Just turned 18... Why am I rejected for credit?

cifpower

GKJB wrote: »

OK thanks, I'll get up the council today and ask them... so if I'm not currently on the electoral roll, will there still be marks on my credit file?

Your searches will be on your credit file and also your addresses which you used on the application forms. But its wise to get them anyway to make sure everything is ship shape and bristol fashion.

GKJB

Idiophreak wrote: »

Made a bit of a mistake applying to Halifax *online* imo - if you'd have gone to a branch, you'd have been able to push the matter harder with them.

If you really do only need the card for emergencie, I would personally wait for 6 months or so and then try - just put some money in a "rainy day" pot in the meantime....

So you have a mobile contract, any magazine subscriptions etc? Adding these will help build your credit rating for next time you apply...

Yeah I guess so, I also wanted it to buy something I urgently need but can't afford to pay for in one payment. I don't have any contracts or magazine subscriptions. My sister got a contract for me when I was 17 which I pay her for every month, wish I would have waited now...

GKJB

Hopefully I should be able to sort things out now over the next few months, thanks for all your help :beer:

Idiophreak

cifpower wrote: »

Magazine subscriptions? Really? Never heard of that one. How does this help your credit rating?

I thought any direct debits help your score?

cifpower

Idiophreak wrote: »

I thought any direct debits help your score?

Magazine subscriptions aren't a credit agreement though. If you don't pay them they don't report this to Equifax et al. Direct Debits per se have no impact on your credit score; they are simply a way of paying loans or credit cards or store cards etc. If you pay them via cheque or debit card your credit score would be the same as if you had paid them by direct debit.

NickX

Idiophreak wrote: »

I thought any direct debits help your score?

No, this is not the case. There has to be some form of Credit Agreement in place for any effect on your Credit Rating to take place.

Utility Companies, who are more often than not, are paid by Direct Debit are only able to report to the CRAs if your account goes into default.

It makes no difference if you pay by Direct Debit, online banking or the good old cheque.

Idiophreak

cifpower wrote: »

Magazine subscriptions aren't a credit agreement though. If you don't pay them they don't report this to Equifax et al. Direct Debits per se have no impact on your credit score; they are simply a way of paying loans or credit cards or store cards etc. If you pay them via cheque or debit card your credit score would be the same as if you had paid them by direct debit.

That's interesting...I definitely read somewhere that not paying your mags subscription can hurt your credit score...Guess I stand corrected..
edit: so out of interest, do mobile contracts count as a credit agreement? What's the difference?

NickX

Idiophreak wrote: »

That's interesting...I definitely read somewhere that not paying your mags subscription can hurt your credit score...Guess I stand corrected..
edit: so out of interest, do mobile contracts count as a credit agreement? What's the difference?

Contract Mobile Phone contracts do actually count as a Credit Agreement.

You have got me thinking that with a magazine subscription you are legally obliged to pay for the entire course of the subscription (12\18 months etc). Perhaps due to the payments being minimal it is not worth their while setting up a formal CCA, but I suspect that if you did not keep up payments, they could sell the debt to a DCA or put a default on your file. I suspect subscriptions to gyms work in a similar way. Anyone know for sure ?

agsnu

NickX wrote: »

Contract Mobile Phone contracts do actually count as a Credit Agreement.

Actually, they don't. You'll note that you can order a mobile phone contract off the internet, without actually signing anything. Compare this to a credit agreement regulated by the CCA, which requires them to keep a record of your signature - if you apply for a credit card they'll send you a form to sign.

Anyway, if you're on £3k per year and paying rent privately, you basically have no spare income so you really shouldn't be trying to get a credit card.

Idiophreak

agsnu wrote: »

Actually, they don't. You'll note that you can order a mobile phone contract off the internet, without actually signing anything. Compare this to a credit agreement regulated by the CCA, which requires them to keep a record of your signature - if you apply for a credit card they'll send you a form to sign.

Err...sure I've actually applied for some cards where they don't send the form to sign, I think they do the "virtual signature" "click this box" thing instead?