Why am I still sub-prime?!

FrustratedMoneySaver

Hello wonderful world of MSE, I've been a lurker for some time, trying hard to use the forum to improve my credit history.

I was terrible, truly terrible in my youth (all before I turned 19) and had 2 defaults and 2 CCJs against my name. These have since dropped off my report, and it now shows nothing but beautiful green ticks

Experian apparently thinks my credit "score" (I realise how subjective and useless these are in applications, but just for reference here) is 942. Equifax have it at 529. Both of these are Green for "good" but not quite excellent. I'm currently using 60% of my available credit (but this should go down a bit next month as my Next limit was raised, and the remaining CC balance paid).

I currently have a credit card with Vanquis (yes they were the only ones who would accept me, but I've actually found them very good, bar the interest rate). I have mainly paid it off in full each month, I have sometimes held a relatively small balance over to the next month (we're talking £200). I've never missed a payment, never gone over my limit, and I've had it over 2 years. My limit is £3000.

I have 2 bank accounts - one with Barclays held for 6 years and a £300 overdraft on it - interest free. I never actually use this facility. The other is a Santander 123 account that has no credit facility, but is run as a "bill" account so all the money goes in and out and we get the cashback

I also have catalogues with Next and JD Williams - both have about £100 on, just to keep the 'ticks.' Credit limits are £600 and £1400 :eek: respectively.

I recently got my car on finance no problem (God only knows how) this has been since September and of course, no missed payments.

The only other things on any credit reports are an old settled account with RBS, and old settled Next account, and old OU account (settled), BT and my T-mobile contract, which is over 2 years old, all green ticks.

This all sounds good, but I'm desperate to rid myself of the vanquis! There's nothing wrong with it as such, but I'd quite like a nice, normal, credit card. One that rewards me would be a bonus (like tesco or something, as I always shop there already) but nobody will touch me for them!

Is this because I'm not employed? I'm a full time carer for my disabled son, my fiance works full time and we have a relatively healthy income. His "score" on experian is 600, yet he recently got offered a Nationwide CC at 9.9% with £3.5k limit!

Am I ever going to have a nice credit card? The only searches still showing on my account are the car finance from Sept, and a nationwide myself (after he was offered) in January. It's driving me mad!

ElkyElky

What do you select as your employment status on applications? Selecting unemployed would usually lead to a decline. At least if you select something like housewife/homemaker then that helps somewhat.

FrustratedMoneySaver

I always select homemaker if possible, if not then "other."

Thank you

Hunterz1_2

FrustratedMoneySaver wrote: »

Hello wonderful world of MSE, I've been a lurker for some time, trying hard to use the forum to improve my credit history.

I was terrible, truly terrible in my youth (all before I turned 19) and had 2 defaults and 2 CCJs against my name. These have since dropped off my report, and it now shows nothing but beautiful green ticks

Experian apparently thinks my credit "score" (I realise how subjective and useless these are in applications, but just for reference here) is 942. Equifax have it at 529. Both of these are Green for "good" but not quite excellent. I'm currently using 60% of my available credit (but this should go down a bit next month as my Next limit was raised, and the remaining CC balance paid).

I currently have a credit card with Vanquis (yes they were the only ones who would accept me, but I've actually found them very good, bar the interest rate). I have mainly paid it off in full each month, I have sometimes held a relatively small balance over to the next month (we're talking £200). I've never missed a payment, never gone over my limit, and I've had it over 2 years. My limit is £3000.

I have 2 bank accounts - one with Barclays held for 6 years and a £300 overdraft on it - interest free. I never actually use this facility. The other is a Santander 123 account that has no credit facility, but is run as a "bill" account so all the money goes in and out and we get the cashback

I also have catalogues with Next and JD Williams - both have about £100 on, just to keep the 'ticks.' Credit limits are £600 and £1400 :eek: respectively.

I recently got my car on finance no problem (God only knows how) this has been since September and of course, no missed payments.

The only other things on any credit reports are an old settled account with RBS, and old settled Next account, and old OU account (settled), BT and my T-mobile contract, which is over 2 years old, all green ticks.

This all sounds good, but I'm desperate to rid myself of the vanquis! There's nothing wrong with it as such, but I'd quite like a nice, normal, credit card. One that rewards me would be a bonus (like tesco or something, as I always shop there already) but nobody will touch me for them!

Is this because I'm not employed? I'm a full time carer for my disabled son, my fiance works full time and we have a relatively healthy income. His "score" on experian is 600, yet he recently got offered a Nationwide CC at 9.9% with £3.5k limit!

Am I ever going to have a nice credit card? The only searches still showing on my account are the car finance from Sept, and a nationwide myself (after he was offered) in January. It's driving me mad!

First of all. You using 60% of your credit which means creditors will see u as someone who is credit hungry, and constantly using credit. Try bring down your used credit to around 30%.

Secondly of all, your not employed. If you put down you are not employed when your applying for credit this will be an INSTANT decline. Unless your old, have a fantastic credit history and own a house outright then getting credit these days being unemployed is very hard. Years ago you could, not anymore.

With the CCJ's and defaults off, that is good, but I am afraid being unemployed and applying for credit is mainly your stumbling block.

How did you manage to get a car on finance btw being unemployed?

FrustratedMoneySaver

Hunterz1 wrote: »

How did you manage to get a car on finance btw being unemployed?

I presume because they somehow managed to put "carer" as the employment details. It's not on HP, it was a loan through Clydesdale/Barclays. The interest rate isn't very nice either!

izools

Hunterz1 wrote: »

If you put down you are not employed when your applying for credit this will be an INSTANT decline

My mother has never had difficulty getting credit declaring herself as Homemaker or Retired.

Just recently she was approved for a Barclaycard Simplicity at 7.9% APR with a £3,000 limit and an Ikea 0% for two years agreement, despite being "Unemployed".

Thinking about it, she's not been declined for anything for years... MBNA Platinum, Capital One 9.9% Card, Barclaycard Platinum Simplicity, Nationwide Loan, Ikea Loan, Saga Platinum, First Direct Bank Account and Credit card, etc etc etc. All fine.

shortcrust

izools wrote: »

My mother has never had difficulty getting credit declaring herself as Homemaker or Retired.

Just recently she was approved for a Barclaycard Simplicity at 7.9% APR with a £3,000 limit and an Ikea 0% for two years agreement, despite being "Unemployed".

Thinking about it, she's not been declined for anything for years... MBNA Platinum, Capital One 9.9% Card, Barclaycard Platinum Simplicity, Nationwide Loan, Ikea Loan, Saga Platinum, First Direct Bank Account and Credit card, etc etc etc. All fine.

As the poster you quoted went on to say, the picture is very different for older people with excellent credit histories. That description seems perfect for your mother!

BugsyBrowne

izools wrote: »

My mother has never had difficulty getting credit declaring herself as Homemaker or Retired.

Just recently she was approved for a Barclaycard Simplicity at 7.9% APR with a £3,000 limit and an Ikea 0% for two years agreement, despite being "Unemployed".

Thinking about it, she's not been declined for anything for years... MBNA Platinum, Capital One 9.9% Card, Barclaycard Platinum Simplicity, Nationwide Loan, Ikea Loan, Saga Platinum, First Direct Bank Account and Credit card, etc etc etc. All fine.

Agree as I've said before a few of mates birds are homemakers and never struggle with getting credit with high limits.

Like the saying goes its all about whats on the credit files that counts.

izools

shortcrust wrote: »

As the poster you quoted went on to say, the picture is very different for older people with excellent credit histories. That description seems perfect for your mother!

Point taken.

OP - other than Experian not putting you in "Excellent" - which as you've seen with your mate getting a 9.9% card from Nationwide, means nothing - what makes you think you are sub prime?

You probably have difficulty because of a) your debt to limit ratio and b) your debt to income ratio, rather than your credit history.

Would it be cheeky to ask how much you owe as a percentage of your annual income?

FrustratedMoneySaver

izools wrote: »

Point taken.

OP - other than Experian not putting you in "Excellent" - which as you've seen with your mate getting a 9.9% card from Nationwide, means nothing - what makes you think you are sub prime?

You probably have difficulty because of a) your debt to limit ratio and b) your debt to income ratio, rather than your credit history.

Would it be cheeky to ask how much you owe as a percentage of your annual income?

Hi, thanks very much for your reply. Not cheeky at all, I'm keen to understand this more - I went into the world of credit at 18 very naive and foolish and I'm still learning!

As it stands, right now, I have (according to experian) £9555 outstanding debt (just under £7000 of which is my remaining car loan). Our joint income is roughly £40,000 after tax, of which £25,000 is my own.
Apparently, since I last checked my report, the day I posted this thread, I'm using 2% less of my available credit - so now at 58%.

I thought I was/am sub prime because I can't get a nice shiny "not embarrassed to take this card out of the purse" credit card. Well, it's mainly frustration at not being able to avail of the potential cashback/rewards that come from prime credit cards. I'm spending the money on food, petrol etc anyway and I'd prefer to get a tiny something back from it. Would you say possibly not actually sub prime then?

older_wiser

I wouldn't worry about having a less than desirable credit card most people don't notice what your using. at the moment i'm using an aqua reward credit card just to get the 100 cashback i used to think the same as you but i don't bother now i use it in restaurants supermarkets why worry about insignificant things such as the brand of your credit card.