Credit Ratings a Joke ??

Bigdibz

I've spent the last year or more cuddling , nurturing & breast feeding my credit rating in the hope to apply successfully for a loan for a new van for my business .
Currently my credit rating is excellent .
You'd think with an excellent no issue's there , loan companies would be licking my feet and spinning the yarn over the phone to me on how wonderful they are and why l should use them .
Not the case if your self employed and renting !!
So why bother worrying about a credit rating if you are in fact a council tenant and self employed ?, is the question l,m asking today .
Excellent credit rating , no ccj's , no late payments , business is pretty much successful with no debts , been with my bank for over 20years and same adress for over 10years .
Am l applying for too much ? , not at all . A grand sum of 5k is all , and according to creditexpert lowermybills .
All l'm entitled to is a cash payment from Provident with an apr higher than my blood pressure .
So .......... can someone please explain to me the point of credit ratings ? , unless of course your a homeowner willing to sign up to half a dozen credit cards and several loans secured on your home .

Tixy

By credit rating - do you mean a credit score or your credit history?

If you mean the score that the credit reference agency will come up with a fee then there is no point to them at all. These are not based on all the information a lender will take into account - as you mention above, so are pretty useless. Demonstrated by the fact that there are many people with a score of 999 who have never had any credit products at all and so are unable to get anything except a very small subprime credit card.

If you mean your credit history/credit file then obviously that needs to be as good as you can make it, but any potential lender will still look at all the circumstances such as your self-employment and take those into account as well.

leveller2911

I agree with Tixy but would just add that being self employed should not be seen by the lenders as a higher risk,it just ins't provided people have more than a couple of years accounts.

Being employed in the 21 century people have no more security than any self employed person.In fact I would say self employed people tend to work a fair bit harder and are more pro active .

Bigdibz

Thankyou for your responses .
To answer your questions Tix , it is my score and my history that is perfectly fine .
I have had credit in the past , so l do have a history .
I.E.
Find a website that asks your criteria and amount you wish to borrow .
Place that your in f/t employment and a homeowner and the options are wide and varied .
Place that your self employed , or even a non homeowner . And oh boy start putting those pennies away into your piggy bank .
They didnt even ask how big my business was , how much collateral & equipment to the value of . Even told over the phone self employed makes you a bad risk
Penpushers !! , who'd have em !!! :rotfl:

iolanthe07

The banks regard homeowners as a better risk because, even with an unsecured loan, if you default they can apply for a charging order against the sale of your house so will probably get back their money eventually. It is not fair on tenants who don't default, but that's life.

BoGoF

You paid for the Experian credit 'score' and they deemed you excellent?

Problem is they are not the one's lending money. The score means diddly squat and it's a pity you didn't discover this site before. There are dozens of 'my score is 999 but can't get a loan' posts.

Harsh reality is that it is more difficult to get credit these days

suburbanwifey

Bigdibz wrote: »

I've spent the last year or more cuddling , nurturing & breast feeding my credit rating in the hope to apply successfully for a loan for a new van for my business .
Currently my credit rating is excellent .
You'd think with an excellent no issue's there , loan companies would be licking my feet and spinning the yarn over the phone to me on how wonderful they are and why l should use them .
Not the case if your self employed and renting !!
So why bother worrying about a credit rating if you are in fact a council tenant and self employed ?, is the question l,m asking today .
Excellent credit rating , no ccj's , no late payments , business is pretty much successful with no debts , been with my bank for over 20years and same adress for over 10years .
Am l applying for too much ? , not at all . A grand sum of 5k is all , and according to creditexpert lowermybills .
All l'm entitled to is a cash payment from Provident with an apr higher than my blood pressure .
So .......... can someone please explain to me the point of credit ratings ? , unless of course your a homeowner willing to sign up to half a dozen credit cards and several loans secured on your home .

Your problem is that you are renting ie: if you default, the lenders cannot get a charge on your house as a way to get their money back...people who are renting will suffer greatly with getting credit in the current climate, too much of a risk. That is your sole problem. Regardless of a 'great' credit rating or credit history, there is no security with someone who is renting.

BugsyBrowne

suburbanwifey wrote: »

Your problem is that you are renting ie: if you default, the lenders cannot get a charge on your house as a way to get their money back...people who are renting will suffer greatly with getting credit in the current climate, too much of a risk. That is your sole problem. Regardless of a 'great' credit rating or credit history, there is no security with someone who is renting.

Sorry but bullsh*t his problem is renting why he was turned down,I work with people in the building trade who of which someone I work with and also renting applied for a MBNA card the other week and got a 9k credit limit,don't know what his credit report but must be pretty good to get that limit.
Why did Provident come up on the OP's lower my bills on experian,I think the OP should check his report again TBH, there must be something on his report for lower my bills to give him Provident as the most likely he would be accepted for.

Bigdibz

Well l did change my circumstances re: renting to homeowner , and l only recieved 1 option to loan , but when l changed my option from self employed to full time employment . The options greatly increased .
So it is a case of being self employed that is the main issue here .
Also l have learned today that having a 999 credit score means squat .
Also l have to agree with star-fire .
I knew a guy who had his home reposessed , lived with his mum in rented property , and was unemployed . They gave him a 2k credit card .
I have checked my credit history , nothing showing . And seeing as l currently own 1 credit card thats way below its limit , not overdrawn on my bank account and no loans or hp . It all
points to self employment .

suburbanwifey

suburbanwifey wrote: »

Your problem is that you are renting ie: if you default, the lenders cannot get a charge on your house as a way to get their money back...people who are renting will suffer greatly with getting credit in the current climate, too much of a risk. That is your sole problem. Regardless of a 'great' credit rating or credit history, there is no security with someone who is renting.

That's good to hear, as I do not think people who are renting should be victimised by lenders, as a lot of them pay more in rent than a lot pay for a mortgage!

I'm surprised at MBNA though...the building trade is precarious at the moment (especially if self-employed) with the recession and so many building companies going bust and also they do like to chase people with charging orders, they are the most 'famous' for it lol

Lucky guy, good limit when he rents and is in the building trade.

BugsyBrowne

suburbanwifey wrote: »

That's good to hear, as I do not think people who are renting should be victimised by lenders, as a lot of them pay more in rent than a lot pay for a mortgage!

I'm surprised at MBNA though...the building trade is precarious at the moment (especially if self-employed) with the recession and so many building companies going bust and also they do like to chase people with charging orders, they are the most 'famous' for it lol

Lucky guy, good limit when he rents and is in the building trade.

Yeah totally agree the building trade is not at a high by all means, I suppose when lenders lend to anyone its always going to be a risk.