Credit Score Help

Karl_Cross

Wasn't quite sure what section to put this in so I apologiose if this is out of place.

I have just recently applied for a loan with my bank to purchase a car and was declined. For some reason I cannot seem to get credit anywhere. In the last year I have applied for credit on about 5 occasions and been declined each time. I have even been declined for another bank account with my own bank and have had to make do with the most basic account! I did my own Experian credit check and it came back advising that I have a poor credit rating! Now, I have only ever had credit on 3 occasions. Twice I have taken loans out with Provident; both of which have now been paid back in full. I had no issues what so ever with missing payments with either of these loans. There was an issue a few years back where I had an overdraft on a student account after I dropped out of education and was unemployed for around 6 months, so payments could only commence on this one I started working. One I established payment they were paid on time every month and have now been paid off in full.

I am a 23 year old bloke and I still live with my parents. I work full time in the public sector. My mother has a very very bad credit history and ended up paying a "trust deed" or something due to her bad history. Could this go against me as I live at the same address?

Also, despite Experian giving me a 'poor' score, the report says that I make all my "repayments on time and in full" and that this is having a POSITIVE affect on my score!?

Any help much appreciated, I feel as if I cannot get my foot on the bottom rung of the ladder.

Tixy

Hi

You need to look at your detailed credit report - not the score or category that one of the credit reference agencies put you in but what is actually showing on your full report.

Your overdraft may show a default on your report - if it does this stays on for 6years from the date of the default and will make getting credit difficult. Check your report under credit account information/history.

Are you on the electoral at the address you live at? Does your credit report show that you are?

Your parents credito history will not affect yours at all (well unless you are shown as financially linked to them on your credit report if you've had joint financial products with them in the past - again check your report under financial associations).

Aside from the possible default on the overdraft it could be that you are suffering from a lack of credit history rather than anything else - the fact that you have no current credit products means that lenders have no idea how likely you are to pay back any credit they give you - if this is the case then read this article about starting to build up a credit history. You'll probably need to start with a sub-prime high APR card so ensure you only use it to improve your rating - always pay off in full each month so you never pay interest.
http://www.moneysavingexpert.com/loans/credit-rating-credit-score#improve

That said a bank loan for a car is likely to be out the window for a while. Instead can you start saving the money you would have used in loan repayments for a few months until you have enough to buy a cheap runaround?