I have a good credit score yet I cant get credit !!WHY>???

harrystar89

Hi,I,m new to this forum but was hoping for abit of advise. I have a good credit score for my age (i,m 20 but amlost 21) of Equifax says 797,and callcredit is the same!
I have a mobile phone contract,loan,and a credit card all for small amounts per month, My credit card is with capitalone and only has a credit limit of £100,I pay this without fail each month,My loan is for £1000 (balance) again I,ve had this loan now for 6months and I never miss a payment,and My 1xStore card I have a balance of £78.00 but my Credit limit is £600.00

And finally I have `My bank accounts 1x Business and 2xPersonal only 1 has a overdraft of £400 but all my accounts are up todate

I,m self employed and bring in a good wage of around £1200 PCM I Never ever miss a payment with anything,But yet my loan APR is 49%!!!! and I couldent get one any lower, And i always get turned down for any descent credit cards so have now stopped trying.

I wish to get finance of a car for around £3000 but I dout I,ll get accepted but just cant work out where I,m going wrong???

Any ideas???

I,m not struggling to pay my bills,but would be nice to get abit lower APR on my current loan,and really want a newer car !!!

Oh and I have a savings account aswell which doesnt look to bad.
And I,ve lived at my current address for 6years,I,ve been with my bank for over a year,and same for my business although I have always worked.

Thanks in advance for any help/advise:-)

StuTheDon

Hi - you may have too much available credit as a ratio to your income. I.e. you have a £1000 loan, you have access to a sotre card with a limit of £600, you have an overdraft facility of £400.

This means you have £2000 of available credit - how does a lender not know that you wont max that out on top of the £3k they lend you.

My advice would be to close the storecard, remove the overdraft facility, clear the £78 on your card and try again.

Assume you are on the electoral register etc?

harrystar89

Hi,Thanks for the advise yes I,m on the electoral register,well I,m still paying the loan off,so does that count as Aviaiable credit? I,m fine with paying off the credit card and closing that account,same goes for the store card,And I,ll reduce the overdraft on my account to say £100 as it does come in handy some times,Really The only Aviaiable credit I have would that I dont use would total too £1025, At the mo ,is that bad then???as Doesnt seem that much.as I dont have a morgage etc.Thanks again claire

MoneyBags

Could the fact that you clearly struggle with basic spelling (it's "available" not "aviaiable") and typing (the comma and apostrophe keys are not interchangeable) be relevant?

StuTheDon

MoneyBags wrote: »

Could the fact that you clearly struggle with basic spelling (it's "available" not "aviaiable") and typing (the comma and apostrophe keys are not interchangeable) be relevant?

No need for that mate when someone comes on here looking for advice really is there?

StuTheDon

harrystar89 wrote: »

Hi,Thanks for the advise yes I,m on the electoral register,well I,m still paying the loan off,so does that count as Aviaiable credit? I,m fine with paying off the credit card and closing that account,same goes for the store card,And I,ll reduce the overdraft on my account to say £100 as it does come in handy some times,Really The only Aviaiable credit I have would that I dont use would total too £1025, At the mo ,is that bad then???as Doesnt seem that much.as I dont have a morgage etc.Thanks again claire

That might help - have you actually tried applying for a loan yet? You need to remember that multiple applications can actually count against you.

Your best bet for a loan is really your own bank - if they have refused you then you might have to wait a while for your record to reset any failed applications.

CLAPTON

your available credit is just fine... keep things as they are

don't close the CC..in fact using it regularly and paying in full will improve your credit rating

if you are regularly using your overdraft then that is usually seen as some-one unable to manage their financial affairs properly.... so try not to use the overdraft facility

you age, being self emplyed and using your OD too much are probably the reasons you can't get cheap credit

from what you say you have no actual need for a car only a want

so get saving
as a self employed person it's essential to have some savings incase you can't work or whatever... try to build up saving of about 2/3 months worth of income

in any event learn to save first then spend.. life will be much happier that way

harrystar89

Hi,Thanks to both of you for your advise,very kind of you. I Do use my overdraft sometime as being self employed my wages can be up and down! even more so in the current resession,but normally I,m bring in around £1200-£1500 PCM. I havent appiled for a loan in ages,Only a couple of credit cards ,

Both of which I got turned down for,Is it easier to get a loan then a credit card??

I took out recentley a contract phone with Orange and they accepted me straight away!

In regards to savings I agree I do put as much as pos into it,just incase!

And "Moneybags!" I may not be the best speller in the world! But its not because I,m stupied I have learning diffaculties so I cant help it!!but it does not stop me from owning my own business age 20!! started when I was 18!! and bring in a decent wage,owning my own cars,etc etc

So make fun all you want,as Its clear that I may not be able to spell as well as someone age 12 but at atleast I dont Go around throwing dig's,and nasty comments like a 9year old. Grow up!:-P

CLAPTON

because you are self employed it is even more important to try to build up saving so you can handle the fluctuating in come without having to use the overdraft


and the best of luck with the business

harrystar89

Hi,Thanks yeh I agree, with the new car I,m looking to get,it kind of is a need more then a want as my other company car (the one we use for work purposes) has a fault with the engine and as its now 10years old,I figured time to upgrade instead of spending **£*** on getting it fixed. So as I dont want to harm my credit score by applying for loans, Am I more likley to get credit via a loan or finance company????

Or as I got turned down for 2xcredit cards is it not worth me even applying. I dont really want to up my loan with the current FLM loans company i have the loan for £1000 with as there interest rate is 48%!! and its alittle to high to add say another 2k onto!

I,m looking at borrowing another £2000 or around that,as I,ll get about £1000 for the old car even with the engine fault. And the cars I,ve been looking at 2end hand are around £3000 to buy.

Let me know your thoughts please,Also If you can recommend a loan company that has High accseptance rates that would be gr8.

Thanks again for all you help:-)

harrystar89

StuTheDon wrote: »

That might help - have you actually tried applying for a loan yet? You need to remember that multiple applications can actually count against you.

Your best bet for a loan is really your own bank - if they have refused you then you might have to wait a while for your record to reset any failed applications.

Hey thanks for getting back to me, No I have not tried with them recentley,I,m pretty sure they would accept me for a loan of around 2k even tho they turned me down for a credit card!!! does it work differentley the credit scoring between a credit card and a loan??

But problem is because i,m self employed there likley too ask for atleast 2years accounts! I would think,and because we,ve only been running a year I only have 1 years accounts!! annoying,Any thoughts??

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