Credit Rating: How it works and How to improve it discussion area

izools

Loueze245 wrote: »

Thanks for taking the time to have a read of this - I'm very new to credit cards and finally built up the nerve to apply for one this morning as a bid to ironically try and help with my credit score so that I would one day be able to apply for a mortgage.....

Turns out it's done the opposite as I have been rejected when applying for the Tesco Credit card. Prior to applying I checked my credit report with Experian and felt confident it would go ok.....


things worth mentioning on report:

• 4 search records from car insurance searches (would this be too high?)
• 5 address records (student rented homes and family house move = high number)
• My previous credit accounts are both settled so no problem there.
• Electoral role - correct and upto date
• No other records - sparkly clear!

things worth knowing are that I'm currently in my overdraft with Graduate account HSBC so wondered if this would affect my score. I'm also earning approx £900 take home p.m - is this too low?

On my application I stupidly entered the incorrect address dates - missing out one that I lived at for a short period, thinking it was insignificant but am really worried due to this oversight I've scuppered my chance at getting this card AND having a rejection for a credit card on my record


I would really really appreciate some advice on sorting this, why I'm likely to have been rejected and how badly this would ever impact on ever securing a mortgage/arranging direct debit payments in the future.


Thank you all!!! Love this site!! x:j

Don't worry, it doesn't sound like you've messed anything up atall.

You won't get a "prime" credit card as you don't have any prior credit history - you need to start off building your credit history with a "sub prime" card

The cards designed for someone in your position are:

Capital One Classic
Vanquis Visa
Aqua Mastercard
Barclaycard Initial

Once you've got one or two of those you'll start building repayment history with a credit agreement and this will show on your file. A year or more history will be enough to then look at applying for a "prime" card, like that Tesco card, who will then have a way to rate you - as they will see how you've handled credit card(s) in the past.

Good luck, let us know how you get on

LDJ2009

Hi, bit of advice for my Sister please

She's 29, apart from a bank account with Abbey which has a £500 overdraft which she went over twice for a day each time last year, she has no other credit accounts.

She wants to get a second hand car for £3k and has applied to Tesco for a loan, getting the "we'll write to you" email after she applied online

Would the fact that she hasn't borrowed in the past apart from the bank account affect her chances ?

Thans

Magpie1892_2

My Girlfriend has been knocked back for a mortage ( 80% ). She has a missed mortgage payment from 2 yrs ago, however this mortgage is settled now and it was for 1 month only.

How can we get this record removed?

izools

You can't get it removed but if it's the only adverse on her credit file it won't really be maknig any difference.

The decline will have been due to another reason I'm sure. One missed payment from two years ago amidst a sea of perfection really won't mak a blind bit of difference to a credit application!

Loueze245

Thank you for your response with regard to my Tesco credit card rejection - makes complete sense really when you put it like that! Why would they lend if they have no idea if I'm likely to pay back

I will look into the cards you mentioned - mega high APR I suppose and not such great perks as airmiles but worth it for bulding up credit!

Cheers!! :j

jdslimma

Hi, I have been offered a settlement figure on a credit card debt which I unfortunately allowed to get out of hand & is in the hands of a recovery agency. I have managed to negotiate down the amount and if I pay the settlement figure, they tell me that the credit record will show that a partial settlement has been made and my question is should this be a cause for concern? Thanks.

izools

jdslimma wrote: »

Hi, I have been offered a settlement figure on a credit card debt which I unfortunately allowed to get out of hand & is in the hands of a recovery agency. I have managed to negotiate down the amount and if I pay the settlement figure, they tell me that the credit record will show that a partial settlement has been made and my question is should this be a cause for concern? Thanks.

First of all, get this offer in writing.

Once you have it in writing, make a counter offer that you will agree to pay immediately the short settlement figure on condition that the default is removed in full from your credit file. Whilst they have the ability to do this, they may not, but it's worth trying.

If they won't budge, and will only mark the account as "partial settlement" then the default will remain, showing a NIL balance, but will still have some impact on your credit file.

If it's the only default you've got and you don't miss payments elsewhere it won't really have a *massive* impact as long as it's not recent (under two years old) and the older it gets, the less impact it will have.

Either way, don't cough up a penny until you've got it in writing that they are accepting £xxx in full and final settlement of the debt.

jennymeg2

Hi, I am looking for some advice please. I recently applied for a mortgage with a building society and was refused. They are on my credit score now as having searched. I have an interest only mortgage at minute and desperately want to change it to a repayment one so I thought about just changing with my current lender. I wouldn't be borrowing anymore money than I already have just changing the deal, I have checked my credit rating and is fair, will the fact I have applied with another lender go against me when I apply with my own, I am scared to apply incase it damages my score. can anyone advice.

Thanks.

dave0783

hello,

just a quick question about getting my credit report.

i have been working abroad but had debt in the uk (now paid in full). i want to get my credit report to see if there is anything i can fix, however, i don't have a UK account to pay for the service and when i pay with my foreign card it rejects the application because my card isn't registered to my current address.
is there any way to get around this issue?

izools

dave0783 wrote: »

hello,

just a quick question about getting my credit report.

i have been working abroad but had debt in the uk (now paid in full). i want to get my credit report to see if there is anything i can fix, however, i don't have a UK account to pay for the service and when i pay with my foreign card it rejects the application because my card isn't registered to my current address.
is there any way to get around this issue?

No. You must use a card registered to the address you are entering into the application. It may be wise to open a basic current account purely for signing up. Co-Operative Cashminder, Natwest Step, Barclays Cash Card, and Halifax Easycash all come with VISA debit cards and are open to those with dire credit (not saying that you have dire credit, but these are incredibly easy accounts to get approved for).