turned down because of old CC defaults??

loulous

My current fixed rate with the Chelsea was up in August and my bank were offering a good rate to current account holders that was fixed for 3 years. So I applied and they turned me down. I have banked with them for 21 years!

They told me that the underwriters had said it was something to do with an old credit card that I had defaulted on but was settled three years ago. The debt was around £500 and I missed 5 payments before paying in full. My credit rating was fairly poor, but I never missed a mortgate payment or utility bill payment and once I got everything else on DD then I was fine and have been for 3 years.

So - is it usual to be turned down just because of an old defaulted credit card and if not should I be talking to the financial ombudsman about it?

many thanks for taking the time to reply!

Dave_Ham

Unfortunately, this is the norm as you have failed the automated credit score.

This is not necessarily the end of the road of you achieving a new mortgage, but it is harder.

You need to get your Experian, Equifax and Call Credit reports and then let us know what is on there and importantly the date defaulted and amount.

Good luck

loulous

Thanks Dave, good to know I guess that they are like this with everyone.

It's blooming frustrating though when they don't take in to account the fact you've never defaulted on the mortgage! As I say the amount was £500 and I cleared it in June 2009 and I had missed 5 payments by then.

Dave_Ham

Get your credit files, you will then be able to assess your options..

Thrugelmir

loulous wrote: »

It's blooming frustrating though when they don't take in to account the fact you've never defaulted on the mortgage!

What's required is the whole picture.

People are far less lightly to default on their mortgage for good reason.

maninthestreet

how did you manage to miss FIVE payments?