Simply put, We would love to agree all applications that we get, but we can’t help everybody even though we’d like to.
Here are 5 main reasons why we decline applications:
If you don’t put information in correctly then we might not be able to link your details to your credit file, and therefore we can’t see your credit information to make a decision. This includes your name, address, date of birth etc.
So be careful if you’re using a phone with autofill, because that can often put your information in the wrong boxes.
Make sure if you’ve lived at your current address for less than 4 months that you let us know in the application so that we can get the previous address.
We look at how you’re managing your existing credit from your credit file.
If you look like you’re struggling to pay your existing credit we won’t be able to lend to you because we can’t evidence that you can afford another loan on top of the ones you already have.
We do affordability calculations as well, and these are based upon how much credit you already have, how much your monthly out goings are and this includes defaults too – they are taken into consideration. This is why sometimes we ask for bank statements.
You pay rent, mortgage, gas, electricity, living costs – if you don’t pass our affordability calculation we don’t see that you have enough money left over to pay for another loan.
We do see a lot of misreporting on your files, we’ve done some surveys with customers and it’s amazing how many people have incorrect information on their credit files, so do check your credit files regularly to see what’s on there and if there’s anything wrong – dispute it.
– it’s Free
– You can check your credit file
– You can dispute it in a couple of clicks.
Frustratingly we are not able to tell you what we have seen on your credit file that has made us decline your loan. I know that’s difficult when you can’t see why but we are bound by the Data Protection Act, which is why it’s so important for you to check your credit file.
Do you think we’re wrong in our decision?
Of course you can appeal it. Just send us an email and explain why your appealing – give us extra information that you think is relevant to your application that would help explain why you can afford the loan.
We only see your application and your data – we don’t see your situation and what’s happening and what you do or don’t pay for so give us that information.
We also have a company policy that says if you have a loan with us already we will only consider another loan if you’ve paid off a 2/3 of the existing loans you’ve got.
If you’re looking to have another loan, brilliant. Just check that you’ve paid off a 2/3 of it already.
Just to note, if it’s your second or third loan we will be asking for more information.
We may not have asked for bank statements for your first loan, but if this is your second or third this is a higher amount on top of what we’re already lending to you, so we have to do some more checks. That will be why we’re asking you for bank statements, just to check your affordability and that you’re managing your finances okay at the moment.