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  • FIRST POST
    • onthego
    • By onthego 7th Jan 17, 10:11 AM
    • 15Posts
    • 6Thanks
    onthego
    How to be a stable nomad
    • #1
    • 7th Jan 17, 10:11 AM
    How to be a stable nomad 7th Jan 17 at 10:11 AM
    I just joined the credit club here which is a great facility to have, thanks.

    My score is 868 which classes as fair. It's pretty frustrating as my report is covered in green smilies: no missed payments, low debt to income ratio and low credit utilisation (one credit card <£1k credit paid fully each month), none or very few recent credit applications, employed status. No sad faces, just two flat ones: residential status i.e. I'm not a homeowner, and account stability: "The average length of your financial relationships is less than six years, this isn’t just bank accounts, mortgages, loans and credit cards, it can include utilities, mobile phone contracts, broadband and more"



    No kidding. I'm not afraid of change, so I've switched banks for better deals occasionally, I've had loads of different jobs, I've always rented and have moved house about 30 times, generally to fit in with jobs or relationships, sometimes with bills in my name or not, currently not, I just switched my mobile phone to giffgaff at the end of my contract. I always get on the electoral roll but it takes a while, I'm on there at the moment.



    I feel like in the old days I could have gone and talked to a bank manager, shown them 15 years worth of public sector payslips from around the country, over 30k of savings built slowly and steadily, and my fully paid off previous student loan and career development loan, and they'd agree I'm a safe bet.
    But as it is, it seems I've no way to improve my score, except by buying a house and living there, but I would like to borrow some money to do that and its so frustrating that I will get refused or offered lower rates than if I'd lived in the same house all my life. I only really need a £5-10k loan rather than a mortgage thanks to financial help from my family, but I'm scared of applying, getting rejected and thus making my score worse. My current work is a new zero hours contract that I'm working full-time on (~£35k pa), I know a zero hours contract won't get me a mortgage, I don't know if it will affect loans too? I don't want to ask family to guarantor.



    Is this just the unavoidable cost of being a modern nomad or is there anything I can do?
    Are there any lenders that don't care about address stability/zero hours contracts or that might listen to me if I contact them with my background info? My main bank and credit card are internet only.



    All thoughts welcome, thank you!
Page 1
    • zx81
    • By zx81 7th Jan 17, 10:17 AM
    • 12,011 Posts
    • 12,154 Thanks
    zx81
    • #2
    • 7th Jan 17, 10:17 AM
    • #2
    • 7th Jan 17, 10:17 AM
    Your score means less than nothing. Ignore it with a vengeance.

    Have you actually applied and been rejected? Or are you just afraid of applying?
    • onthego
    • By onthego 7th Jan 17, 10:33 AM
    • 15 Posts
    • 6 Thanks
    onthego
    • #3
    • 7th Jan 17, 10:33 AM
    • #3
    • 7th Jan 17, 10:33 AM
    In 2012 I researched loans to buy a car for work, the best APR was from Zopa, and their website indicated I would qualify for a good rate, but when I applied they turned me down. It was a big shock as I needed the car for my new job. So I phoned my own bank who knew I had a good income and savings and history, but they offered me I think around double the APR that their online calculator had indicated I would get. I hate paying interest so I scraped through shuffling money around credit cards instead. I didn't want to try anywhere else and make my score worse and it has put me off trying again as nothing's really changed that I think would make a difference.
    • zx81
    • By zx81 7th Jan 17, 10:37 AM
    • 12,011 Posts
    • 12,154 Thanks
    zx81
    • #4
    • 7th Jan 17, 10:37 AM
    • #4
    • 7th Jan 17, 10:37 AM
    I think after 5 years, you could probably risk a further application. One search will make no difference.

    Remember to ignore that score...
    • onthego
    • By onthego 7th Jan 17, 10:52 AM
    • 15 Posts
    • 6 Thanks
    onthego
    • #5
    • 7th Jan 17, 10:52 AM
    • #5
    • 7th Jan 17, 10:52 AM
    Do you think one search is definitely no problem? I was worried because my fallback is to turn to credit cards again and I don't want to get worse APRs there than I would have done otherwise. Even for one search its so hard to know where is best to try.
    I wish you could compare online like you can with insurance etc, and get the real answers, without getting penalised for it. The eligibility indications on the credit club here are more helpful than anything else I've seen, but nothing there is 100% for me.
    • zx81
    • By zx81 7th Jan 17, 10:54 AM
    • 12,011 Posts
    • 12,154 Thanks
    zx81
    • #6
    • 7th Jan 17, 10:54 AM
    • #6
    • 7th Jan 17, 10:54 AM
    Start with your own bank again. One search is nothing - I'd stop at two though if unsuccessful and retry in a three or four months.
    • onthego
    • By onthego 7th Jan 17, 11:10 AM
    • 15 Posts
    • 6 Thanks
    onthego
    • #7
    • 7th Jan 17, 11:10 AM
    • #7
    • 7th Jan 17, 11:10 AM
    Thank you so much for your advice, it is much appreciated.
    • onthego
    • By onthego 26th Jan 17, 10:33 PM
    • 15 Posts
    • 6 Thanks
    onthego
    • #8
    • 26th Jan 17, 10:33 PM
    • #8
    • 26th Jan 17, 10:33 PM
    An update - I phoned my bank to discuss and they said I need income to get a mortgage or loan and my zero hours contract won't count. Tben I discovered one of the credit card money transfers on the credit club forum had changed to 100% chance of 3 years interest free credit so I applied and they are giving me the money I need no problem. It seems so back to front that my bank who know me won't trust me, even though I was trying to get a loan where I'd pay them interest, but these other strangers want to give me free money for no interest! I want to change banks on principle, but I'm holding off for now in case I need any more credit as its my only longstanding financial relationship. Hopefully with this credit card I can buy a house, at which point my credit rating may at last pick up, right when I don't need it! What a weird world.
    • robber2
    • By robber2 27th Jan 17, 12:43 AM
    • 236 Posts
    • 178 Thanks
    robber2
    • #9
    • 27th Jan 17, 12:43 AM
    • #9
    • 27th Jan 17, 12:43 AM
    . Hopefully with this credit card I can buy a house,.......
    Originally posted by onthego

    Good luck with that plan.

    Rob
    • nic_c
    • By nic_c 27th Jan 17, 9:50 AM
    • 788 Posts
    • 491 Thanks
    nic_c
    An update - I phoned my bank to discuss and they said I need income to get a mortgage or loan and my zero hours contract won't count. Tben I discovered one of the credit card money transfers on the credit club forum had changed to 100% chance of 3 years interest free credit so I applied and they are giving me the money I need no problem. It seems so back to front that my bank who know me won't trust me, even though I was trying to get a loan where I'd pay them interest, but these other strangers want to give me free money for no interest!
    Originally posted by onthego
    Different banks have different criteria for mortgages/loans. Some will accept ZHC if you can show sufficient average earnings over last 2 years, some will only consider a percentage of it, others won't consider any
    I want to change banks on principle, but I'm holding off for now in case I need any more credit as its my only longstanding financial relationship. Hopefully with this credit card I can buy a house, at which point my credit rating may at last pick up, right when I don't need it! What a weird world.
    Unless you are wanting to use an automated bank switching system (e.g. for the reward) there is nothing to stop you doing a manual switch and just keep the old account open. Get a list of regular payments, swap you income and those to the new account and leave sufficient in your old account until you are sure everything has moved across, then just leave a nominal sum in and transfer a £1 across every six months to keep it active.

    It might not be your average age of credit that got you turned down, could be that you moved a lot, could be if your income has varied then different applications have shown different money amounts, or maybe an old active account is still attached to an old address. Maybe even misreporting by utility companies. My neighbour had a problem with her Utilities as although she had a DD set up the date didn't coincide with when the months costs were added to the account so it was always reported as late payments. Can't remember how she found out but I remember she was quite livid as she'd agreed to the date the company suggested and always paid. Unfortunately they often don't tell you why you have been rejected and it could be for a different reason than you may think.
    • onthego
    • By onthego 20th Apr 17, 8:55 PM
    • 15 Posts
    • 6 Thanks
    onthego
    Good luck with that plan.

    Rob
    Originally posted by robber2

    My house purchase has now completed. No mortgage as I couldn't get one anywhere, just a 0% credit card money transfer for the money I needed. Mad world innit.
    • binaryuniverse
    • By binaryuniverse 20th Apr 17, 11:09 PM
    • 301 Posts
    • 126 Thanks
    binaryuniverse
    I'm wondering if the reason you didn't get a mortgage is because you didn't actually need it (by the sounds of it).

    Even so, just going back to the start of the thread, the credit score is not something you need to be overly concerned about. At best it's a general indicator as to how well you've been managing your accounts. But Experian give me a low 450ish and I've recently been accepted for 2 credit cards (both Tesco), and opened 5 new bank accounts (albeit none of these with overdraft facilities, as I didn't want them. I've got an £800 OD on my main account, and I've used it once in the last 16 months since it was opened). Equifax and Callcredit also give me a low score.
    I've moved house 8 times in 10 years. Which again, affects my 'score', and some lenders might get jitters about it. But I don't think that's a huge thing, these days. So many people aren't homeowners, and moving about is becoming a norm for a lot of people.

    However, I do agree that things are left to automation far too readily, in this day and age. I remember popping in to my HSBC, in 2008, to apply for a loan. The guy has a look at my account, what I had coming and out, could see I could afford it, and approved me. If I did it online, I'd probably have been rejected for some nonsense little reason.
    • onthego
    • By onthego 21st Apr 17, 12:27 PM
    • 15 Posts
    • 6 Thanks
    onthego
    I would love to have a mortgage. Or a loan. Then I know what my payments will be in the long term. I had to get a substantial five figure number from family and credit cards, the credit is interest free for now but who knows what will happen after the offer runs out, hopefully I will get some reasonable credit from somewhere.
    • phillw
    • By phillw 21st Apr 17, 1:58 PM
    • 588 Posts
    • 252 Thanks
    phillw
    "The average length of your financial relationships is less than six years, this isn’t just bank accounts, mortgages, loans and credit cards, it can include utilities, mobile phone contracts, broadband and more"
    Originally posted by onthego
    I have that and I get a score of 999 and a hit rate of 98%. You will be seen as a higher risk because you don't own a house, it acts as collateral even for unsecured debt.

    Have you spoken to a specialist mortgage broker? If you have evidence of an income and you are only borrowing a small amount of money then they can probably find something. It might not be very competitive and you will have to pay them a fee, but it's worth it to get past "computer says no". Some lenders have minimum lends for mortgages that are more than what you say you need to borrow, you may have to borrow more. A good adviser will know exactly what to do.
    Last edited by phillw; 21-04-2017 at 2:10 PM.
    • Tarambor
    • By Tarambor 21st Apr 17, 4:38 PM
    • 767 Posts
    • 486 Thanks
    Tarambor
    An update - I phoned my bank to discuss and they said I need income to get a mortgage or loan and my zero hours contract won't count.

    It seems so back to front that my bank who know me won't trust me, even though I was trying to get a loan where I'd pay them interest, but these other strangers want to give me free money for no interest!
    Originally posted by onthego
    First of all there's a difference between a few thousand quid of lending and £100,000 or more.

    Its not necessarily that they won't trust you but that because of EU legislation they have to apply tests which you may not pass, particularly an affordability test which is based on a mortgage interest around 3-4% higher than the low rates being offered currently so just because you could afford one now doesn't mean that at say 6% you would be classed as being able to.

    As for the zero hours contract, talk to a mortgage broker who will have access to mortgages more likely to accept you.

    Hopefully with this credit card I can buy a house
    Not happening. In fact it could harm your application if you try to use it to pay the deposit.
    • phillw
    • By phillw 23rd Apr 17, 9:56 AM
    • 588 Posts
    • 252 Thanks
    phillw
    Not happening. In fact it could harm your application if you try to use it to pay the deposit.
    Originally posted by Tarambor
    He says he's already completed. He doesn't need a deposit as he doesn't have a mortgage.

    I've heard of people switching some of their mortgage onto credit cards, but never buying a house with cash & money transferred from a credit card. I'm kinda jealous. Although with mortgage rates so low it would need to be 0% with no transfer fee to be worthwhile for me.
    Last edited by phillw; 23-04-2017 at 9:59 AM.
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