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

seaney76

I'm on the electoral roll, 12 months into a two year mobile contract, got a £1000 overdraft and just got a £2000 loan paid back over 12months from the bank whom still refused me a credit card!!!any ideas

Lulu_Raymonds

I have bad credit, I've been told that the way to improve it is to spend money on a credit card each month then pay the balance in full each month. This apparently will improve credit however due to my bad credit no one will give me a credit card. So what do I do??????

Tixy

Lulu_Raymonds wrote: »

I have bad credit, I've been told that the way to improve it is to spend money on a credit card each month then pay the balance in full each month. This apparently will improve credit however due to my bad credit no one will give me a credit card. So what do I do??????

Hi


When you say you have bad credit what negatives are actually showing on your credit reports? and how recent are any negatives?


What credit cards have you applied for and been declined for? have you been applying for mainstream cards with the high street banks? or have you tried applying with a subprime card lender?

Thrugelmir

Lulu_Raymonds wrote: »

I have bad credit, I've been told that the way to improve it is to spend money on a credit card each month then pay the balance in full each month. This apparently will improve credit however due to my bad credit no one will give me a credit card. So what do I do??????

Wait. Time heals. Learn to survive without credit.

Tixy

seaney76 wrote: »

I'm on the electoral roll, 12 months into a two year mobile contract, got a £1000 overdraft and just got a £2000 loan paid back over 12months from the bank whom still refused me a credit card!!!any ideas

Which bank was that? Have you tried applying for a card from a different lender?

suzannescook

I have applied for a new credit card as my current interest free period is coming to an end so wanted to balance transfer to a new card, I have not spent on my CC for 4 years and am just clearing the current balance now at £800. I have been refused a new card by Lloyds and Bank of Scotland and I am a little puzzled as to why. I have checked my Experian report and I have score of 995 and classed as excellent, I have never defaulted and don't have any other debts apart from my mortgage. The only thing I can think of is that myself and my partner took out a new interest only mortgage in August 2013 could this be why we are being refused credit?

Tixy

suzannescook wrote: »

I have applied for a new credit card as my current interest free period is coming to an end so wanted to balance transfer to a new card, I have not spent on my CC for 4 years and am just clearing the current balance now at £800. I have been refused a new card by Lloyds and Bank of Scotland and I am a little puzzled as to why. I have checked my Experian report and I have score of 995 and classed as excellent, I have never defaulted and don't have any other debts apart from my mortgage. The only thing I can think of is that myself and my partner took out a new interest only mortgage in August 2013 could this be why we are being refused credit?

I would think it unlikely to be the mortgage causing the issue.

If your mortgage was for a new property does your credit file show you as being on the electoral roll at your current address?

Does you partner have any issues on their credit file? (by having a joint mortgage you will be financially associated so any potential lender will also look at their credit file).

Who is your current card with? how much do you repay each month (is it the minimum or more than that)?

Are you employed/earning?

suzannescook

Hi
No the mortgage is for our current address which we have at for 2 1/2 years. We are on the electoral role.

My partner is self employed but has also got a very good credit rating, he does have 1 outstanding cc with Barclays with about £900 on it. He has been paying the minimum amount on this some months and £50 other months. I pay £50 off per month by DD which is over the minimum amount.
I am employed full time and have been in the same job for 7 years. We are very confused as we have never had any problems previously

Tixy

suzannescook wrote: »

Hi
No the mortgage is for our current address which we have at for 2 1/2 years. We are on the electoral role.

My partner is self employed but has also got a very good credit rating, he does have 1 outstanding cc with Barclays with about £900 on it. He has been paying the minimum amount on this some months and £50 other months. I pay £50 off per month by DD which is over the minimum amount.
I am employed full time and have been in the same job for 7 years. We are very confused as we have never had any problems previously

It does sound a bit odd then. Might be worth getting copies of your credit files from the other 2 agencies to see if there is anything incorrect on them.

Or you could possibly try appealing the declines with lloyds/BOS if they are recent. 1 to see if they may change their mind or 2 to see if they may give any further indication as to why they declined you.

You could look at the preapplication checker for credit cards on this website. Its only a guide but may be interesting to see what % those 2 cards come out at, and if any other cards look more likely to accept you.

Doz34

My situation is this, myself and my partner are looking to get a mortgage for our first home. In December we went to a bank to get information and find out what our options where. So the mortgage adviser using our desire to get a mortgage convinced us to swap accounts to their bank and take out a credit card with them knowing full well that our thinking was that if we swapped to them they would be more likely to give us a morgage. All the way though the process was asking if any of what we where doing would affect my credit score. they said no. Now my credit score is 699 when it was 850 on Experian. The reason my score has decreased is because my oldest account was closed and I now have a credit card that is less than 10 months old. I would like to know if there is anything I can do to rectify this? as we where mis led by so called professionals looking only to profiteer. and if not what are the implications of my now poor credit score and how long it will take to improve?