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Credit Check!?!?!

I was wondering if anyone could shed some light on the credit check system as i recently applied for an argos instore card and was refused.
Not to go into too much detail but i have a wife and now 3 dependant children, a mortgage, a loan, a credit card, an overdraft but all very little. just have them as i seem to have collected them over the past 10 years. Im 28 so young and i earn around 35K-39K a year depending on how much overtime i want to do. I had to get the loan with the tsb which wasnt a very good intrest rate at the time but its the only one i could get as I had just left the army in germany and didnt have a fixed permanent uk address for the previous 3 yrs. Not getting the argos card really upset me when they lend money to people who are seriously in debt but not someone who isnt. I checked on a credit score site and our credit rating out of 1000 max came up as 834. 4 stars out of 5. but then checked our postcode and it came up 100 points below then national average. that was 2 stars out of 5. We live in a very nice set of 3 cul-de-sacs but 2 streets away there are a couple of rough streets.
What I would like to ask is - Does the area you live in dictate your credit score?? If so why? I have a really lovely house that backs onto a river. So why should streets a few hundred meters away bring down our score?

Thanks Steve
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Comments

  • cifpower
    cifpower Posts: 6,502 Forumite
    Where you live does not affect your credit rating
  • The only thing is cifpower I have heard many reports of people who have bad credit or run up debt problems in an address leaving the address with a bad rating. Even if this is the case it should change as soon as you update the electoral roll shouldnt it?
    Cheers Steve
  • cifpower
    cifpower Posts: 6,502 Forumite
    Addresses cannot have bad credit ratings - only people
  • Moggles_2
    Moggles_2 Posts: 6,097 Forumite
    Credit ratings assess people, not dwellings. If you share a financial product (eg. joint bank a/c) with someone else, then you are financially linked to them and their affairs could have an effect on your credit rating, but simply occupying the same house/flat/street as someone with a poor credit history, has no effect whatsoever.
    Not getting the Argos card really upset me...
    Where exactly did you check your credit rating? Have you looked at your credit reports lately to see what's on there? For help, see page 1 of the *How to obtain credit reports* sticky

    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 ;)

    http://www.moneysavingexpert.com/banking/credit-rating-credit-score#improve
    People who don't know their rights, don't actually have those rights.
  • Innocent_Guy
    Innocent_Guy Posts: 5,369 Forumite
    You need to write to argos and ask the reason for your decline
    Bank Accounts - Barlcays Premier[/B] - £1000 o/d, HSBC - £200 o/d- First Direct - £500
    Credit Cards - Barclaycard £2000 - Silver Card £1300 - Flybe £7500 - HSBC £1000 - First Direct £2500 First Direct Gold £3000
    6 credit accounts closed in 2010!

    Official SOS Club number 001 - Dry until 01.07.10
  • nzseries1
    nzseries1 Posts: 2,240 Forumite
    edited 22 April 2009 at 4:59PM
    cifpower wrote: »
    Where you live does not affect your credit rating

    I thought I read somewhere that the postcode you live in DOES affect your [STRIKE]credit score[/STRIKE] ability to get credit. If you live in an area where a higher percentage of people default on their debt, then you are more likely to default on yours.

    In any event, the link that Moggles posted above is a very good read.
    http://www.moneysavingexpert.com/banking/credit-rating-credit-score#improve
    You're spelling is effecting me so much. Im trying not to be phased by it but your all making me loose my mind on mass!! My head is loosing it's hair. I'm going to take myself off the electoral role like I should of done ages ago and move to the Caribean. I already brought my plane ticket, all be it a refundable 1.
  • Innocent_Guy
    Innocent_Guy Posts: 5,369 Forumite
    nzseries1 wrote: »
    I thought I read somewhere that the postcode you live in DOES affect your credit score. If you live in an area where a higher percentage of people default on their debt, then you are more likely to default on yours.

    In any event, the link that Moggles posted above is a very good read.
    http://www.moneysavingexpert.com/banking/credit-rating-credit-score#improve

    Postcode does have an impact......... For example if you apply for a catalogue but in your area alot of people default on catalogues this will have an impact.

    Remember there is a difference between credit scoring & credit rating
    Bank Accounts - Barlcays Premier[/B] - £1000 o/d, HSBC - £200 o/d- First Direct - £500
    Credit Cards - Barclaycard £2000 - Silver Card £1300 - Flybe £7500 - HSBC £1000 - First Direct £2500 First Direct Gold £3000
    6 credit accounts closed in 2010!

    Official SOS Club number 001 - Dry until 01.07.10
  • mluton
    mluton Posts: 807 Forumite
    Part of the Furniture 500 Posts Name Dropper
    You need to write to argos and ask the reason for your decline

    Sorry to hijack, But am I right in thinking that the lender can refuse to say why they refused you ?

    Cheers, Matt
  • cifpower
    cifpower Posts: 6,502 Forumite
    I think they have to give a reason - such as "credit score " or "did not meet our criteria" but they do not have to tell you what those criteria are.
  • Innocent_Guy
    Innocent_Guy Posts: 5,369 Forumite
    mluton wrote: »
    Sorry to hijack, But am I right in thinking that the lender can refuse to say why they refused you ?

    Cheers, Matt

    As Cif said............
    Bank Accounts - Barlcays Premier[/B] - £1000 o/d, HSBC - £200 o/d- First Direct - £500
    Credit Cards - Barclaycard £2000 - Silver Card £1300 - Flybe £7500 - HSBC £1000 - First Direct £2500 First Direct Gold £3000
    6 credit accounts closed in 2010!

    Official SOS Club number 001 - Dry until 01.07.10
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