Credit Check Nightmare

rayjay01

I appreciate credit checks are there to protect businesses from losing money. However in my opinion they're completely inaccurate and unworkable.

I tried to apply for credit yesterday to buy a new washing machine, which was later rejected. I was given a letter with multiple reasons why this may of been and told to contact the credit agency to find out the exact reason why.

I know my credit rating is quite poor at the moment, due to 3 missed payments to NEXT in December last year. This payment was for a value of less than £20... and was resolved as soon as I heard about it. Yet i'm being treated the same as someone missing a repayment value of £1000's. I know it can't be that bad though, as I was successfully granted credit earlier this year for a value of £800.

I called them this morning and was told they cannot give me an exact reason as the people who decide can't be contacted. He said it could be due to missed information in the application process or what really annoyed me, it could even of been a typing error with the person filling out my application (spelling an address wrong etc).

So how on earth am I supposed to resolve something if I don't know what it is i'm meant to be resolving?

Surely it would make far more sense if these companies told us the reason why we were declined, so we can then go off and sort it out, especially if it was something as silly as a typing error.

[Deleted User]

Not really, as it would then tell people how to make successful fraudulent applications.

Check your reports carefully and see that you agree with everything there. Then consider whether a lender may consider you to have too much debt, be too high a risk etc to lend to.

rayjay01

Deleted_User wrote: »

Not really, as it would then tell people how to make successful fraudulent applications.

Check your reports carefully and see that you agree with everything there. Then consider whether a lender may consider you to have too much debt, be too high a risk etc to lend to.

I can't see how I can make a fraudulent application, when I can't change any aspect of my credit report as it is. Knowing that I've been declined due to poor credit will not allow me to go off and create a whole new credit report...

I've checked over my report, and I'm portrayed as someone who cannot keep up with payments and very bad risk. When in reality it was a complete accident as I wasn't aware a direct-debit could be set up with the company and it completely slipped my mind. And the value of the payment I missed was for as little as £20. Yet I'm being treated the same as someone who may of missed a payment for £2000.

Curr946

only those with brill credit are getting finance these days... just too risky for the likes of comet etc who are already loosing money.

Maybe going forward you should check your statements and make payments on time. Once a year or so has past these late payments wont be such an issue.

BugsyBrowne

rayjay01 wrote: »

I can't see how I can make a fraudulent application, when I can't change any aspect of my credit report as it is. Knowing that I've been declined due to poor credit will not allow me to go off and create a whole new credit report...

I've checked over my report, and I'm portrayed as someone who cannot keep up with payments and very bad risk. When in reality it was a complete accident as I wasn't aware a direct-debit could be set up with the company and it completely slipped my mind. And the value of the payment I missed was for as little as £20. Yet I'm being treated the same as someone who may of missed a payment for £2000.

But you are a high risk to a lender take it how you want but your not the customer they will to take a risk on.

[Deleted User]

rayjay01 wrote: »

I can't see how I can make a fraudulent application, when I can't change any aspect of my credit report as it is.

The 'check your credit file' reply is a one size fits all answer from lenders. It may also include that you don't earn enough, have too many dependents, etc. A lot of these things are input at your discretion and aren't checked.

Their reply basically says you don't meet their criteria, and they're not going to tell you exactly what that criteria is.

YorkshireBoy

rayjay01 wrote: »

I've checked over my report, and I'm portrayed as someone who cannot keep up with payments and very bad risk. When in reality it was a complete accident as I wasn't aware a direct-debit could be set up with the company and it completely slipped my mind. And the value of the payment I missed was for as little as £20. Yet I'm being treated the same as someone who may of missed a payment for £2000.

They may take the view that someone who pays scant regard to £20 payments being made on time wouldn't give a monkeys about a £2K debt.

rayjay01

YorkshireBoy wrote: »

They may take the view that someone who pays scant regard to £20 payments being made on time wouldn't give a monkeys about a £2K debt.

I just think it's disgusting that companies can record information in such an unfair way and leave you unable to put forward your reasons why.

I'm 21 years of age, and this has possibly ruined my future (well for the next 6 years) all because of 3 silly missed payments of £20. How is this a true reflection of my financial situation when I know I can keep up payments.

What you said is very true, and just proves my point that your credit report can be interpreted any which way the person wants. It's not an accurate piece of information at all.

YorkshireBoy

rayjay01 wrote: »

I just think it's disgusting that companies can record information in such an unfair way and leave you unable to put forward your reasons why.

You can add a 'notice of correction' (see the help files on a CRA website) to your credit report explaining the reasons why. This will mean any application you make will have to be assessed manually, not by computer.

However, I'm not sure how you can explain away missing 3 (consecutive?) payments without admitting you paid scant regard to them?

How would you word it?

I'm 21 years of age, and this has possibly ruined my future (well for the next 6 years) all because of 3 silly missed payments of £20. How is this a true reflection of my financial situation when I know I can keep up payments.

But you didn't keep up repayments...that's the whole point. And you'll be OK long before 6 years is up.

What you said is very true, and just proves my point that your credit report can be interpreted any which way the person wants. It's not an accurate piece of information at all.

Au contraire...the information, or more specifically the data, contained within it is very accurate.

Lenders are free to interpret it anyway they want...and your only chance of explaining 'glitches' is the aforementioned NOC, or appeal letter.

[Deleted User]

rashelbrian wrote: »

[FONT=&quot]no credit check is that the bad monetary behavior of the past will not go back to haunt the applicant. This is in sharp difference to typical money.[/FONT]

Well said. I couldn't have put it more incoherently myself.

Spam reported.

meer53

rayjay01 wrote: »

I just think it's disgusting that companies can record information in such an unfair way and leave you unable to put forward your reasons why.

I'm 21 years of age, and this has possibly ruined my future (well for the next 6 years) all because of 3 silly missed payments of £20. How is this a true reflection of my financial situation when I know I can keep up payments.

What you said is very true, and just proves my point that your credit report can be interpreted any which way the person wants. It's not an accurate piece of information at all.

Why is it unfair ? You missed 3 payments, thats what has been recorded. We could all miss 3 payments then say "it slipped my mind" It's a true reflection of how you managed your account at that time. If you know you can keep up with the payments, why didn't you ?