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

geordie_ben

cjstan wrote: »

Thanks for very interesting posts and their replies.

In May this year I returned to Britai after living in Turkey for the last 10 years.
Today I have been informed that I am a bad credit risk because I have no credit history after applying for a loan for a car.
The company I applied to says that I must have at least 3 years residence before any credit transaction decision can be given.
I have a bank account which is always in the black, but that has only been running for 8 months.
Any ideas how I can re-build my credit rating if I cannot obtain Credit because of the 3 years residence time required by the lenders. I am on the electoral roll, and, I am retired. Thankyou in advance for your replies and ideas, if any

pre paid / loaded cards... have a read here.. hopefully this will give you some good ideas

jameslivsey

Hi,

I've recently ordered my credit report which had no dodgy information and when checking the tool here itsays I have a good rating but Im unable to transfer a balance to a new card.

Ive tried a couple of providers (I dont want to apply to more than that...) and both rejected my application - does anyone know why this might be?

cheers

lisyloo

It could be that you have too much debt already compared with your income.
We couldn't really say without information like your income, total available credit, amount of credit used.

I know you are trying to transfer it but potentially you could use all your available credit so lenders have to consider that.
They are very conservative right now.

KittyRox

Hi there - I posted this question but with a different slant in another forum. The question is:


If I cancel an interest free credit account within the first 14 days (the cooling off period provided), will this affect my credit rating?

I ask because I naively took this out to by a sofa (before the VAT increase, thinking I was being clever!) and am now concerned that it could affect my mortgage application - only in Agreement in Principle stage at the moment with no full offer yet made.

Thanks so much in advance!

loveandlight

posted by Firekid
Hi, just been refused for a further advance on my mortgage due to my credit rating, i think this might of been due to being in 3 overdrafts at the time and also having an outstanding payday loan. I've paid of the payday loan and also got out of 2 of my overdrafts. Will this show up on my credit rating instantly or will it take a while. Would it be worth my trying again now that i have got out of the debt i was in?

Thanks for you time.

Your Payday loan won't show up on your credit file but will if you default on it and they have to enforce the loan. I suspect your rejection was because you have been using several OD's and well done you that you've managed to pay off the PDL and a couple of the OD's. Try again in a few months time for your further advance as your score will have improved by then. Or try and do without a FA and save up instead for whatever it is you want as your monthly payments will then go up again anyway with a FA.

SpottyRs

Hi,

I recently applied for both a business credit card and an overdraft on the business current account. Both were rejected this week.

I have checked my credit files at Experian, Equifax and CallCredit.

I do not have any active credit balances. I had a loan which was completed in 2005, all payments up to date. I have not applied for any CC until last week. I have 3 searches showing on Experian dated November 2010 and Jan 2011, none on Equifax and 2 on CallCredit dated July 2010 and April 2009.

My credit score on all three files is Good.

I cannot see any bad info on any of the files and I want to apply for a personal CC but am afraid it will also get rejected.

Any advice please.

geordie_ben

SpottyRs wrote: »

Hi,

I recently applied for both a business credit card and an overdraft on the business current account. Both were rejected this week.

I have checked my credit files at Experian, Equifax and CallCredit.

I do not have any active credit balances. I had a loan which was completed in 2005, all payments up to date. I have not applied for any CC until last week. I have 3 searches showing on Experian dated November 2010 and Jan 2011, none on Equifax and 2 on CallCredit dated July 2010 and April 2009.

My credit score on all three files is Good.

I cannot see any bad info on any of the files and I want to apply for a personal CC but am afraid it will also get rejected.

Any advice please.

have you read thru this page? http://www.moneysavingexpert.com/loans/credit-rating-credit-score#improve

Mowgli87

SpottyRs wrote: »

Hi,

I recently applied for both a business credit card and an overdraft on the business current account. Both were rejected this week.

I have checked my credit files at Experian, Equifax and CallCredit.

I do not have any active credit balances. I had a loan which was completed in 2005, all payments up to date. I have not applied for any CC until last week. I have 3 searches showing on Experian dated November 2010 and Jan 2011, none on Equifax and 2 on CallCredit dated July 2010 and April 2009.

My credit score on all three files is Good.

I cannot see any bad info on any of the files and I want to apply for a personal CC but am afraid it will also get rejected.

Any advice please.

Personal Credit files and Business credit files are seperate. You may have perfect personal credit, but if your business alreay has loans/have unpaid invoices etc this would affect your business credit. I think you can find all that here: www.creditgate.com

James129

Hi, I was successful in getting 2 credit cards in July last year. Thoes were,

1- Barclaycard Initital - apr 29.9% with limit of £250. They have now increaed it to £650.

2- Capital One Progress - apr 30.340% with limit of £200. They shrunk the apr to 26.480% but didnt change my credit limit on 4th statement. Reason they gave was I didn't make any transactions during four months which was total rubbish. I made significant transactions each month and paid in full.

Anyway, I just want to ask how long I should to apply for a proper cc with decent limit. Imo, with enough limit so I could book holidays or buy tickets or laptop.

BugsyBrowne

James129 wrote: »

Hi, I was successful in getting 2 credit cards in July last year. Thoes were,

1- Barclaycard Initital - apr 29.9% with limit of £250. They have now increaed it to £650.

2- Capital One Progress - apr 30.340% with limit of £200. They shrunk the apr to 26.480% but didnt change my credit limit on 4th statement. Reason they gave was I didn't make any transactions during four months which was total rubbish. I made significant transactions each month and paid in full.

Anyway, I just want to ask how long I should to apply for a proper cc with decent limit. Imo, with enough limit so I could book holidays or buy tickets or laptop.

You need to check your credit report and make sure there are no missed/late payments no defaults/CCj's then your chance of getting a decent card would look a lot better..