personal loans and credit check agencies


A

Abso

I phoned up to apply for a personal loan today, not because I want one
but because someone suggested it as a good way to find out if you have
a good or bad credit rating.

I was quoted 6.1% APR at the start of the call, then full details were
taken and after this the advisor came back and said they would offer a
loan at 7.7% APR. When I questioned this they told me this was as a
result of my credit score based on what I had told them and what
Equifax had on record.

Now, from the details I gave them my income would be comfortably more
than my expenses, so I can't see there being any issue there, so that
only leaves the credit reference agency's info as a reason for the APR
increasing. Alternatively, is this simply salesmanship in action with
them taking the chance to bounce the APR up a bit as I commented that
6.1% was better than I was expecting?

Ok, the main point of the post, I've visited Equifax's website and
requested a copy of the info they hold on my in line with the DPA, but
do I need to do the same with Experian, or do they share info to the
extent that it's going to be the same data?

--
Abso [at] ukrm [dot] net - Ignore header email address

"Give a man a fish and you feed him for a day; give him a
freshly-charged electric eel and chances are he won't bother you for
anything ever again"
 
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P

Phil Deane

Abso said:
I phoned up to apply for a personal loan today, not because I want one
but because someone suggested it as a good way to find out if you have
a good or bad credit rating.
Strange idea, as each compnay will have a different scorecard, so an
acceptable one for Bank A is a decline for Bank B, and a high accept for
Bank C.
I was quoted 6.1% APR at the start of the call, then full details were
taken and after this the advisor came back and said they would offer a
loan at 7.7% APR. When I questioned this they told me this was as a
result of my credit score based on what I had told them and what
Equifax had on record.

Now, from the details I gave them my income would be comfortably more
than my expenses, so I can't see there being any issue there, so that
only leaves the credit reference agency's info as a reason for the APR
increasing. Alternatively, is this simply salesmanship in action with
them taking the chance to bounce the APR up a bit as I commented that
6.1% was better than I was expecting?
Most normal people in lending institutions have no power over that.
Ok, the main point of the post, I've visited Equifax's website and
requested a copy of the info they hold on my in line with the DPA, but
do I need to do the same with Experian, or do they share info to the
extent that it's going to be the same data?

Ever think that you just didn't have enough points to make the grade for the
6.1% loan?

A credit check and a credit score are different things. Credit score uses
more than the just the credit check to gets its overall score. It uses the
rest of the info as well.

Points I would guess are allocated for everything barr your name and sex.
Some will be plus points some will be minus. When they add it up, you
didn't have a high enough score, therefore were offered an alternate rate.
Your credit report could be clean. Someone with lots of debt but who has
made all the payments will have a higher score than someone with none, as
it is about proving a track record, and the person with lots of debt is a
good payer, the person without in an unknown quantity.

If it is the scorecard that got you (I have no reason to assume otherwise)
then it is an internal thing. The credit check may be clear, but the
internal rules may have bumped you from 6.1% to 7.7%. And no matter how
much you ask they will not tell you the scorecard, or what points you got

Using the credit reference agency line is a good way to get you off the
phone(and the standrad decline/revisionary line for most lenders) because
you then need to go to equifax/Experian to look for answers, and have
calmed down before you call back.

If they said you didn't have enough points, you would have asked about the
scorecard, and the operator does not know that. They just phone/enter your
details to a decision system, and the answer pops up.
 
T

Tim

And no matter how much you ask they will
not tell you the scorecard, or what points you got

If they said you didn't have enough points, you would have asked about the
scorecard, and the operator does not know that. They just phone/enter your
details to a decision system, and the answer pops up.
Don't you have a right to be considered *manually*, if the lender uses an
automated (point-scoring) system??
 
P

Phil Deane

Tim said:
Don't you have a right to be considered *manually*, if the lender uses an
automated (point-scoring) system??
No. If the automatic decision referrs it *then* it will be looked at
manually.

If you caused a stink it probably would get looked at by someone higher than
the operator(maybe a team leader, maybe the underwriters, but I would
imagine the Underwriters will stand by the original decision, unless
something that the "system" couldn't assess comes into play. And as a
general rule, anything the system can't assess is out of bounds.
 
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A

Abso

Ever think that you just didn't have enough points to make the grade
for the 6.1% loan?
In my arrogance, no I didn't.
A credit check and a credit score are different things. Credit score
uses more than the just the credit check to gets its overall score.
It uses the rest of the info as well.

Points I would guess are allocated for everything barr your name and
sex. Some will be plus points some will be minus. When they add it
up, you didn't have a high enough score, therefore were offered an
alternate rate. Your credit report could be clean. Someone with lots
of debt but who has made all the payments will have a higher score
than someone with none, as it is about proving a track record, and
the person with lots of debt is a good payer, the person without in
an unknown quantity.
I hadn't looked at it like that, I just assumed that the more a person
borrowed (or needed to borrow), the worse their score became.
If it is the scorecard that got you (I have no reason to assume
otherwise) then it is an internal thing. The credit check may be
clear, but the internal rules may have bumped you from 6.1% to 7.7%.
And no matter how much you ask they will not tell you the scorecard,
or what points you got
Yes, it was a fairly unhelpful brush off that I got, just "your
circumstances and the information you've given us".
Using the credit reference agency line is a good way to get you off
the phone(and the standrad decline/revisionary line for most lenders)
because you then need to go to equifax/Experian to look for answers,
and have calmed down before you call back.

If they said you didn't have enough points, you would have asked
about the scorecard, and the operator does not know that. They just
phone/enter your details to a decision system, and the answer pops up.
Fairy nuff. I'm glad I didn't actually need the loan as I'm sure I
would've been even more argumentative over it, wanting them to justify
why someone as *perfect* as me wasn't getting the best rate.

--
Abso [at] ukrm [dot] net - Ignore header email address

The uk.people.consumers.ebay FAQ is at www.upce.org.uk

Shin: a device for finding furniture in the dark.
 
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