Can't get credit - help needed please!

jovichick123

Hi all,

Not sure if I am posting in the right place so apologies if not! I also apologise if the following post doesn't make much sense... despite being an English student, I am not very literate when it comes to talking about money!!

Here goes. My situation is that I am an English degree student. My only incoming income is from my student loan, child tax credit and child benefit. I recently applied for a student bank account with the Natwest (who I already have a step account with) and have been turned down on the basis that I failed their credit check. Alarm bells ringing, I applied for my credit report (the £2 one) and was suprised when I received it only to find that as well as a number of searches, the only adverse information was a CCJ from 2002 for £481. I have never had a credit card, loan agreement or overdraft and the only monthly payment plan listed on my credit report shows that I have made payments for all but one month (which only went one month into arrears).

I was looking for credit to help tide me over until my loan comes through in April as I only have £800 to last until then and having a 2 year old, know this won't go far! I have applied to and been turned down by Capital One, Vanquis and Barclaycard despite them offering cards to rebuild/establish credit ratings. Does anyone have any advice? I have never had to apply for credit before so it has come as somewhat of a shock to find that I can't get any. Can anyone give me some advice as to how to repair a non existant rating when no one will give me a card to be able to do so? I am on the electoral roll and also have a home phone no as I believe this helps (from reading on here!). I did move home in June of 2006 tho so I realise this is probably working against me.

I just feel a bit down about the fact that I have managed so long without credit cards etc and now I feel like I am being penalised for that. If anyone can offer any advice I would be very grateful!

Thanks,

Sarah x

inmypocketnottheirs

A CCJ from 2002 will be causing a large part of your problem. When a lender checks your file and sees an outstanding debt, it is unlikely to lend you any more money. If Vanquis, Capital One and Barclaycard Initial have turned you down, three credit searches on your file are not going to help either.

jovichick123

Thanks for the response, how long do the traces of searches stay on file? I am a total muppet with all things credit related as I have never tried to get any before (given that I am 25 now, you would think I would have accrued some knowledge of stuff like this, huh?)

CLAPTON

i'm curious, if you have never had any credit how do you have a CCJ on your credit record?

also if you did succeed in getting credit, how would you pay it back as you're obviously already struggling ... once you are making CC repayments and interest you will have even less money to live on ..so the danger is you will increase you credit card spending to tide you over ....

danjberry

The searches stay on your credit record for a year i believe, so for a year other comapnies will be able to see you have applied elsewhere for credit. what was the CCJ for, you are not being penalised for not having previous credit, you are being penalised for having adverse credit. has this been settled? or is it still outstanding? when you say it is the ONLY adverse credit i was a bit alarmed a CCJ is quite a big deal, If it is outstanding it will be most beneficial for your credit rateing to have this cleared.

jovichick123

I got married when I was 19. My ex husband was a bit of a control freak when it came to money so despite earning more than he did, he controlled the bills (and supposedly their payments) etc. The CCJ was for the Open University, a course I started back in 2001 and then had to stop as it was interferring with work and I was told that (by my then husband) as a couple we were unable to afford it. I knew about the CCJ at the time but I made arrangements to pay it (with the court) and as far as I was aware, these had been made by DD. I have since found out by ringing the court that they were never paid and that the balance is still outstanding. I do intend to pay the balance of this in April when my loan comes through (as it is a lump sum and I am looking to work over the summer, this should not be a problem). I know that a CCJ is a big deal but I honestly thought it had been dealt with until a few weeks ago. I guess being stupid when you're younger really doesn't pay off in later life huh?

Thanks for all the advice. It is much appreciated!

Sarah x

CLAPTON

all is clear now:
i think you have been very unlucky there.

Unfortunately an unsatisfied CCJ is pretty much a no-no for most types of credit.

although no immediate use to you, the CCJ will drop off after 6 years so by 2008 you record should look ak again

the only thing i can think of in your situation is to actually go into your bank and have a face to face meeting and explain about the CCJ and how your OH was meant to pay it off etc. however, i'm not sure if it will work

also
all Uni's have hardship funds... its likely that they will be able to help you.

jovichick123

Thanks Clapton, I have actually just finished filling out all the forms for the hardship loan so fingers crossed eh? Will be handing them in tomorrow as have no lectures today!

Sarah x