Poor credit history or no credit history?

golden_slumbers

Hi all,

I would really like to improve my credit rating. I was recently refused a graduate loan from my bank (HSBC). HSBC said that this was nothing to do with my behavioural score (which I took to mean the balance of my incomings/outgoings), rather my credit check failed. I was advised to obtain a copy of my credit report to see what was causing my poor credit. I have a copy of my experian credit report, and as far as I can see there is nothing wrong with it. The only info they hold is about my current account with HSBC, a joint account I have with my partner with Lloyds TSB to pay household bills, and my orange mobile phone account. These are all fine, apart from a 2 week late payment on my orange account in February this year (I accidentally cancelled the wrong direct debit, and paid and set up a new DD as soon as I received the letter).

Could this be causing my poor credit rating? Or is it just a lack of history? I have never had any credit cards/loans. If it is this, how can I improve my rating if nobody will let me prove I can handle debt?

Thanks for any suggestions.

p.s. I am 23, graduated last July and have been working full time ever since, earning around £22,000.

Rafter

Two back to back late payments on your Orange account are probably enough to trigger this problem.

You could try asking them to manually underwrite the loan and give them a bit more detail about the DD mixup - they might then force the loan through?

Good luck

R.

golden_slumbers

Thanks for your reply.

I am not too concerned about the loan anymore, I borrowed from the 'bank of mum and dad' and am in the process of paying them back. What I am worried about is improving my score for the future i.e. for mortgage applications. When will the late payment with orange drop off my report? It was only one late payment, I paid twice in one month once I realised my mistake. Am I likely to be refused all credit until this disappears?

CLAPTON

One late payment wouldn't make a lot of difference and becomes even less important as time goes on

however a lack of credit history will affect you so

I would suggest you apply for a credit card, use it regularly for things you anyway buy (say petrol or whatever) and pay in full each month by DD (don't of course cancel the DD by mistake)

I would normally suggest you apply to your bank as they should know you well... but that may not be appropriate now..not really sure
maybe try them first..if they refuse wait 2/3 months and try barclays initial, vanquis, cap1 ..all awful interest rates but that won't matter if you pay in full each month.