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

ScRiMpNsAvE_2

Weasely_Weasel wrote: »

Any thoughts anyone?

Weasel

I don't know much about student accounts / ODs but savings aren't considered when appying for credit, so as far as any potential lender is concerned if you're always maxed out in the red this will have an obvious impact on any applications, and without a good income (I'm obviosuly making assumptions) its unlikely you'll get a good deal. Saying that I find it hard to comment as I've never been in such a position.

Have you tried checking your credit rating with Experian / Equifax? It won't give you a definitive answer but will give you an idea of what you could potentially look like to a lender, with all things considered?

SnS

DrScotsman

BlaEm wrote: »

I graduated from University last year, moving from my mum's to my dad's to be closer to work. I have registered on the electoral roll at my new address.

For my council (Coventry), the electoral roll is updated once a year in December (this is said on the council's website, I'm not just guessing). I had my Credit Expert free trial in the November-December period, and I was definitely originally not on the electoral roll at the start of my trial, and I was at the end. And I definitely registered for the roll in August. You're probably in the same situation.

If you still want to sign up for current accounts, I'd register them at your old address, and once they're all set up change it. A bit tedious (might be easier if you let your mum forge your signature if needed ) but it should probably work.

harryhound

BlaEm wrote: »

However, I have been refused current accounts with both Nationwide and HSBC, despite not wanting a credit card or an overdraft. The former offered me a cash card account as they believed I was too risky to have a debit card! .

You could try Alliance & Leicester - they have a reputation for being a bit easier

(Send me a PM & I might offer to "introduce" you:D. As explained in this week's MSE newsletter the introduction bonus is to be withdrawn next week - see A&L web site).

I expect their new owner Santander thinks they are too generous.

Harry

BlaEm

Thanks everyone, I'm relieved to know I'm not the only one!

I worry that if I apply again I'll damage my credit score (I assume current accounts carry out checks even if you don't want any credit facilities?)

I was refused a savings account with First Direct a couple of years ago, I know they're done on different criterias but I can't take any more rejection :rotfl: And unfortunately I still have a very old joint account (with my ma) with A&L from when I was under 18 so doubt I'd be eligible for the cash back, thanks anyway!

I've checked with my Council and I am definitely on the electoral roll now. So I don't want to apply from my mum's address as they'll be able to tell I don't live their any more, presumably? Nationwide originally suggested that I try this, but the computer still said 'no' when they tried! Now, my ID is at my new address and everything (stupidly thought I was making it easier!).

My timeline:
August 08 : rejected from Nationwide for FlexAccount - not on electoral roll given as probable reason.

January 09: having sorted out ID / Electoral Roll, told that applying again too soon could damage my score so offered a cash card.

Give up and open a current plus with Natwest (my student providers)

February 09: Apply for an Egg credit card online (I save with them) but am rejected (trying to get a card to put my work expenses on to)

March 09: Apply for HSBC Reward account online - rejected.

3 rejections in 8 months - have I done any lasting damage? Should I pay off my overdraft?

DrScotsman

BlaEm wrote: »

I was refused a savings account with First Direct a couple of years ago

I was not aware any savings account credit scored you...unless they refused you on another basis.

I've checked with my Council and I am definitely on the electoral roll now. So I don't want to apply from my mum's address as they'll be able to tell I don't live their any more, presumably?

Dunno, but I will tell you that as far as Experian knows I am on the electoral roll at two addresses (that's not illegal or anything, is it?)

Rabbitx

Hi, I hope you can help. I am out of work and have 'maxed out' on two current account overdrafts (£4000 total). I am not worried about this as in 4-6 weeks I will receive an inheritance (around 30k). However I'm struggling to survive & pay debts, and am faced with inevitable negative points appearing on my credit file in the next 2 weeks, of which up until now, I have none. As I will be solvent again, when back in full time employment, I will finally be able to get on the housing ladder, so avoiding any negatives is crucial.
I applied to Virgin for a card and not surprisingly, was turned down, as I'm out of work.
I had thought about applying for an Aqua card, though thanks to comments on this forum, I think I will have to pass on them.
If I approach my own bank, (Halifax or Natwest), and explain the situation, but get turned down, will their search appear on my file, and potentially deter anyone else I apply to?
I've never had a credit card, but feel it's a good time to improve my rating.

3676will

my daughter can`t get a chip and pin account at her bank because her flat has a previous bad rating going back several years due to previous unconnected tenants debts how can she resolve this :mad:

Moggles_2

DrScotsman wrote: »

As far as Experian knows, I am on the electoral roll at two addresses. (That's not illegal or anything, is it?)

No, there's nothing to prevent you from being on the electoral roll at two separate addresses. A large body of voters (students) register at Uni, but stay on the roll at their parents' home.

Caution: if the family home is occupied by one person who qualifies for a single person's discount, I wouldn't advise it.

Moggles_2

Rabbitx wrote: »

I am out of work and have 'maxed out' on two current account overdrafts (£4000 total). I am not worried about this as in 4-6 weeks I will receive an inheritance (around 30k). However I'm struggling to survive & pay debts and am faced with inevitable negative points appearing on my credit file in the next 2 weeks, of which up until now, I have none. As I will be solvent again, when back in full-time employment, I will finally be able to get on the housing ladder, so avoiding any negatives is crucial. I applied to Virgin for a card and, not surprisingly, was turned down, as I'm out of work. If I approach my own bank (Halifax or Natwest) and explain the situation, but get turned down, will their search appear on my file and potentially deter anyone else I apply to?

Unfortunately, it could and, TBH, you've little chance of success at the mo.

I've never had a credit card, but feel it's a good time to improve my rating.

If this would be your first credit card, you have a limited credit history, so from the lender's perspective you're something of an unknown quantity. They are likely to see your lack of a payment history, not to mention the absence of an income, as too great a risk.

Lenders like stability, so best practice is to apply for credit facilities, where possible, before you change jobs. Being with the same employer, bank and current address for a while all help when applying for credit cards. I would concentrate on finding another job first.

For tips to improve your chances of credit card acceptance, have a look at the *Credit Rating: how it works and how to improve it guide*, especially Martin's *Manage and Improve your credit score* article which triggered this thread

http://www.moneysavingexpert.com/banking/credit-rating-credit-score#improve

Rabbitx

Thanks. There's been some stability in the sense that I have been in the same privately rented address for over 12 years, but I guess it comes down to how they read into things.