Turned down for car finance because I'm not British citizen?

guli

star-fire wrote: »

Your talking nonsense mate,if you apply for credit they look at your profile and yours only..nothing to do with previous occupants..

Actually, I agree with you on this, but lately, I've been doubting how exactly credit scorings are done by different financial providers.

In reality, one of the key inputs to any credit application is your address+postcode, including previous addresses if less than 3 years.

We know that councils/government bodies do "grade" electoral wards and thus postcode too, and provide a socio-enonomic picture of each ward and its subset, including financial standings, income, crime rate, etc.

What is to stop any financial to weigh in these findings into their credit scoring, since postcode is your input? There is no clause that say they will, or will not use this available information to credit score an applicant, is there?

I don't think anyone of us here (who are not the credit underwriters) know exactly how credit scoring are done (or why/how much they are different with different financial instutitions) , other than that, when a credit search is performed, some form of weightings based on your application inputs are executed (the exact weightings are different and unknown).

We all certainly know that car insurance changes dramatically on postcode, based on available crime rate and stolen/damaged cars that happened historically in the postcode / electoral ward.


We also know life/health insurance/assurance also weigh in not only past medical history (yourself) but also your parents and grandparents health/cause of death - it's all about probability to the car or health insurers.

The same can be said on house insurance with postcodes of area having a likelihood to flood or subsidence or high burglary or having a high claimant count relative to other postcodes - their premium are usually higher.

I know the examples I quoted are in the insurance sector, but this is not highly different to the credit sector (affordability rating for a mortgage/loan application), where they will weigh in the probability of the applicants' capability to fulfill the repayment requirements etc, chance of defaulting etc.

Surely, it's all actuarial science in deciding the probability of person x to defaulting (bankrupt), for example, if he lives in a postcode of 100 houses, with 10 houses with people in it having defaulted in the past 3 years and 75% students who lives in the houses < 1 year on average, etc etc.... than when it is compared to living in a postcode of 100 houses, with 60 houses having mean income above 70k and 80% are family with long credit history at the addresses?

Birds of a feather and all that lumping clumping stereotyping..

Just my 2p

Again, I still think the financial institutions are looking only at the applicant's profile and only theirs, and not previous occupants.

Conspiracy theory, anyone?

Unless, anyone here can provide via FOIA the exact way credit scoring is performed, this theory is not improbable, just highly unlikely.

terryw

OP

Make sure that you are on the voters list and have a landline phone. These are important as they show stability.

Check your credit files with the three main credit reference agencies.

If you have have not had credit before, take a small amount with, for example, a mail order catalogue, book club, phone contract.

As indicated, previous occupants or neighbours do NOT affect your credit rating. I doubt if being a non-uk national would affect this - I know many people of different nationalities who have obtained credit for vehicles including taxis.

Make a note of my user name in case you ever working traffic and stop me! Thanks

BugsyBrowne

My friend live on a council estate,and some of the people on there ain't to sharp to be honest,but he has decent credit cards,probably because all his life he has been going to work and paying back the money he owes..i will tell him to ignore his neighbours from now on because in the future because of them he might not be able to do a balance transfer..

jw30

guli wrote: »

Actually, I agree with you on this, but lately, I've been doubting how exactly credit scorings are done by different financial providers.

In reality, one of the key inputs to any credit application is your address+postcode, including previous addresses if less than 3 years.

We know that councils/government bodies do "grade" electoral wards and thus postcode too, and provide socio-enonomic picture of each wards and its subsets, including financial standings, income, crime rate, etc.

What is to stop any financial to weigh in these findings into their credit scoring, since postcode is your input? There is no clause that say they will, or will not use this available information to credit score an applicant, is there?

I don't think anyone of us here (who are not the credit underwriters) know exactly how credit scoring are done (or why/how much they are different with different financial instutitions) , other than that, when a credit search is performed, some form of weightings based on your application inputs are executed (the exact weightings are different and unknown).

We all certainly know that car insurance changes dramatically on postcode, based on available crime rate and stolen/damaged cars that happened historically in the postcode / electoral ward.


We also know life/health insurance/assurance also weigh in not only past medical history (yourself) but also your parents and grandparents health/cause of death - it's all about probability.

I know the examples I quoted are in the insurance sector, but this is not highly different to the credit sector (affordability rating for a mortgage/loan application), where they will weigh in the probability of the applicants' capability to fulfill the repayment requirements etc, chance of defaulting etc.

Surely, it's all actuarial science in deciding the probability of person x to defaulting (bankrupt), for example, if he lives in a postcode of 100 houses, with 10 houses with people in it having defaulted in the past 3 years and 75% students who lives in the houses < 1 year on average, etc etc.... than when it is compared to living in a postcode of 100 houses, with 60 houses having mean income above 70k and 80% are family with long credit history at the addresses?

Just my 2p, again, I still think the financial institutions looking at only the applicant's profile and only theirs, and not previous occupants

Conspiracy theory, anyone?

My point was to help the OP post as I know from my own experience I applied for car finance at my old address declined. I applied at my new address and have been in my new job only 9mths and was approved for a 58 plate car, I wasn't even on the voters.

I didn't have to put down any extra deposit or anything. The post code is a big key, at my previous address I was declined for top bank accounts and 0% credit cards.

At my new address out of 12 applications in 11mths I have been approved for 10 of them only bank of cypress and bank of ireland declining me.

If you keep getting declined move to an new address in an prosperous area and you too will soon find out what impact it has on your ability to obtain credit.

guli

Is this like NHS postcode lottery?

jw30

Where I live it is a lottery! If I walk to the other side of my street it is wales, on my side of the street it is england.

The welsh side get cheaper council tax bills, no prescription charges etc and on the whole are at least £2-3k less to buy a house on that side of the street.

BugsyBrowne

Ok lets finish this and say you and your credit file is really really important the most important,checking if you are paying bills on time no missed payments,no defaults or ccj's but also your address may have a role as well..

guli

Where I live is a "lottery" too, I walk < 0.5 miles, there are no postcodes!

In fact, it's a different country altogether!

Typhoon2000

Stange I dont think I have ever been asked by nationality when appling for credit and my nationality is not stated on my credit report from Experian or Eqifax. Just looked up a the online credit card application for AmEx (only because you can see proceed to the subsequent pages to see all the questions without actually filling anything in.

woody01

jw30 wrote: »

Your very wrong there it's your post code that matters if your neighbours are late with payments, have ccj's and the like that affects you as much as your own personal account history.

I know I moved into a rented house applied with Lloyds TSB all I got offered was a cash account, checked my own file & it held cifas information on previous occupants who came from poland and hungary.

I had no financial link in fact I never met them. I read all the information saying it's not your address it's you etc etc.

That was back in 2007. I then changed my name by deed poll and moved into another address earlier this year starting again. The new address was a fairly new estate, but only occupied by pensioners until my landlord bought it in 2008.

I wasn't even registered on the voters and got a JD Williams account, waited around a month and still wasn't registered to vote I opened a full account with Barclays Premier Bank account with guarantee card, £250 overdraft, cheque book etc.

One month after that I applied to Lloyds and had just been confirmed on the voters I applied and was offered the top account Premier £250 cheque guarantee, cheque book, again £250 overdraft.

Then earlier this month I applied for an accessory card and was accepted with a £400 limit, and four days account I was approved for a IPHONE mobile contract with Vodafone £45pm.

Anyone who tells you it's on the person is wrong credit scoring is based on a number of factors which all amount to a score, but If you live in a house share/rented house and previous tenants have abandoned the house leaving bills etc you will never get accepted.

In short your post code is the main thing not the person which I found very fustrating as I have perfect 2 year history never being late on anything, but due to my post code I was getting either straight decline or referred then even after sending supporting documents getting declined.

Sorry, but that is total sheite.
If you don't have any facts then why bother