loan question, loan was declined , why ?

[goldenbolls]

my wife is working, she has 3 credit cards ( mastercard and visa,s ) and 3 overdrafts of up to £2000. her job is secure. she applied for a loan today from nationwide for 7000. they refused her.

she has no ccj,s or no adverse credit history.

why have they refused her? they say talk to expirian ?

[sara3]

so get an Experian report.. none of us will know what's on her credit history.

[factor-fiction]

Probably the combined credit limit of all her cards and loans is considered high enough in cases she decides to 'max out' on everything

[factor-fiction]

^ in case...

[mxyzptlk]

Obviously something in her credit scoring is against her, so agree with the Experian suggestion.
Maybe the credit cards are maxed and with 3 overdrafts they feel another loan would be stretching her.

[factor-fiction]

Her cards don't have to be maxed out all ready- they will look at the total potential credit limits and decide whether they should add to that limitt or not

[hc4361]

factor30 is right.
She should actively cancel any credit card she no longer uses, the same with the overdrafts.

[Bigfellah]

In addition to "factor30" and "hc4361"'s suggestions do go the Experian route as well. You can sign up for a 30 day free trial (Credit Card details required) during which time you can get your Credit Report and also Credit Score. If there are any items mentioned which are incorrect or there is an association with a previous occupant of your property which is no longer true you can have them corrected/removed.

Having seen all this then if you do not want to continue monitoring your details, then cancel before the 30 day deadline comes up otherwise you will be hit for a £60 annual fee for membership.

There are also a couple of other Credit Reference agencies - Equifax & Callcredit Check - which you could also visit to clarify things.

[goldenbolls]

she has not maxed any of her cards out, as a matter of fact she doesnt really even use them,,, she applied for credit from currys about 3 months ago and they gave her 2,500 worth of electrical equipment but we decided against it and went 2 days later to cancel it, think we just wanted to buy something nice for the house then but on hindsight credit is too handy though she does want this loan .

[pretty_snowdrop]

If they have told her to talk to Experian then they have found adverse information on her file.The adverse info doesn't have to be in her name, it could be anyone she has had a financial relationship within the last 6 years. The quickest way is to call Experian on 0844 481 8000 ( costs £2.50 i think) or as others have suggested get a free credit trial online. If she was refused because she was financially over committed or any other reason they should have explained that to her.

[craft1948]

I once applied for a loan and was turned down because I had no credit history.........how do you get a history if no-one will give you credit?

[Twenty20]

Why would she need 3 credit cards? And 3 overdrafts as well? It's not really surprising that she was turned down for even more credit. You haven't said why she wants this new line of credit.

[goldenbolls]

twenty, its personal, you do not need to know why she needs the laon only that she was turned down for it, why she needs it has no significance to you or the loan company.

[emmie]

experien will be the people to speak to, it will also show if there are any debts that are not hers, in other words some nasty little scammer has been playing fast and loose with her details. And sadly it goes on all the time, and people don't usually know about it until they get turned down for loans, or the banks and police come knocking. Hope you get it sorted.

[emeritus]

Its possibly to do with Credit footprints. You say your wife applied for a loan which was agreed but then didnt take it up. The company involved would have asked for a credit check on your wife at the time and this will have left a footprint on her credit record. People who have a few footprints on their credit history can cause their credit rating to drop. If you google Credit Footprints it will explain better than I can. Hope this helps

[goldenbolls]

thanks guys