This is an interesting question. It is undoubtedly the case that most providers will look at applications more favourably when sourced from existing customers and, to be honest, I wouldn't be suprised if some banks couldn't tell the difference (from an underwriting perspective) if the salary was actively being paid into the account each month unless the decion was 'referred' to a manual underwriter. However about 40% of loan applications are declined immediately and of the rest the majority are referred. At this point I believe the sal being paid in would make a difference. The biggest problem is that your score may still be low - even after you are on the electoral register the chances are you will not be accepted by a 'mainstream' loan provider. It's definitely worth a try though - good luck.

Hi, thanks for your reply. I still have a current account with Natwest which I've had for 10 years. Would it be ok to call that my main current account on loan applications even though I pay my salary into a Citibank account? Or would it be worthwhile to pay my salary into the NatWest account again so that it is my main bank account. Would this give me a few more points?

I've now got myself on to the electoral roll although it won't take effect until 1 September so I will wait before applying until then.

Thanks

Oh dear! You are a tenant (knock a lot off your credit score for that); you've moved house frequently (knock more points off) and you've switched your current account recently (yup, more off). Also you appear to be credit averse (you've guessed it, that lowers your score also). If, as you suspect, you are off the electoral register then your score plummets. To be honest I'm amazed your credit profile is as good as 'fair'. Credit scoring is widely used by the providers and is looking to identify 'stability' and 'propensity to repay' and unfortunately you don't appear to have the characteristics sought by the loan providers. Getting on the electoral register is a smart first move. If you haven't already done so use our Smart Search in the loans channel to give you an indication of which provider you can apply to.

Anybody? Any advice?

Hello

I'm looking to apply for a £15K loan. My credit rating is fair and I believe the only reason it is not higher is because I've moved house a lot (I'm renting). I applied for a credit card this year and got declined. Before I tried to apply with someone else I obtained my credit report from the 3 main agencies. Everything was correct and it showed that I've never defaulted on a payment and that I've settled some of my accounts.

I don't believe that I'm on the electoral roll now I've moved, once again, so I've sent the form off to the council yesterday. I would really like to boost my credit rating to Good, as I should be able to get much lower rates of interest, will being on the electoral roll boost me to good?

Is there anything else I can do to try and boost my credit rating? I own 3 credit cards which are all paid off but still open. I don't use an overdraft and I have no loans.

My other question is that when I apply for the loan I'm not sure what to put as my main bank account. I banked with Natwest for over 10 years, but this year I opened a citibank account in order to benefit from a higher interest rate paid. So I now use the citibank as my main bank account (my salary gets paid into it) but I do still have my Natwest bank account open, although with nil balance at the moment. I think my credit rating would improve if I could say I'd been with my bank for more than 10 years ie putting Natwest down, but will they know it's not my main account anymore? Could I begin to use it again as well as my citibank account, would that count?

Also, do you think if I approach Natwest they might agree to give me a loan at a good rate, as I'm a long-term customer?

Many thanks for your help