Credit Score Advice!

Brains64

CharlieH86 wrote: »

Hi All,

I applied for a loan online lats night and was very surprised when it was rejected. I checked my credit score and was ver surprised it was only fair - as my other half has much more debt than me....I now realise this isn't how credit scoring works...

I have 1 credit card which is only for £1,000 and whilst this is close to its limit - I never miss any payments. I am in rented accommodation and have never had a "big" loan before so my lack of "sizable" credit history appears to have worked against me. I was brought up to avoid debt and am generally very good with my money so am a bit unsure what I can do to improve my credit rating. Is it be best to:

- pay off as much of my existing credit card as possible?
- increase the limit on my credit card (even though I won't use this)

- consider other finance - the loan was for a car so could try going through the dealer?

Advice on this very much appreciated as I am at a bit of a loss what to do

Thanks,

Charlie

Is it just the one that you've applied to??, if so, try a few more, I know it's not advisable to make too many applications but it wouldn't hurt to try a couple more because I actually got rejected by a few too but I applied to others and they excepted it and I got a loan from them, not to mention my credit score is poor, worse than fair and my credit card is maxed out completely but I still got a loan, I do have some positives on it as well though, some are more fussy than others, they all see the same credit report but what they look for varies, you may have been just unlucky and got a fussy one, if they all reject you though, then you might have to reevaluate but I don't see why they all would from what you say I'm sure one will give you a loan.

SeanG79

appears moneysupermarket also do an Equifax soft search and then advise which lenders are most likely to accept you based on the information they see as well as the representative APR's. Obviously that search is only an indication but I would imagine that they will have been given a set of underwriting "rules" that they are using to establish which lenders you best match based on the Equifax report...

I haven't tried it but if its a soft search it cant do any harm...they also categorically state your credit profile will not be affected...