Just a few questions.

OneLife_OneShot

Hello there, I am 23 and unemployed since December 2011.

I only ever had one bank account which was for when I was a student it had a £300 Student Credit Card which I pay the minimum fee each month around £10-13 or more if I have the funds available.

The student account also had an interest free overdraft which I had to start paying interest on when I finished university its about £12 a month.

I have a Capital One Classic Card with £350 limit and I pay it on time each month as well.

The thing I don't understand is every time I have applied for even a short term loan or a low-limit credit card I have been rejected and this was even before I lost my job.

The only thing I ever defaulted on a was an o2 mobile contract in early 2010 and I paid the full amount of about £300 in 5 weeks after it.

I looked at my Equifax report and it has settled beside it and the bank account I closed and every other thing seems to be fine including my current bank account with Halifax. The defaulted thing isn't even on the report, my current contract is and its all up to date as well.

Is it because I am unemployed that I am being turned down or is my credit rating that bad because I still have an overdraft and am paying 2 credit cards?

Tixy

Even a satisfied default is a big negative on your ability to get credit.

Being in an overdraft every month is considered a negative by most potential lenders.

If you are currently unemployed then you are very unlikely to be able to get any new credit for that very reason - unemployment benefits are only considered to be enough to live on, potential new lenders would think you would be unable to meet repayments.

If you were being declined prior to being unemployed then it must have been for other reasons - likely the default for 1, but possibly other things as well.

Have you only checked your equifax report? maybe your experian and/or callcredit/noddle report are showing the default? or showing missed payment markers on things?

Are you on the electoral roll? were you when you were employed and being turned down for credit?

OneLife_OneShot

I will have to try a few other credit agencies, I wasn't actually declined credit before being unemployed as I got my Capital One card then.

I don't think the old o2 thing is a default as I have seen an Experian report and I think it said settled. I will have to hoke out my log-in info for it. I paid it before a debt collection letter even appeared.

I have a repayment plan with Wonga so I guess that might be doing damage but there is no mention of it on the file and the plan was set up the day my loan was due so it wouldn't accrue fees or interest and I have stuck to it so far.

I have never voted but have been told going on the electoral roll does help with stuff like this so I will be joining it.

I am not majorly in debt or anything I am just looking at ways to keep my credit rating better and not go over board, obviously when I get a new job it will be a lot easier to get by.

Thanks for your help.

Tixy

conisme wrote: »

I will have to try a few other credit agencies,

There are only 3 credit reference agencies - equifax, experian (also branded as credit expert) and callcredit (now branded as noddle).
You can get your statutory credit file from each for £2. Or you can register will noddle online and get a free report from them. For experian & equifax there are free trials you can use once (only free if you cancel in time).

conisme wrote: »

I have a repayment plan with Wonga so I guess that might be doing damage but there is no mention of it on the file and the plan was set up the day my loan was due so it wouldn't accrue fees or interest and I have stuck to it so far.

I think Wonga only report to experian - being in a repayment plan is quite likely to be shown on your credit file.

conisme wrote: »

I have never voted but have been told going on the electoral roll does help with stuff like this so I will be joining it.

Major impact not being on the electoral roll. From when you register with the council it can easily take 3months before thats updated on your credit file so I would register as soon as you can.

Experian_company_representative

If you only repay your credit card debt each month when you have sufficient funds available then you're likely to find missed payments on your credit report too, which won't be helping.

James Jones