Credit rating

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Hello! I don't know if anyone can help me.. After being refused a change in credit card I did a credit check on experian and discovered that my rating had gone from excellent to pretty crap! I could not find any explanation for it, I am not in any debt, I do have a credit card that I am currently paying minimum repayment on so altho rubbish as a money saver normally that is a big plus for lenders. I have plenty of evidence to show that I have had credit in the past and not only have I never defaulted but I have never been late with a payment. I am in fairly good job with decent wage so have no idea why this is so. I am not generally a daft person but couldn't really undrstand the paperwork and when I spoke to someone there they coud not explain it either. The only thing that I could think of was that I hadn't been on the electoral roll, I am now but how would that have affected me? I really want to move my credit card to a 0% or at least lower interest rate and get it paid off. I am lucky that I have only a small amount on it but I dont want any on it at all and dont like being rated as a poor lending prospect for no reason! Sorry..very long winded! Please help! x

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  • Tixy
    Tixy Posts: 31,455 Forumite
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    Hi
    Not being on the electoral roll will have a bit impact on your ability to get new credit.

    Which card did you apply for? do you know whether that card check experian or equifax.
    If your current credit card is your only open credit account then it could be that this is reported to only one of 2 of the 3 credit reference agencies.
    Therefore you need to know which file it appears on and to apply for a company that check the same file.

    Do any of your settled accounts still appear as active accounts on your credit files? ie not officially closed, just lying unused?

    Other possibility could be if your current credit is high compared to your income, if your credit limit on the card (and any other credit, overdraft etc that you have) is around 50% or more of your income your chance of getting new credit is lowered, especially 0% cards etc.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • stephane_2
    stephane_2 Posts: 3,076 Forumite
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    Your credit score with experian means absolute peanuts, it is just a generated number. A potential lender will take into consideration many aspect before deciding granting you credit or not (electoral roll, time at address, employment status, income, time with employer, ratio debt to income....) etc... And many other criteria which we will never know. Many people even on high income, low debt and perfect credit report get declined credit so you are not the only one and won't be the last. It does also mean that one credit card provider may decline you while another one may not. If you have only 1 credit search on your report then applying with a different provider will do no harm. You might want also consider checking Equifax just to ensure that all is in order with them as you do have some providers only searching equifax....
  • TFD_2
    TFD_2 Posts: 907 Forumite
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    Hello! I don't know if anyone can help me.. After being refused a change in credit card I did a credit check on experian and discovered that my rating had gone from excellent to pretty crap! I could not find any explanation for it, I am not in any debt, I do have a credit card that I am currently paying minimum repayment on so altho rubbish as a money saver normally that is a big plus for lenders. I have plenty of evidence to show that I have had credit in the past and not only have I never defaulted but I have never been late with a payment. I am in fairly good job with decent wage so have no idea why this is so. I am not generally a daft person but couldn't really undrstand the paperwork and when I spoke to someone there they coud not explain it either. The only thing that I could think of was that I hadn't been on the electoral roll, I am now but how would that have affected me? I really want to move my credit card to a 0% or at least lower interest rate and get it paid off. I am lucky that I have only a small amount on it but I dont want any on it at all and dont like being rated as a poor lending prospect for no reason! Sorry..very long winded! Please help! x

    What makes you think only paying minimum payments is a big plus for lenders? This could look like you're struggling.

    How does your outstanding balance compare to your credit limit? If you're using a large percentage of your available credit, this can scare them also.

    If you're not on the electoral roll, this will definitely count against you, and would likely have been at least a factor in the decline.
  • Hi again! Thanks for all your replies..
    Tixy- I will check through some of the suggestions you made, I hadnt considered some of them so thanks for that. My current credit is very small compared to my income so I would be surprised if that is a factor. My only debt is on my card and the only other thing I have is an overdraft which I don;t really use.
    Stephane- Thanks for your info, it is very frustrating to not know why I a being declined. In the dim and distant past when I had been declined I had been told that it was due to previous tennants had been bad debtors so the address was "bad". This had been confirmed by bailiffs turning up at the door for them, although I am told that it is rare to take the address itself into account now on that basis. I will certainly have a look at Equifax aswel and see what is going on!
    TFD- Thanks for your reply. I have been told by a number of people in the past, including one financial advisor, that credit companies love people who pay minimum repayments. This apparently signifies to them that it is someone who is probably not going to default but who is obviously racking up huge amounts of interest which is what the companies like. I think my outstanding balance is quite small, my limit is 4,500 and my outstanding balance is 600. I am now on the electoral roll so I hope that will make a difference along with the information you have all provided!
    Thanks again x
  • stephane_2
    stephane_2 Posts: 3,076 Forumite
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    I would like to re-assure you that there are no such thing as black listed addresses, credit is always granted based on the name of the person & his own credit history and not an address. As TFD said, making only the minimum payment would not be in your best interest, especially these days when a lot of lenders report exactly how much you've paid towards your debt on monthly basis so if they see that they might think that you are struggling paying more.
  • JohalaReewi
    JohalaReewi Posts: 2,614 Forumite
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    stephane wrote: »
    I would like to re-assure you that there are no such thing as black listed addresses, credit is always granted based on the name of the person & his own credit history and not an address.

    Although if you are financially linked to another person (or persons), their credit history could be taken into account too.

    As a money saving tip to all.
    Don't pay good money for Experian/Equifax/whoever's so called credit scores. These companies don't offer credit so they are not credit scores, neither do these scores get passed to potential lenders, so don't waste your cash on them.
  • choppermassive
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    I have a question about my credit file and cant see where to post it on the forum.....

    I have recently found some incorrect info on the credit file. I have asked Equifax for it to be amended, they, rightfully so have requested that I obtain a Certificate of Settlement for the company in question. I have asked the company for the info but they don’t seem to have it on file. This account was over 6 years ago (Apr 2003) however the credit file says that the account was only settled in Mar 2005 (this date being incorrect) I have no paperwork from the company to prove otherwise. How do I force the company in question to prove otherwise and what am I within my rights to do I am stuck in a limbo situation that is scoring down my credit score?


    Can you help?
  • Tixy
    Tixy Posts: 31,455 Forumite
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    Financial institutions are requiredto keep information on file for 6years, if they don't have the info then that in itself should prove to them its over 6years ago.

    What sort of account/debt was this? When you asked for it do you mean you wrote to ask for it or you asked by phone?

    Does this account show defaults/late payments etc? If it doesn't then it won't be affecting your ability to get new credit.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
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