No debts, good credit rating, but refused everywhere! Why?

flogo18

I am not sure if anyone can help. Over the last 20 years, I have had loans (between 1500 and 25000), store cards, phone accounts, etc... which have all been paid up and on time. Last year, I applied for a small loan with Sainsbury's bank (I have had 2 previous loans with them before) but I was turned down. At the time I put it down to having recently moved and my name not yet showing on the electoral roll. A few months back, I tried to buy a phone on contract (T.Mobile) and got turned down again! Finally, a few months later, I tried to apply for a Debenhams store card and it failed. I asked Experian and Equifax if there was anything untowards with my credit rating, but they said no. I wrote to Santander (Debenhams) to query and review their decision and they said that I was not meeting their criterias but wouldn't say what they were (for "security reasons"). So, although I am debt free and have more disposable income now than I ever had in the last 20 years, I can't apply for any credit!? and I can't find out what is causing this!? If anyone can help me work this one out, that would be really helpful: I may need to move soon (for work) and the last time I did (before my credit pbs started) the letting agency did a credit search. What if I get turned down in future? this is really worrying me

RichL74

When you say you 'asked' Experian and Equifax, what did you do, just ring them? I'm surprised they would just tell you everything was fine off the bat.

CLAPTON

what do your three credit reports actually say?

RichL74

That was the point I was trying to make, did he / she even get copies of the reports or just ring them, the way the text is written it's the latter.

SeanG79

Apply for all 3 credit reports and see what they say, they cannot provide you with information over the phone.

butterfinger

sorry but everyone above is wrong, you can get information from calling experian as i did it yesterday afternoon, as with equifax again you can bcause i called them at the start of this month.


It sounds maybe as though your credit balances havent been too active of recent or they have been too much of late...

for example....even though in the last 20 years you have had all these successful accounts remember its only a 6 year period on your report, so if you have been quiet on the credit front for six years it will be hard to obtain credit regardless of personal circumstances, reason being is creditors wont know your behavior is like with credit if you have had nothing really in the past 6 years.


if in the last 6 years you have had alot of credit successful or not successfully paid it will look to creditors as though you are money hungry and may be too desperate.

If you ask me the credit rating system is MAJORLY flawed, in fact i did a massive paper at University on it and got some remarkable reviews

flogo18

Actually, I am a member of both Equifax and Experian. I called them and we went through all my details - checking address was correct, electoral register was showing, history, etc... and they said that everything was in order. My scores are good, but both advisers did tell me over the phone that a good credit score doesn't mean you will be succesful in your applications as lenders'criterias vary a lot.
Based on Butterfinger's feedback, it is true that I have only made one credit application in the last 6 years - a large loan which I have just finished repaying - Aug 12. But the reason I have not applied for any credit accounts during that period was simply because it would have been irresponsible and bad money management to overburden myself beyond my means.
However, if I am now being turned down because there is not enough outstanding credit or activity against my profile, how on earth can I correct the situation if I get turned down all the time????
I feel like I am being penalised for managing my cashflow sensibly over the years?
Am I caught in a catch 22 situation now or will I ever be able to, say, apply for a phone account, a store card, etc...in future???

Tixy

When a lettings agency does a credit search - all they can see is the public data - that is whether you CCJs or have entered into an insolvency agreement (bankruptcy/IVA/DRO) and whether you are on the electoral roll. They do not see your credit account history or credit searches.

Being turned down for credit agreements doesn't mean you will fail a lettings agency credit check.

As an aside - do you have any financial associates showing on any of your agency reports (joint bank accounts / loans / mortgages now or in the past?).

butterfinger

flogo18 wrote: »

Actually, I am a member of both Equifax and Experian. I called them and we went through all my details - checking address was correct, electoral register was showing, history, etc... and they said that everything was in order. My scores are good, but both advisers did tell me over the phone that a good credit score doesn't mean you will be succesful in your applications as lenders'criterias vary a lot.
Based on Butterfinger's feedback, it is true that I have only made one credit application in the last 6 years - a large loan which I have just finished repaying - Aug 12. But the reason I have not applied for any credit accounts during that period was simply because it would have been irresponsible and bad money management to overburden myself beyond my means.
However, if I am now being turned down because there is not enough outstanding credit or activity against my profile, how on earth can I correct the situation if I get turned down all the time????
I feel like I am being penalised for managing my cashflow sensibly over the years?
Am I caught in a catch 22 situation now or will I ever be able to, say, apply for a phone account, a store card, etc...in future???

As mentioned before the credit scoring system is so badly flawed, basically these days we have a machine telling us if we can mange our money or not and if we are responsible or not, it would be much better to have your bank manager sit down and make a personal decision on whether or not you are viable for a loan rather than a machine make a decision!!


Anyway, with regards to getting your 6 year history attractive without being irresponsible i would suggest getting a credit card with say £500 limit if you havent already got one, just use it for your everyday purchases and repay it in full every month, after about 6 months you should start to see the attractiveness of your report start to increase.

you can visit https://www.applywithconfidence.com which will give you a choice of credit cards that you have a good chance of getting. P.N all though it searches your credit file it does NOT leave a search footprint on your file what so ever.

flogo18

Hi Tixy,
Thanks for the reassurance re.Letting Agency. to answer your question, I don't have any financial associates. I have just checked my credit reports again and there is nothing (ccj/previous addresses/financial associates/etc...)... I have a clean sheet, as the advisors confirmed when I spoke to them. When i wrote to Santander, they replied I was probably a good payer but I didn't meet their criteria...but woldn't say what the criterias were (for security reasons), so it looks like i will never know where the block comes from :-(

Tixy

DCFC79 isn't laughing at you or your situation flogo.

Do you have any active credit agreements? I know you mentioned having store cards, phones etc in the past but are any still open?

Do you have an overdraft with your bank? If you don't have any credit cards have you tried applying for one with your own bank?