Why on earth can I not get credit?? Help!! (long story)

robyn1991_2

I turned 18 right as the economy went to pot, one of the first things I did was apply for a phone contract. The country was in financial meltdown, so of course I was not granted a contract. I applied and applied and was just continuously refused. (Now I know constantly applying was a bad idea...)

Over the next two years I applied for a credit builder card and was refused. I applied for tesco card, was refused, applied for a laptop contract, was refused, applied for an ARGOS card, was refused. (can you sense a running theme??)

I applied for an 18 month broadband contract with BT and was accepted! Woohoo! On the condition I paid a £50 deposit, which I happily paid.

Then I applied once again for a credit builder, was refused. I applied for an overdraft on my bank account and was accepted!
I then got car insurance, and after that applied for an O2 contract, which I was accepted for after paying a £100 pound deposit. I applied once more for a tesco card (I should point out I was carefully leaving 3 month gaps between applications) and was refused.

My overdraft was the only thing I was getting accepted for, so I relied on that to get me through the harsh winter months of 2009/2010 when there was no work for me (I was a self employed window cleaner, on a high wage if the weather was good but no work in the winter)

As a result of the horrendous weather I ended up maxing out my overdraft to its full capacity, currently I am £1150 into a £1200 overdraft, as I have not been able to get myself out of it yet.

I finally got round to checking out my credit report (with noddle), as I haven't got round to doing it up till now. I'm shocked, really shocked....

it says:

Financial connections
Details of who you share a financial connection with.

You have no financial connections on your report.

Bankruptcies and Insolvencies
You have no Bankruptcies or Insolvencies recorded on your report.
Judgments
You have no Judgments recorded on your report.
You have no Notices of Correction recorded on your report.
There are no CIFAS warnings registered at your address(es).


It also says I'm 1/5....How on earth can my rating be so low when I have nothing 'wrong' with me?? Aside from my overdraft, how come I can't get even a simple phone contract without it being a massive pain in the butt? I can't even get a CREDIT BUILDER!??

What the hell do I do?? I'm hardly after getting myself a nice juicy loan, all I want is to be able to get broadband or a phone and stuff without all this crap Help!!!

steve1980

Scores mean nothing!

Right, now I've got that off my chest.......

The economy going to pot has nothing whatsoever to do with you not getting any credit.

You turned 18 and instantly applied for a credit card, you had no history for a lender to look at, of course you're going to get declined!

Who did you try for a phone? Some providers won't touch an 18 year old with a bargepoll. You picked the wrong telecoms company, that's all.

Two years later.....and still no credit history, just a lot of searches....Tesco card (owned by MBNA) you NEED to have a credit history. Simple as that. Laptop loan, again, still no history...pattern forming.....Argos, you've guessed it...want some history!

Your bank will give you an overdraft as they would have seen how you operate the account, your history is working in your favour now.

The BT & O2 deposit was payable because you were probably a few points below their automatic acceptance levels so they were happy to take you on but wanted a bit of money up front just in case you defaulted.

Now the problem arises that you are self employed, as you've found out, it's hoop jumping time, want some credit? Say the magic words of "Self Employed" and that's it, accountants records, business bank statements and of course your soul is required.

As you're so far into your overdraft, from any lenders point of view you struggle to make ends meet, why on earth would they want to lend you money!

Hope the above is helpful.

CLAPTON

if you are a self employed window cleaner then you need urgently to learn to save money in the good times so you have money for the bad times

relying on an overdraft or other credit is simply madness.

so having no credit cards has been a blessing for you

the harse winter has long since gone, why are you still into your overdraft?

forget about credit application for a while and

1. concentrate on clearing the overdraft as a matter of urgency; partly becasue it costing you interest/fees, partly because it's your only emergency source of money and also because it's damaging your credit record (living in OD = bad financial risk)

2. once the OD has gone then start saving : target 20% of income at least

I assume you are also making provision for tax and NI on your earnings

Saints2011

I suggest you click this link and have a good read, your on the 'rejection spiral'..

Tremour-88

Your best bet would be to apply for a Capital One classic (they'll most likely reject you) and you may get offered there Secure Card with a £29 - £200 deposit

Maestro.

Unfortunately applying for credit is a bit like getting a job - everyone wants you to have a history but you obviously need credit to build a history... and so forth. I am currently in this situation where I have reasonable finances but no credit history at all, so am currently awaiting an approval from Vanquis, a "starter" or "bad credit" card. You also need to make sure you are on the electoral register, as I have learned not being on it is an instant failure for a lot of credit.

chanz4

The companys mentioned also are very funny about who they accept, as others have said though try vanquis

robyn1991_2

Hmm perhaps I haven't been clear enough to some of you.

I have already stated that I do not want credit to build up debt, I do not need credit as I have a healthy steady income. However, I would like to be able to get basic things, like a phone or tv package without this hassle. My questions is not: 'Why did I get refused credit in the past'.

My question is, despite having a mobile contract since mid 2010, car insurance since 2009, BT since 2009 etc etc why am I still refused? I HAVE a credit history, I'm using my BT contract to get online right this minute. I just cannot understand why I am refused things now. I will not be able to get a car, buy a house etc in the future if this continues, I need to build up my score gradually as soon as possible. I must add that even becoming a TENANT requires a credit check, so if I ever need a new flat I'm screwed there too.

I shouldn't really feel the need to defend why I'm in my overdraft, but I will anyway because I'm stubborn and people who presume things annoy me. Who exactly predicted that winter 2010/11 would be one of the coldest ever recorded? I had money (And appropiate work) put aside for winter, but never did I expect temps up to -12 degrees for days on end.

I'm confused as to why simply being in my overdraft can make creditors wary....I have regular ingoings and outgoing, and I'm not often close to my limit so I'm obviously making ends meet. Why would USING credit given to me lower my rating? Using a credit card does not lower your score, surely? Only misuse of the credit?

Birdy12

robyn1991 wrote: »

As a result of the horrendous weather I ended up maxing out my overdraft to its full capacity, currently I am £1150 into a £1200 overdraft, as I have not been able to get myself out of it yet.

robyn1991 wrote: »

I do not need credit as I have a healthy steady income.

Am I missing something?

[Deleted User]

An overdraft is the 'wrong' type of credit to be using. Like Payday Loans - it sends out the wrong signals. Simple as that. ie you haven't got enough money for your lifestyle. Whereas using a credit card and paying it off in full shows good financial sense, as you hang onto your own money in the bank for longer.

izools

BT and Car Insurance won't appear on your credit file so won't make any difference to your creditworthiness.

Mobile phone contracts aren't credit agreements so whilst they appear on your credit files they make hardly any difference.

Overdrafts are to be had and not used. Maxing yours out will reflect on your credit file and cause you to be reflected as a bad risk - those that have a sufficient income and manage their accounts effectively don't use their overdrafts. Those that completely max out their overdrafts clearly have cashflow and / or money management problems.

You don't need to defend why you're in your overdraft, you're absolutely right. It's irrelevant why you're in your overdraft. Merely the fact alone that you are, and near enough at the limit, shows that there's something wrong, irrespective of the reason.

That's just the way it is. That's how risk analysis works. And it's accurate.

End of.

If you want a good credit score you need to fulfill some simple criteria:

Have a bank account with an overdraft that isn't used
Have a mobile phone contract
Have a credit card with a balance kept below 25% of the limit and cleared every month
Never have more than two credit searches in any six month period
Be registered to vote
Have a proveable income each and every month far outweighing your vital living expenses.

Then you will be a lower risk. As you fulfill very few of the above criteria you're a high risk. Now you know how to change things, it's your perogative as to whether or not you actually do.