Why is my credit rating so bad??

prout

Hi,
I was wondering if anyone can advise me. I have tried twice in two years but Tesco's won't let me have a credit card and tell me each time this is because of my "credit rating". I have had problems in the past too to get my electricity paid from "pay as you go" to monthly direct debit (sorted now but again they blamed my credit rating)
Yet:
* My only credit is my £500 overdraft
* I have no credit card (I used to but paid them back in full and cancelled them. Only used them up to £400.)
* I am registered on the electoral roll, I have a landline and I have been living in the same place for over 2 years now
* I earn a good wage as a supply teacher on a permanent contract
* I have no problem paying for my bills although I have defaulted on Council Tax payment a lot (mainly because I am foreign and it took me a long time to understand what I had to pay and how I had to proceed if that makes sense.
* I have been living in the UK for the past 6 years and have passed the "habitual residency" test requested by the Jobcentre (I sign up to JSA during the Summer holidays for 6 weeks unless I can find a casual job. Supply teachers aren't paid in ther Summer + during school holidays in general).
Any idea on what I can do to help my credit rating improve?

opinions4u

prout wrote: »

I was wondering if anyone can advise me. I have tried twice in two years but Tesco's won't let me have a credit card and tell me each time this is because of my "credit rating". I have had problems in the past too to get my electricity paid from "pay as you go" to monthly direct debit (sorted now but again they blamed my credit rating)
Yet:
* My only credit is my £500 overdraft
* I have no credit card (I used to but paid them back in full and cancelled them. Only used them up to £400.)
* I am registered on the electoral roll, I have a landline and I have been living in the same place for over 2 years now
* I earn a good wage as a supply teacher on a permanent contract
* I have no problem paying for my bills although I have defaulted on Council Tax payment a lot (mainly because I am foreign and it took me a long time to understand what I had to pay and how I had to proceed if that makes sense.
* I have been living in the UK for the past 6 years and have passed the "habitual residency" test requested by the Jobcentre (I sign up to JSA during the Summer holidays for 6 weeks unless I can find a casual job. Supply teachers aren't paid in ther Summer + during school holidays in general).
Any idea on what I can do to help my credit rating improve?

You credit record goes back 6 years. Anything derogatory on your file in the last 6 years will diminish your ability to obtain credit.

Time is your best bet.

(That said, there is something good about saving up for things and not needing credit).

reall

hi
Some companies are more difficult to get credit from than others.i would suggest phoning them and asking them what is their criteria for acceptance.maybe for tesco they have a minimal income (salary),no problems current and future.
i would suggest get up to date with council tax as it is a priority debt (fines,court,imprisonment) and then continue being up to date with house (rent/mortgage/council tax),utility bills(gas/electric/water rates/telephone) and make sure you obtain a copy of your credit report from the three credit reference agencies such as https://www.experian.co.uk https://www.equifax.co.uk and call credit https://www.callcredit.co.uk costs about 2.00 each for a copy of your credit report. make sure the information is accurate about you and your previous and new commitments.secondly a prepaid card such as cashplus has a credit builder card basically you pay the monthly sum due on the card for 12 months and they send the information to the credit reference agencies .https://www.cashplus.co.uk?. You can check your file from a company .it costs 2.50 one off fee for a lifetime and it is updated 0nce a year but can give you access online today https://www.onlinecreditreport.co.uk.
Do not apply for too many credit at one time as this affects your report; as they search your record this includes applying in shops,online etc.
see it from the lenders viewpoint.if we are unable to take care of the essential as above how will we deal with the extra.
hope this helps
reall

reall

soory made a mistake it was https://www.annualcreditreport.co.uk and not https://www.onlinecreditreport.co.uk.
reall

reall

oh perhaps you could consider ways to reduce using your overdraft slowly eg. in 50.00 increments or find ways to get a better paid job so that you can rely less on job seekers allowance during the long summer months eg.private tutoring.perhaps work in after school clubs as a youth worker so you will be employed.
from reall

prout

I don't need this credit card to purchase anything but I want it to earn more points and get free home delivery with Tesco's!!
In the last 6 years I have never had anything that could have damaged my credit rating apart maybe from the £400 on a previous credit card but I repaid it within 4 months...
In the same way, I did my MA abroad so I have no student debt... not sure what the problem is!

prout

I agree completely about my overdraft, I have been really silly needing an overdraft as I earn good money (my monthly wage is X2 compared to the admin job I was in before but think I have got a little bit too much used to spoiling myself and having weekend away with my fianc! and trips abroad etc. I Need to cut back on all this too.) I do lots of mystery shopping and bits and bobs where I can too so I should have enough and not need an overdraft.
I am unemployed at the minute (until next week lol, an admin problem with my agency... too complicated to explain).
When I am back to work I will definitely get rid of this silly overdraft. I have paid off my second one so need to do the same with this one.
I just wanted the Tesco credit card to earn points + get free delivery + save the money spent at Tesco's for the monthly interests before paying my balance each month by DD.

prout

I am always up to date with bills and rents... and Council Tax will be sorted once I am back to work next week.
I have also seen my Experian Credit Report and there is just nothing in there, as in, literally nothing good or bad just nothing!!!!!!

Rednoseranter

A 'lack of credit history' can also be a problem - there may not be enough information on your credit history for them to make, in their opinion, a proper lending decision. Get a copy of your credit file, if there is nothing adverse on there, then it just may be that there is not enough on there - seems perverse but unfortunately thats the way it works.

I also don't think it shows whether your are in or out of work/type of work etc, it shows instances of where you have and have not made payments on time - it also shows instances where other credit providers have undertaken searches on your information e.g. if a file shows lots of multiple searches in a short space of time by different lenders but no corresponding lending taking place it shows that the customer is credit hungrey at that time and that they have been rejected for that credit - which has the effect of scaring lenders off.

prout

"a prepaid card such as cashplus has a credit builder card basically you pay the monthly sum due on the card for 12 months and they send the information to the credit reference agencies".
Great idea thanks!!!!!

prout

Rednoseranter wrote: »

A 'lack of credit history' can also be a problem - there may not be enough information on your credit history for them to make, in their opinion, a proper lending decision. Get a copy of your credit file, if there is nothing adverse on there, then it just may be that there is not enough on there - seems perverse but unfortunately thats the way it works.

I was told that when I changed from a prepaid elec meter to a DD paid one... it is daft but think I will try Reall's suggestion to improve things.