Help! Advice needed on establishing a credit rating after being given bad info!

Kamen

Hey there, I hope I'll be able to get advice here on setting up a good credit rating as I've recently had some problems with it and don't know what to do. First, some background – this may take a while to go through, so my appreciation in advance for reading through it all!

I'm 26, employed, on a good wage, been living in my current address over three years, my current bank for seven plus, I’m on the Electoral Roll and have never been in debt. As an extension of that, I've never taken out a credit card before. My mobile is on contract with Virgin - £12 per month - and I've rarely gone into my overdraft on my current account, instantly repaying on the occasions I have.

I recently decided I should start building up a credit history beyond phone contract and current account though, for when I want to buy my own place, so applied for a couple of cards. First I applied for the Play.com card, then a couple of month's later the Abbey/Santander 0% card <not realising that I was unlikely to get one without a credit history to begin with>. After I was declined for that one, I was told - erroneously - by someone at Abbey that having failed credit applications did not affect my rating and I should try one of the "less discerning" providers for my first credit card, such as MBNA. I did so and was also declined.

At this point, I signed up for Experian's 30 day trial, then bought the ‘full’ credit score for £5.95 – I have another issue with that actually, which I’ll get to later. The report now shows I have a ‘Poor’ rating but the ONLY negative it shows is that I have had 3 or more credit searches against me within 6 months.

I’m actually at quite a loss as to what to do now – I don’t want to keep applying for more and getting into a rejection spiral, but I DO want/need to start building a credit history. The truly frustrating thing for me is that I ONLY want to use the damn thing for literally one or two purchases per month that I would normally stick on my debit card and pay them off straight away. I’m not anticipating ever having more than £100 debt on a credit card.

Things I don’t know:

- If I wait six months or so before applying again, will the searches currently lowering my score be ‘forgotten’? Or, worst case scenario, am I now permanently ‘blacklisted’ for daring to even apply for credit?

- Is there anything I can do to increase my chances of getting a first credit card, particularly for the reasons I need one and the minimal use it will get? It’s not like I have any bad debt to clear or payments to make – I need to establish credit for the first time, so none of the usual pointers or advice seems to apply to me.

- Why does the provision of credit seem so incredibly arbitrary? I know 18 year olds just going to Uni with no jobs or credit history who have been given cards, yet I can’t get one at 26, having never been in debt. It feels like I’m being punished for being sensible with my money up until now and not spending beyond my means!

The whole system seems incredibly counter-intuitive – no-one will give credit without a credit history but you can’t get a history without getting credit! Please help me get on the proverbial ladder!

Now, for the Experian problem. Having looked around here, I’ve seen how to order a credit report for a mere £2. I’m wondering what the hell I paid £5.95 for now, since seeing the factors affecting my score – and, as I said earlier, the only negative is that I’ve had multiple searches against me – doesn’t seem to warrant the extra £3.95. Is there some other feature Experian supplies for that, that I’m perhaps not seeing, and if not is there any way to claim a refund? Also, does the £2 report detail your numerical score and any factors? Finally I’m about to cancel my 30 day trial so I don’t get charged – will I still be able to log on and see the score I paid for?

Thanks for your time and I REALLY hope someone can help me out here!

stephane_2

Your experian credit score does not really mean anything, each lenders have their own criteria so if you have not had any cc before then it might be an idea to go for Barclaycard Initial, Vanquis or Capital one. the interest are high but if you spend little every months and pay off the balance monthly then it will certainly improve your credit profile and maybe in 6 months time apply for a mainstream CC

stephane_2

The more searches you will do within a short period of time will lower your score and potential creditors will see you as someone desperate to get credit. 3 searches in 6 months is not in itself too damaging and most lenders will not take that into account 6 months after the search has been made and they will all drop off from your file after 12 months.

Kamen

stephane wrote: »

Your experian credit score does not really mean anything, each lenders have their own criteria so if you have not had any cc before then it might be an idea to go for Barclaycard Initial, Vanquis or Capital one. the interest are high but if you spend little every months and pay off the balance monthly then it will certainly improve your credit profile and maybe in 6 months time apply for a mainstream CC

But that's the fear I have now - if I keep applying for more, and I get declined, it's just going to look worse and worse, isn't it? Isn't there anything I can do to improve my chances? I don't even really WANT a CC, I just NEED one to build a history so I can get a mortgage later!

stephane_2

Maybe wait a months or 2 then apply for one of the card I mentioned. You will probably get a small credit limit, but it will help you if you use it regularly and pay off balance monthly. Have you tried with your own bank?

Kamen

stephane wrote: »

Maybe wait a months or 2 then apply for one of the card I mentioned. You will probably get a small credit limit, but it will help you if you use it regularly and pay off balance monthly. Have you tried with your own bank?

Abbey is my own bank, which I thought would have helped me in my application but apparently not. I've never heard of Vanquis, so I'm VERY dubious of signing up with a financial institution of which I'm unaware, and I was under the assumption that Barclaycard and Capital One were quite picky on who they accept. I really feel like I don't have anywhere to turn or apply to without making my situation and, more importantly, my credit rating worse!

Any

Kamen wrote: »

Abbey is my own bank, which I thought would have helped me in my application but apparently not. I've never heard of Vanquis, so I'm VERY dubious of signing up with a financial institution of which I'm unaware, and I was under the assumption that Barclaycard and Capital One were quite picky on who they accept. I really feel like I don't have anywhere to turn or apply to without making my situation and, more importantly, my credit rating worse!

Yes, they are but they both have 2 different cards - 1 with good rates and one sub-prime card.

I would go and have a look at Sub-prime credit card thread and have a bit of reading there as that is exactly the thread you need. It's for people re-building or building up credit rating.

Kamen

Good grief, I'm really at a loss here. I've applied for, and subsequently been declined for a card with Capital One - not a particularly good one either, 34.9% or something. I really don't understand why I can't get ANY form of credit - according to my credit report, my only crime is not ever having had credit before now, and having more than three searches in 6 months. I'm actually getting quite upset and worried about it all.

CannyJock

Kamen wrote: »

Good grief, I'm really at a loss here. I've applied for, and subsequently been declined for a card with Capital One - not a particularly good one either, 34.9% or something. I really don't understand why I can't get ANY form of credit - according to my credit report, my only crime is not ever having had credit before now, and having more than three searches in 6 months. I'm actually getting quite upset and worried about it all.

Have you applied for any catalogues, or additional bank accounts with an overdraft facility (that you never use) to get some additional data onto your credit report? Or starting with the sub-prime cards and clearing in full each month to avoid their crazy interest rates?

3 searches in 6 months isn't excessive. Try 10 in 3 months

You need to lower your sights and start smaller, it'll build if you give it time.

digitalphase

Kamen wrote: »

Good grief, I'm really at a loss here. I've applied for, and subsequently been declined for a card with Capital One - not a particularly good one either, 34.9% or something. I really don't understand why I can't get ANY form of credit - according to my credit report, my only crime is not ever having had credit before now, and having more than three searches in 6 months. I'm actually getting quite upset and worried about it all.

I'm surprised CAP1 declined you.

Why not try Vanquis or Aqua? They are sub-prime and will probably give you a small limit to start, but at their APR you don't want a high one anyway. Hopefully after 6mths or so you can then get a mainstream card.

PNPSUKNET

It maybe worth checking equifax, something isnt right if capital one is not accepting you. Get a jdwilliams account they give it to anyone and you dont even have to use it, have it for 6 -12 months then close it