files.

theres not a lot you can do.

certainly dont fall for these scamming ads/cards that claim the improve your credit rating.

what currently shows? any revolving credit to show you can manage your money?

[lolerz]

Try grabbing your report for free off of somewhere like ClearScore, that should show any hard searches.

The actual "credit scores" shown on the websites are a load of rubbish mainly, what matters is what's in the report.

However, as dx mentioned, once declined there's nothing much you can do. And applying for other loans in a short period will make you look desperate which means that companies won't accept you.

[linzie]

Yes. There is £92k mortgage outstanding 

I will check clearscore, how does it differ to experian? Can they correct faults?

After bank does credit search on your file, how long does it stay for and how long should you wait before applying again?

What tips can you give to boost your credit score? Is taking mobile phone contract helpful?

Edited March 27 by lolerz
Quote Removed.

[lolerz]

A mobile contract is good as it shows revolving credit (providing you pay).

I wouldn't worry too much about the number. Just make sure you keep your credit up to date and you should have few issues.

A lender doesn't have to lend to you and can decline for any reason. Just space out your applications so you don't get too many rejections at once.

[dx100uk]

21 minutes ago, linzie said:

Can they correct faults?

why do you think there is a 'fault'?

the refusal is probably nowt to do with your credit file/rating.

hard searches stay for one year.

 

 

[fkofilee]

I hate these conversations - Because you will never find an answer.

You will never ever always get approved for a financial product because it depends on the lenders criteria for lending. Also whether they are actually lending. Sometimes companies wont lend for a while. 

I remember my brother ordering from Currys during the pandemic and he got a decline. He was furious - Turned out that Creation had really tightened their belts up (Existing customers too!) 

 

Honestly? Use a good comparison site - Itll give you some good options while only soft searching. Also the drop to your Credit Score (Which is worthless I might add)  will be because of these 2 hard searches. Stop doing Credit applications for a little while. 

 

oh... You need to read this.... 

 

 

[Nicky Boy]

As already mentioned freely available "credit scores" are fairly useless.

All lenders have their own "credit scoring" system, that for obvious reasons they don't divulge. And they're "scored" differently to the freely available ones.

As soon as they could, we've always encouraged our two children to use credit cards responsibly... Pay off in full, etc, to generate good history. It's paid off.

At quite young ages, they have both obtained loans for cars, mortgage and their credit card limits are through the roof.

Personally, I have shifted debt around a lot on credit cards (even financed a house purchase once at 0% ) and I've only ever been refused a credit card once, sorry twice by the same company, over many years. They must have something very different in their lending criteria. You're a tight one, Mr Branson.

[linzie]

dx: What do you think the reason is for refusal? 

Could there be a link at my address to my sister?

Who lives on her own place now?

lor..I thought until I read your post the experian credit score was used by all banks but you've stated its not the case

nic: if I apply for a phone contract that will be a hard search, so soon after being rejected for a loan, how long should I wait?

Edited March 28 by linzie

[dx100uk]

just type no need to keep hitting quote...

as has already been said, they use their own criteria.

if a person is not stated as linked to you on your file then no cant hurt you.

not all creditors use every CRA provider, there are only 3 main credit file providers mind, the rest are just 3rd party data sharers.

if you already have revolving credit on your file

there is no need to apply for anything just 'because' you need to show you can handle money.

if you have bank account(s) and a mortgage which you are servicing (paying) then nothing more can improve your score, despite what these 'scam' sites claiml  its all a CON!!

 

[linzie]

I went to clearscore, typed my details and it brought up details of bank accounts opened or upgraded, store cards opened etc and my sisters current address

 

Clearscore showed

1. your eqafax credit file shows you may be associated with a current account opened 2009 and updated on 2024,

2. equafax indicates you have store card opened 2007 and updated 2020,

3.eqafax indicated you may have previous address and shows my sisters current address, 

Etc 

 

So I'm guessing my details are linked to my sister who lived previously with me, what can I do to unlink that 

[AndyOrch]

If you're not financially connected to someone anymore, you can get a notice (sometimes called a notice of disassociation) added to your report to let lenders know. You can do this by raising a dispute with Equifax/ Experian etc.

 

Andy

[fkofilee]

I think the issue here is more taking it higher. 

A credit reference agency has mixed up your details with another member of your family - Would you have guessed that I have had to deal with this for a couple of people in my family before? 

They both ended with a payout of £250 each as a result of this. (Transunion) was the culprit 

I can help you put together a complaint along with relevant forms if you like. But you need to get all 3 of your Credit Files and find out how deep it goes with the mixup. 

[linzie]

Fkofilee, I'd appreciate if you can guide me through what to do.

 

The first step is to request 3 credit files? I need to request from eqafax?

Appreciate your help to put a complaint through once i request all 3 credit files 

[fkofilee]

It is - You can get them online - If you read my guide that I wrote for CAG then youd know where to get them

 

But Still...  

 

Credit Score & Credit Reports at Credit Karma™ UK

WWW.CREDITKARMA.CO.UK

 

ClearScore | Your credit score & report. For free. Forever.

WWW.CLEARSCORE.COM

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Get your free credit score and credit report and be ClearScore sure. Check them as often as you like - it won’t affect your score.

Statutory Credit Report | Experian

WWW.EXPERIAN.CO.UK

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Your statutory credit report shows information Experian holds about you and shares with authorised lenders when they are assessing you for credit.

 

 

Once you get them all - Come back here - We can then discuss further about who you need to contact and what you need to write.

[linzie]

Thanks will start getting the reports 

[lookinforinfo]

I have read that mortgage rates are increasing rather than reducing considering that the Bank rate is expected to come down a little in the next few months. On top of that the financial forecast is looking rather bleak including the Stock market. 

That could mean that your Bank is looking ahead and not wishing you to become over involved at a this time rather than any family involvements. Give it a few months to see if the predicted doom and gloom fails to materialise or you have not been unduly hampered by whatever happened financially to you between now and then. You may well get a yes then though probably best to wait till after the election. Banks are not the bravest bunch in the world.