When to re-apply for credit

Jlbjones

I don't understand - I have an Experian credit score of 877, which is 'fair' but on the very cusp of 'good'.

I moved house in Oct 09, which reduced my score, annoyingly, though lived at my previous address for ten years.

I allegedly 'defaulted' on a current account for two months 15 months ago (the reality was I went over my overdraft limit by about £10 on those occasions), but have no other defaults listed. Equifax show these two months on their file, however Experian do not. I checked the Equifax credit scoring, and I was again 'fair' and on the cusp of 'good' - so it would seem I am generally considered financially healthy, I should assume.

So, I don't understand why I was declined for the following:

Student account with RBS - last October.
(I provided all correct ID - staff were happy with documentation, and were aware I suited their terms and conditions - accepting I am a full time worker and part-time student).

Today - credit card with Santander to pay off £3300 with a balance transfer on my MBNA credit cards.

I am now worried about applying for anything else, in case the application footprint reduces my score further. On my credit reports it says my application status is 'good' - meaning that I've not applied for too many things. But will applying for another credit card tip the balance?

Do you have any recommendations?

One other thing: should I admit I want the card for balance transfers, or should I stay silent? It occurred to me that I might be seen as too careful, not making the credit card company any money. If I'm the 'sensible balance transfer shifter', is there a chance they won't like me? Should I imply I just want to spend, spend, spend, instead?

My salary is £27,150. I am an art curator. I rent.

BugsyBrowne

Unfortunately with a default on your file you will classed of having a very poor credit score.

Jlbjones

But I don't have a "poor" credit score; I have a "fair" credit score. And I don't know if it is a 'default' as such - I just went overdrawn by a small amount many months ago...

any other suggestions?

BugsyBrowne

Jlbjones wrote: »

But I don't have a "poor" credit score; I have a "fair" credit score. And I don't know if it is a 'default' as such - I just went overdrawn by a small amount many months ago...

any other suggestions?

NO Experian gave you a fair credit score,what has their score got to do with it?
Experian do NOT lend money mate so their credit score is completely irrelevant.

Tixy

You should easily be able to tell if you have a default. Is it shown as 2 missed payments in the account history or is it shown that the credit account has a default registered (which would be given a specific date).

What existing debts do you have? anything else in addition to the £3300? what unused credit do you have?

Jlbjones

Starfire - but it's the CREDIT REFERENCE agencies who provide the details of your credit history to the credit card companies (who else does?!). They perform a credit check, then say "computer says no" in a dullard way. I want to know why "computer says no".

Have you found your way to the wrong web site perhaps? This is about banking and consumers and involves things like credit reference agencies and banks ;-)

Jlbjones

Tixy - thanks for this. I guess I did 'default' then. Annoying...

My total debts are not that large (well, I don't think). I owe a total of £4600 including my overdraft and credit cards. No other debts after this.

Jlbjones

Tixy - sorry, re unused credit: apparently I am using 44% of my credit, however this doesn't seem accurate to me - I know I'm using my full overdraft limit, nearly the whole limit on one credit card, and half on the other (£1661 out of £3500).

Re default - I now know I haven't 'defaulted'...it's just that 2 payments were 'late' - according to Experian. So not a default... Confusing on these reports at times!

Jlbjones

Star-fire - so, are you saying that all credit scoring is fiction? Then what do the banks use? If the reference agencies were kidding us, wouldn't this website say so? I doubt Martin (or whoever he is) would keep up the pretence simply to line the pockets of those agencies - it defeats the point of the whole site, surely!

Jlbjones

star-fire my msg disappeared!

OK - so you think the credit ref agencies are just taking our money for the scoring/reports and doing nothing with the scores? Is this what you're saying?

Why would anyone on this site then tell you to check your score/report?

And now I realise I didn't default - I was just a day late with two payments. Report mentions I was "not significantly late" but that this "may affect" my score...

BugsyBrowne

Jlbjones wrote: »

Star-fire - so, are you saying that all credit scoring is fiction? Then what do the banks use? If the reference agencies were kidding us, wouldn't this website say so? I doubt Martin (or whoever he is) would keep up the pretence simply to line the pockets of those agencies - it defeats the point of the whole site, surely!

I am talking about you and your imaginary credit score from Experian it is waste of money,banks do not know what experian have scored you and they wouldn't give a to*s either,lenders will all do their own credit scoring..

Ps no one on this site would ever tell you to check your score,but they will tell you to check your report!!!!