Underwiting Departments

[Ruby]

I am scratching my head over this and thought I would vent my frustrations with you guys :hat:

Our teenage daughter has just recently past her driving test and typically has been pestering her parents to help her buy a car. :car:

We are financially 'comfortable' and therefore we do not rely on credit cards or loans. When my hubby's credit report was checked the only things that showed up were our mortgage (up to date) and a current account (no over draft facility as we don't need one), My hubby also has a 'settled account' on file. Apart from that there is nothing else. Hubby runs his own company so the mobile phone contract is in the company name.

Our finance was declined for a car!

Am I missing something here??! The company did not even ask for my husbands income as they only go by what the credit reference agency has on record.

I must be getting REALLY OLD as this does not make any sense to me whatsoever.

Can anyone shed any light on this?

Perhaps someone who has worked in underwriting can explain a really odd state of affairs........

[Amethyst]

Re: Underwiting Departments

Sometimes your credit record can be TOO clean .... annoyingly. Otherwise have you applied to a few different companies ( which might leave the search markers on your files) - any odd financial associations - is he linked to you/your daughter (I ended up linked to my Dad when I was 18) ?

[Ruby]

Re: Underwiting Departments

Only the odd 'soft search' done in the past 12 months and no other financial associations.

Hubby's credit score is relatively low, but we put that down to not having or needing any credit.

As you say, its annoying, especially as we can very comfortably afford the repayments.

[R0b]

Re: Underwiting Departments

Definitely annoying, but you can always request a second review with the lender that rejected you. Usually submitting credit reports will help as then someone will be looking at it personally rather than a computerised system.

Alternatively you could also look at the brokers Zuto and you get a fast response (30 mins for me) albeit your interest rates might be higher than normal and a couple of conditions attached like not older than a certain age. I did get accepted by these but instead got a bank loan and that could be another option? Sometimes going in personally will get you accepted than doing things online.

Of course if your looking specifically for finance on hire purchase then a loan rules that option out!

[Ruby]

Re: Underwiting Departments

Thank for that Rob. I am concerned that after today there will be one or two hard searches on the credit file which may make things more tricky. Is it just me who thinks its weird that these companies do not even ask for the customer's income?

[Amethyst]

Re: Underwiting Departments

I suppose the intitial credit search says whether they would be able to go any further with your application. No point finding out you earn £50k a year then checking your credit file to find 20 CCJS.

As Rob says a face to face at the bank may be better - and a unsecured loan would be better than HP (IMO) anyway.

[Ruby]

Re: Underwiting Departments

I agree and understand Ame, but there are no defaults let alone CCJ's, etc in this case.

I live with two teenagers and true of their age group they think they know it all. The older you get the more you realise how little you do know. I am in my forties and feel I know precious little, apart from the fact that we live in a weird world that makes no sense lol

[R0b]

Re: Underwiting Departments

Depends which way you look at it, HP may be better suited as you will have a right to hand the goods back after paying at least 50% if you somehow become in financial difficulty.

Unfortunately when you get rejected nobody really knows except for the people who work for the lender and understand their criteria, which of course they never divulge! There are always rumours which fly about as to why you might get rejected, some lenders don't like a squeaky clean borrower as they might like to recover additional fees such as missed payments etc. Another one I've heard is that it would also depend on your postcode area or even your address. If there has been bad history previously at that address or postcode area then lenders might be unlikely to accept your application. Whether these are true or not I do not know but I doubt we will ever know.