Denied credit, but (fairly) high income, no faults

joehoyle

Hey Everyone,

I see a lot of people struggling to get credit in the forums - as lots of other people I am getting very frustrated with being refused credit. However, I really don't understand why - to me it seems like a catch 22, to get credit you need a credit score, and visa versa.

Apparently, the assessment on credit does not seem to go on income whatsoever. I don't know if it is my age - or the fact I have had a few addresses but I would have that I would be the kind of person the lenders would want to lend to.

In a nutshell I am:

Age: 22
Addresses in last 2 years: 3
On electoral roll: yes
Yearly income after tax: 36,000
Bank Balance: about 32,000
Credit Cards: 1 (a very bad card I managed to squeeze from barclaycard, £250 limit)
Bank Account: Barclays, about 10 years

I currently have a credit rating of 686, I have tried applying for Vanquis card, granite, capital one, aqua. Capital once rejected, granite & vanquis never got back to me (twice, I tried applying again after they never contacted me).

I have no defaulted loads / credit or anything on my credit report. Under Credit accounts on my credit report it only shows British Gas and Barclaycard, though I have a phone contract, internet, Eon electricity etc (not sure if they should show up?)

Ofcourse, I don't actually need any credit - my plan was to try and increase my rating because it's likely I will want to be buying a house 1 - 2 years perhaps (though at this rate, I can't even get a cc!)

Is there something I am missing here? I would have at least thought Barclays would give me a decent amount of credit, as they can see my damn bank balance!

I have seen a lot of people advise to wait 6 months and try again - but 6 months is agessss (at least seems like that for me). Are they not any very effective if costly ways to bump my credit score?

EllaBeagle

Maybe your credit file is too thin which I understand can be frustrating for you as in order to get credit in future you'll need credit now. When you have been refused, write them a letter to appeal and explain your situation. Worth a try.

reclusive46

Well after applying for all those credit cards. I'd leave it for a year. And never apply for a credit card more than once. Even if they don't get back. Thats even worse! You should have contacted them.

I'd leave it a year. Manage your BC well and then try and apply for one card.

CLAPTON

do you actualy use your barcalycard?

do your credit record show that you are on the electoral roll

JamesWMH

Waiting six months should be a doddle, if as you say you've got £32,000 in the bank, you obviously don't need the card to make large payments to pay off after a while. It'll take time to build it up.

You can also get a pre-paid credit card for about £5 I think, I believe that will help your credit rating.

chanz4

22 year old with £32k in the bank, is this a wind up?

chattychappy

chanz4 wrote: »

22 year old with £32k in the bank, is this a wind up?

Possible, it could be inherited.

When I was 22 I had more in the bank and a higher income than I did 20 years later. (And that wasn't inheritance... just a very well paid job which I "screwed" as part of a joint venture , a savings obsession and living with parents. Eventually I lent my parents the money so they could get divorced and charged them rather nasty interest!)

chanz4

fair enough, is possible but very unusual.

skintdad

chattychappy wrote: »

.... and living with parents. Eventually I lent my parents the money so they could get divorced and charged them rather nasty interest!)

do your parents still talk to you?

alanq

JamesWMH wrote: »

You can also get a pre-paid credit card for about £5 I think, I believe that will help your credit rating.

As far as I am aware this is not the case. Why would it be? A prepayment card does not offer any credit and no credit search on ones CRA file is required to get one.

It is even possible to get one without an identity check search on ones CRA file provided it is for a type of card with a small maximum balance and small maximum spend rate. These limits are in place to counter money laundering.

mgarl10024

chattychappy wrote: »

Eventually I lent my parents the money so they could get divorced and charged them rather nasty interest!)

skintdad wrote: »

do your parents still talk to you?

chattychappy wrote: »

Eventually I lent my parents the money so they could get divorced [from me] and charged them rather nasty interest!)

Just a clarification.