Has anyone been declined for a Career Development Loan?

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Hi. I've applied for a CDL but I know my credit rating is a bit poo. I've heard they're not as strict as for a normal loan but I'd be interested if anyone has been turned down and if they don't mind saying, why.

Thanks.

 

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I didn't get turned down, but in my previous life I worked in retail and we used to offer finance on large items. It was all done through a finance company. It all gets decided on credit ratings, and nobody can ever tell you why it was necessarily good or bad. The only time you might get an answer is if your case was borderline and the computer can't make a decision. In those cases it gets referred to a human underwriter who makes a decision based on the facts.
There are companies that you can write to who can give you details of your credit history so that you can tackle any black areas. I think Equifax or Experian ring a bell.
I'm not completely sure if CDLs work the same way, but it's bound to be similar.

Have you tried phoning the bank and asking why you were turned down?

 

Thanks Johnny. I haven't been turned down, my application is in the pipeline. I'm just trying to assess what my chances might be. I know there's no chance of me getting a normal personal loan so if they judge the CDL on the same criteria then I'm screwed.

 

I think they are more lenient than a normal loan, so you should be OK.

 

Just got my reply this morning. DECLINED. I've sent off to equifax because although I know my credit rating is bad it seems to be worse than it should be. I'm wondering if I've got some bad stuff from family members on my record. We'll see.

 

I got turned down at first by Barclays........dont know why because my credit is good.
Applied with Co-op because apparently they are more relaxed and after a very very long wait i was accepted.

 

I got turned down with Barclays and then I was told by Computeach that if you re-aply 30 days later it would be accepted, I did and it was, so give them a call and see what the situation is.

 

That sounds like a very odd policy!

I'll definitely reapply - the trouble is, every time you apply for something it reduces your credit rating a bit more. I'm going to wait for my credit report from equifax because I'm wondering if somee of my Dad's many bad loans have found their way onto my file.

 

I think they take your recent credit history into account.
If you were overdrawn last week, you might get turned down.
If it was more than three months ago, you might get away with it.

 

I'm afraid that is incorrect Jonny! Being overdrawn does not show up on a credit history report! Some loan companies ask if you have been overdrawn in an attempt to trick you into telling them more info. They give you the impression that they can get all this info from your report! IT's bullsh1t! All they get is a score and thats all! The score is then compared to their acceptance policy...you pass or you fail!

Your credit history contains info on: CCJs, Missed payments, defaults, credit searches and what credit you have past or present. Missed payments are illustrated as a "0" for each month paid on time and a figure above that to indicate how late you were in paying! All of the above is added together to give a Score.

As for family credit associations, you can get them removed from your file, however, you'll also need to get your report from Experian too! My brother has half a ton of CCJs and defaults on his file and they have never affected me or my parents...so this could be another red herring!

Good Luck Baba O'Riley...try other banks as advised.

 

Not sure mate.
What you're saying is completely correct in terms of finance companies checking up on you, but a CDL is autorised by a bank. Not sure if they use the same system, as was mentioned previously, they seem a bit more lenient.
However, I'm not an expert on this and so I'll believe anything that anyone else says.

P.S. Very much liking the new avatar!

 

Don't worry...I'm sure! Didn't like the old avater on Firefox...it was too quick, so apologies to all!

If it's your own then yeah possibly! But any other bank would not have access to your personal account history other then what is on your credit report. Banks use the same credit report and scoring as finance companies...Your own bank will or may combine your track record with your credit score/report.

Being lenient is down to their policies on lending at that particular time! Once upon a time BarclayCard realised that it was turning the majority of applicants due to it's tough policies on credit scores...then in one fell swoop they change their policy and now just about anybody can get a credit card with them!

Another example, 3 years ago I applied for a capital one platinum card, I was turned down but offered some high apr card with a 200 quid limit? I declined and then applied to Egg, they offered me a card with a 4000 grand limit at @ 0% APR for 6 monthes and then 8.9% after that period...strange that?? I got a lovely drum kit from it tho! LOL!!!

So my point is that it is not down to being lenient, its all to do with the policy in place at that particular time. Sometimes they open the floodgates and then they tighten their belts.

 

Of course the bank wins out in the end, as the interest gets paid to them over the two years by whoever, I forget - some education thing. So they're making money. They just need to make sure you can pay up after the two years. Even that's not set in stone, because if you can't, they go after the training provider for it since that's where the money went.
So it's pretty low risk for them. Nice little earner.

I know what you mean about credit cards and stuff mate. When I was a student, I kept applying for a student Barclaycard, which had a really low APR. I kept getting turned down. So I applied for a normal Barclaycard and in the occupation box, I wrote 'student'. And they sent me a student Barclaycard.
Mad.

 

I believe the interest over the 2 years is actually paid buy the Government.

 

See?
And we think they aren't nice people sometimes.
Do you think that Tony would pay off my credit card too?

 

It does seem very odd how they approve people for credit. I was recently declined a savings account with Halifax, yet MM02 were happy to approve me for a new contract phone. I can't work it out, but I would love to know.

 

It all comes down to risk assessment

asking for a credit card has a different set of risks associated with it than getting a contract telephone
the credit scoring is part of this risk assessement, and your actual score means different things to different places, bank A may class a score of x to be bad,whereas bank B may be more lenient and requrie a score of x+y, different services would also involve different scoring requirements

it is an odd system, and its one that goes against the consumers best interests, and deals only in whats good for the financial organisation, ya know, the ones that are holding your money in trust and making money off it, yeah those

and for the record
every time you apply for credit, it doesnt lower your credit raiting, it justs gets noted, and different places will associate this in different ways, some will lower your score with them, others will be uneffected by it
credit rating is a red herring, as its not set in stone, its drawn up dynamically by each financial company your using based on what they feel your credit reports tell them
hope that helps

 

Thanks for all the replies. Postalvote's story seems very odd as when I asked in my local building society if they would do a credit check on me to open a savings account the cashier told me they don't bother as it is only them taking my money and then giving it back. There is no actual credit involved, which I suppose, makes sense.

However, as Phoenix points out, different horses for different courses.

 

I suppose its all down to the policy of the bank/building society...

 

can someone provide me with a list of training companies that support the CDL?, I HAVE been sifting through tons of companies asking them if they are registered to the learning and skills council most of them havent got a clue what im on about!

i even phone up the help line and asked them for a list of training providers but they werent able to do so, they said they havent formulated the list!!! WTF

i would of at least thought with the amount of people out of work today that they government would at least get their F****** act together and provide a list of trainers!

any help in the right direction would be appreciated i am currently looking at 7safe.com in teaching me!¬