Credit ratings

Unfortunately, the credit referral agency used e.g. Equifax, may not have the correct information for you.

Ask why your application was refused and which agency was used. You can then write to them and ask for more details. Pay your £2.50 and tell them you're invoking your right under the Data Protection Act to be supplied with all the information they have on you.

When I applied for my first mortgage, it dragged on and on because Equifax insisted I wasn't on the Electoral Roll, despite the fact I had a hard-copy of my Electoral Roll entry from Stockport Council.

I simply photocopied it, sent it to Equifax amd reminded them that they were legally obliged to correct their information. Needless to say, the mortgage then progressed.

 

It's not uncommon for people to have adverse information come up on their address when a bank files a credit scoring request as a result of the previous occupant at an address having run up debts/CCJ's. I've seen it on a few occasions working for a bank, when trying to get accounts opened, in nearly all occasions these applications have been continued after a quick phone call from the bank manager who's going to be dealing with the customer to ensure that all's as it seems. Changing your address doesn't help much either, I guess the lending companies are looking for stability and constant changes of address aren't exactly proof of this, even if there are mitigating circumstances.

It's definitely worth getting the reasoning behind anything being refused. That way, if it's anything that you have/have not done yourself you at least know what the issue is, and if it's someone elses doing, can get the record set straight to your benefit. It's bad from both sides because the lending companies (where the bad info. is not the customers fault) are seen to be the bad guy for refusing when all they're doing is complying with their legal obligations within FSA rulings and are giving the customer a negative outlook as a result of this.

I'm not sure how it works for previous tenants at an address, but domfjbrown and I share a house here in Exeter, and have seen letters addressed to tenants who left 4-5 years ago relating to debts they've run up... surely all these systems should be working on the persons name rather than an address? I know some organisations do check once they've identified a bad history at an address whether it's actually to do with the current resident/applicant and then proceed accordingly, but it's highly possible others don't.

 

bob- no, I'm not a rate tart. I pay off my cc balance in full every month because I don't spend what I don't have. I have been with my cc company for 4.5 years. I have had my bank account(s) with the same bank for 6 years.

I'll look into experian and equifax, because I do want to know what's going on. So far it's not been a problem, but it could become one.

 

update here - I went to the estate agent last night, all he wanted was a reference from my employer to confirm that I work there...I had to pay a 150 admin fee...but they are going to steam clean all the carpets and put a lick of paint on the bedroom walls...so, I've now got a house! will move in in about 10 days time...it's only about 20 doors away from my ex-girlfriend...so, I guess she'll be popping round for the odd cuppa...

 

FWIW I work in the data/credit industry .

I would advise you to request a copy of your credit history from whichever company carries out the checks for the organisations that turned you down.

Typically these are Experian and Equifax as someone mentioned.

I doubt your problems are caused by anything other than a simple mix up. However it is not correct to say that adress details affect new occupiers as the matching of records is done at Title Inital Surname level, parents did indeed affect your rating and vice versa bit not any more as the rules have changed and now by law all scoring is carried out against the individual however local factors like area etc can and do have an influence.

The credit scoring industry is looking for a history of good payments with other companies and so if you are a new prospect with no such history they have very little to measure you by, this can unfortunately lead to refusal. I found this to my cost as I never borrow money (mortgage excepted) and was refused a card because of exactly this reason.

If you have equity in property this helps as does a long standing, well run bank account.

Hearsay information in this regard is usually completely wrong so I'd start by looking for a geniune problem with the reference agencies and if you history is clean approach your current bank for a card, they may be the best choice in the short term.

 

You are likely to have failed on credit scoring alone with no detrimental credit information being used at all. It's done on the basis of points allocated for each answer with a married man with children who has been at both his address and in his job for more than three years scoring highly but with a single man with new address and new job just scoring a string of zeros.

 

It can't be too focussed on actual address - I applied for a loan to buy a new car over the weekend and was accepted no problem (I live in rented accomodation and have moved house 5 times in the last 2.5 years! I'm not married, have no kids etc etc). I have worked to try and build a decent credit rating over that time though - starting with credit cards using low limits, increasing this over time, buying things on interest free credit etc. Being registered to vote at my current address also helps IMHO.