Credit ratings

I know some people here work in financial services, so wondered if anyone can tell me about credit ratings.

I got refused a bank account (a 3% interest current account) by the halifax a few months ago, which I didn't think much of. I've always been careful with money. Never overdrawn, never not paid off my credit card balance in full.

Then a few days ago I was refused a debenhams store card also. I have heard that store cards are amongst the easiest credit to obtain, and yet again I was refused.

However, recently I was accepted for a mortgage of around 3.5x earnings.

What's going on? Why am I being refused credit and being refused a bank account? Could it be something that a previous occupant of my flat or house did is causing that address to be flagged up? Or is it just that I've already got a reputation for not making money for credit companies? That doesn't explain the bank account though...

 

Have you just moved house? I got refused on a couple of cards just after I moved to a new house despite having no trouble before. This wasn't a bad rating on the new house just that I hadn't been living there that long.

 

This is my mums favourite subject. You need to get in touch with Experian and Equafax to and get a copy of your credit history, it costs about £2 each. It could well be its because of a previous tentant, if this is the case you need to get it removed.

I had my parents on my credit history filles so I wrote to them to ask them to remove it so and they did.

 

I have moved house twice recently. First from my parent's place to my flat, which was temporary whilst working my probationary period at new job and looking for a house, which I've now moved into.

Could the debenhams card have been because I said I'd lived there less than a week, and the previous address was only 9 months?

 

Quite likely. They're all done on points scoring. We had problems just after we moved because we weren't on the electoral roll. Are you still on the roll at your parents, or at your new address. It's important you get on that list as soon as possible. There are elections coming don't you know

 

yeah, its a bit of a sham...I've just spilt up with my girlfriend and I have to find a new place to live - which I have, a rented house via an estate agent...
but, a - I may not be allowed to get this place as my credit rating isn't that good despite earning a half decent wage and having not real debt, apart from credit card and overdraft, I had asked my bank for a small loan to help me pay the deposit etc - but they refused, I've banked with them for about 9 years - everything there has been fine (aprt from me being over my overdraft a couple of times) - however, I did get a credit card / overdraft written off whilst at Uni as I went to germany for a years placement, I came back with the full intention of paying them back, but because there was no contact for a year they wrote it all off (understandably, I guess...)

what kind of credit checks do estate agents do..?? - just that I've got a meeting tonight...I'll be right up sh*t creek if they turn me down tho...even tho I have the means to pay etc...
has anyone had experience of this..?

 

I was told by a Financial Adviser a couple of years ago that if any applicant has moved house more than once in 3 years, they'd assumed he/she was running away from something/someone and will be treated as a bad risk. Not sure how many others follow the same thinking.

 

That's really screwed up if that's true.

 

yeah, what about students..??? - I'm sure the must have some kind of provision for that...as they'd normally stay in a student gaff for a year...

 

Mortgage advisors will find you a mortgage regardless of circumstances, the credit checks they run are basically a print out of your credit status, from one of the credit reference agencies

 

As has been said, it's purely a points system. Check with Experian and Equifax to get copies of your credit rating, and ensure they correct any errors.

Never buy anything with a store card, they have a truly terrible APR and are an utter con.

-- Ian

 

cheers - I assume you were answering my question...but I'm only going to be renting this place (as an interim measure) - would the same apply there..?
just that if my own bank turns me down for a loan...

 

It would depend I guess. It would be worth your while finding out what your file says. It's easy enough to do I believe

 

ian - I had no intention of incurring any interest on the storecard. It was going to get me 20% off the £300 of bedding I was buying at the time was the only reason I applied.

Credit companies probably don't like me because I always pay off the balance before any interest is incurred.

 

IME, that shouldn't be a problem, not with credit card companies anyway. I've always found on the occassions when I've nearly reached the credit limit on my credit card and pay it all off before the interest starts clocking up, that's what the card company usually uses as their cue to increase your existing credit limit.

 

Debanhams used to give you the discount for 1 day even if your credit application was turned down,used it to my advantages when i bought my telly,
Mr cat ,all the placs ive rented have required a month rent and maybe a bit more as deposit, plus a months rent before moving in,also some places will try and charge you an admin fee for the credit check,my present landlord wanted £75,but i managed to negogiate it down to £50 when i pointed out i could get it done for a couple of quid.something else to be aware of is some places will insist you pay the rent on a certain date,so if you move in half way through there month youll end up paying 6 weeks rent

 

Isaac
Are you a 'rate tart'? Do you swap cards to benefit from zero interest? If so this may be the reason, they're beginning to wise up on people who are card savvy and denying them credit.

Bob

 

The amount of time you've been with your current employer also counts towards or against your credit score rating too. 6 months or less of time with your current employer and it counts against I believe. Also if you're not a member of permanent staff, this can count against you too, which of course is completely rediculous for people who can and do earn a decent wedge by doing contract work.

 

About 15 years ago, I filled in a storecard application form (there was some deal offering an extra 10% off or similar). On the form I told the complete truth. Unemployed, living with parents, three changes of address in the last year (I had just finished college), new bank account, credit card bills amounting to a couple of grand.
I was given an immediate thumbs up & a £2K limit. Which I could spend that very day. How scary is that!!??
Ever since i have thought credit ratings are a joke. Nevertheless, I've checked my rating out a couple of times - there are (were?) a couple of agencies you could check with & they would rport back to you with their findings - cost £1 a time IIRC.

 

Have you googled your details (name, postcode, address and other data)?
You may well find something linked to you that is holding you back, alos try as many other search engines as you can think of. Try this in addition to the two big credit referal companies already mentioned.