Declined but good credit

Pyronaut

Seems a little backwards but i recently questioned a loan provider about why the interest was so high, and actually got a reasonable answer as opposed to smoke and mirrors that most folk put over it.

Anyway i check my credit score and gave him a ring
<FI - my C.Score 940>

And was told that the reason my interest and declined rate is so high is because i am a risk, only for the fact that i have no recent loan history*
*Wonga, PDay loans dont count! Infact they can count against you on credit searches as they are classed as Crisis loans!:eek:
So therefore thanks to the fact that i havnt had to borrow, im not actually going to have much success.

For those in a similar situation or have experienced this, what was your solution to the matter?

What i have decided to do/try/go with.

Tighten your belt for a few month (min 3) whilst been part of the credit union or not. Try to keep P.Day loans off you account during this time too, but understandably this isnt always easy.
Keeping your bank balance within the agreed limits, preferably a positive balance, and try for a small loan of 1k with either your bank or the credit union*.

*pick one if you fail try the other next month to reduce check damage on your file*

Take it on and pay it off ASAP (after all you now have 1k in the bank)

This will boost your credit score well sort of it will allow you to benifit from you credit score by creating a recent credit history and therefore reduce/elimitate the problem of been rejected for no credit History despite having a good credit rating.:D

Tixy

If you are struggling to get credit due to a lack of decent credit history most people advise trying to get a subprime credit card and using that and paying in full every month so you don't pay expensive interest but will show you are able to handle credit responsibly. After 6months or so you should stand an improved chance of being accepted for something else (assuming you pass all the other criteria the potential lender has - eg affordability etc).

And don't take out anymore payday loans at all.

And stop paying for credit scores which are a waste of money, its what is on your report that is relevant - and you can check that for just £2 a time.