FTB - Why were we refused credit?

Bleeders

Hey all,

Long time lurker, first time poster here.

I'm looking for some advice really. My partner and I have recently completed on our first property (last Wednesday) and both of us have recently cleared a lot of credit card debt, leaving us only with an Egg Loan that I have myself, which we're also in the process of clearing. So aside from that and the mortgage, we have no other "financial ties" so to speak.

However, when we collected our keys last week, we found a number of correspondance addressed to the previous owner regarding baliffs being brought in on an outstanding bill. We contacted the company and notified them of the situation that we are the new owners and what should we do, which we were advised to otherwise destroy the correspondance or send it back, so we chose to send it back.

Now, yesterday we applied for a loan with Sainsbury's Bank, since my partner works for the company and because of which, she would've got a fixed APR of about 6.1% I believe it was. In anycase, we were declined for the loan and quite puzzled by this, we asked why which they weren't able to tell us. However, they assured us one of their partner sites, Freedom Finance would be able to tell us why were refused credit. We were passed over to them and of course, they were unable to tell us either citing that nothing has come up as to why we've been refused.

This has put a bit of a spanner in the works for us, but speaking to family, I've been advised first and foremost to find out why we were refused credit - is there anywhere that could possibly provide a reason as to why we were refused?

Would the threatening action of the baliffs being brought into the property due to the previous owner have some bearing on us being refused or even that we've only recently moved in?

Thank you for your time,


Steve

rsykes2000

The previous owners financial problems aren't related to you - credit history is with a person and not a property. What could possibly be an issue is that you aren't on the electoral roll at the new place - yes I know it's only been a short while since you moved in. If you cancelled the credit cards after clearing them, it might look like you have no credit available to you - some lenders like to see you coping with credit available (while not overstretching) and therefore keeping a credit card open with a nil balance or one cleared monthly is a good thing.
As for finding out, go to https://www.experian.co.uk and https://www.equifax.co.uk and pay the 2 pound charge - they will then send you a copy of any credit history they keep about you. Alternatively, if you're disciplined enough to cancel, go to https://www.creditexpert.co.uk (experian credit history check) and sign up for their online 30 day free trial, remembering to cancel before the end of the 30 days.

Bleeders

Thanks for the advice.

My partner has cleared both her cards, but they remain open at present, so it might not be that.

Sorry about this, but we're quite green to this, but what do I need to do about getting on the electoral register?

rsykes2000

Unfortunately it's not automatic - even though you sign up for Council Tax, you don't get included in the ER. Call your local council - their number will be on the website. No idea which district Aveley is in but as an example, my local council - Leeds has a webpage with a downloadble form - http://www.leeds.gov.uk/page.aspx?pageID=1609fa33-0e2b-47cb-968e-1e5bddd897d9 - there will be opne on your local council's website I would expect.

Bleeders

Thank you very much, shall do that now.

miha_2

sorry

but i need to argue a little bit on some of the assumptions made above

I moved into a new proprety and exactly the same loots of letters, dept departments etc, send them back, destroied some of them

After about 6 months we have received a letter addressed to us (new tenents in our case) that a note (black note) has been put up on our address and gues what:
I went to get myself a telephone contract, i've been denied:mad: plus check on my credit file

It took us three months, phone calls, hundreds of letters to clear the address

Make sure you speak with the companies and they don't stick a note on the address

Bleeders

Thanks Miha, will get onto the company and make doubley sure there isn't anything against our address.

rsykes2000

Addresses *can not* be blacklisted, there is absolutely no mechanism to do this, credit files are per person. Anyone who told you this is lying. I can't comment on your circumstances miha and it could be one of a few reasons you were refused, but see the following articles (particularly the top one) :

http://www.easier.com/view/Finance/Loans/News/article-92525.html

http://www.joincreditexpert.com/information/AreYouOnACreditBlacklist/default.asp?sc=410014&bcd=guardcredccredbasic3

http://www.easymoneylender.co.uk/myth.aspx

http://www.themoneypages.com/ccstory/9759/94/Have_you_been_refused_credit?.htm

All of these state again that there is no such thing as a blacklist, it is simply down to your personal circumstances (eg, not on Electoral Roll, address is incorrect, you have CCJ/defaults, you've missed or were late with x payments over the last year, you've applied for too much other credit recently etc) for refusal of credit.

miha_2

then way the company sent us a letter demanding address and details of the person who used to live there and way have they asked a declaration of us when chased up??

how come my fiance has a note on his credit file about his old address as been blacklisted bacause there has been financial fraud done by someoane before he moved in

You might be wright but this is what happend?

so can you explain how is it possible to get a note on your credit file because you just live at that address

is not correct but is happening

rsykes2000

Which credit file does he have a note on ? If the fraud was nothing to do with thim, he should contact the company (experian, equifax or call credit are the main credit reference agencies) and start the procedure to get it removed. The fact that someone has been up to no good credit-wise before he moved in has absolutely no bearing on his credit file, as long as there's no financial association with the other person.
As for companies sending you letters asking for the address of previous tenants, this is an utter cheek on their behalf and you have absolutely no obligation to assist them - something which they know damn well but are happy to issue meaningless threats like blacklisting to get info from you (not all debt collection companies are like this, obviously). I would simply send them to either your landlord, housing association or letting agent. Let them deal with it, it's nothing to do with you.

miha_2

hi

have you had a look at annual credit report
there is a rubric for fraud notes (something like that) for the address.

trust me, your landlord, housing association or letting agent couldn't care less.

I just feel that you are just better off when you speak with them from the begining, clear the matter, than to try to clear the mess afterwods.

We have sorted everything but is so anoying to go through all this.

thanks