Why am I such a bad prospect for Credit Companies?

weedav

Hello all!

And Martin, if you read this post, thank you for all your fantatstic tips here and on TV.

I am at my wits end as to why I am always refused credit. I badly need to switch my debts to a lower interest rate and ALWAYS get rejected.

I have two credit cards, about £2000 between them, and I pay the minimum every month (I know this is wrong, but I have a plan to play them off doing overtime at work). One month I missed paying it by one day, but got it all sorted.

I also have a car loan (around £7000 left) for which I pay £249 per month, and I have never missed a payment.

The only thing I can see against me is that I have moved around a bit in the last three years, 6 houses in total. Can this really affect my credit score?

I have a good job and salary, and have always been in employment since I graduated two years ago. So WHY why why do I always get rejected??

Please, anybody, shine some light for me!


Thanks,
Dav

alexei_2

Are you on the electoral register???

weedav

I am on the electoral register in Scotland ( I now live in London),so that I can vote in the Scottish Parliamentary elections.

Do you think this might be the problem?

Robert_Sterling_3

This post has been modified slightly.

It gave a straight answers to the questions asked. Too straight perhaps.
It pointed out that credit had not always been refused {Three loans total  £9,000} That being on the Electoral role in Scotland whilst living in London could be a factor.
That having six addresses in three years was a factor. { i.e.  no fixed abode }
These are the reason that other lenders are reluctant to lend. RS

nh

Sometimes (often actually) you just go too far, Robert Shilling.

Weedav, just ignore him (most people do). It is almost certainly because you live in London but are not on the electoral roll at the address you live at. Obviously, that is the first thing credit companies check. You may have put written any old address down on the form.

Missing one payment one month on a credit card is not going to adversely affect your credit rating.

weedav

Thanks for the advice.

I heard on the radio yesterday that around 80% of the population have no idea about credit and general finance issues.

That is part of the reason why I logged onto this site - I actually want to learn how finances work, and how to improve my situation (which isn't, to be honest, that bad, but something I want to be in control of). I'm quite young, trying to get myself together, and wanted some words of wisdom.

..which, thanks to some I have got.

The electoral role register is now something I am going to look into. The reason I haven't registered at my new address yet is because I wasn't sure if my career was going to take off, and whether I would settle down here long term.

Thankfully it has.

It's great that on this site, most people can give simple advice, without patronising the person asking.

Thanks.

nh

It's great that on this site, most people can give simple advice, without patronising the person asking.

Talking about anyone in particular? ;D ;D ;D

Robert_Sterling_3

It could only be you nh.

westernpromise

I am on the electoral register in Scotland ( I now live in London),so that I can vote in the Scottish Parliamentary elections.

Do you think this might be the problem?

First of all, get a copy of your credit report from Equifax and Experian, the two main players, so you can see whatever it is potential lenders see. They cost £2, or alternatively, you can get access to Experian's for nothing for 30 days via their website. If you try the online route, you will need to have a few credit card statements etc handy, because Experian set you a little test to make sure you are indeed you (eg "what was the balance on your Barclaycard last month?" - that sort of stuff).

As others have said, your being on the electoral roll in one place while living in another is certainly going to alarm some lenders. It means they can't validate your address, nor even who you are.

In the same vein, though, you should also make sure that everyone who's contributing to your credit report - your bank, your card issuers, utilities, any student loan bodies etc - are all using the same address for you.

You may still have credit card statements going to your folks' address, for instance. Bad idea - again, it means new lenders don't know who you are or where you really live. If you default and they need to send the Terminator after you, they want to be sure he hits the right guy.

Do all that and give it say 3 months. It will take that long for all the updated, consistent info to percolate through to your credit report. Then request it again. Once it looks nice and clean, try applying again and see what happens.

Hope that helps.

nh

It could only be you nh.

The thing is, it is all very well being a 'funny guy' Robert, but when new people come on here, they don't know you and don't know to take your comments with a pinch of salt (or ignore them altogether). Just try not to be nasty to other moneysavers. It is not necessary and it just discourages others from posting and therefore maybe finding the answers to their problems.