Credit Rating: Very Poor.

jonesMUFCforever

In a word yes.

matttye

jonesMUFCforever wrote: »

In a word yes.

Seems like a very archaic way of judging someone's creditworthiness, especially a young person, but I guess that's just the way it is.

Cheers!

sharpy2010

Why should they judge someones credit worthiness based on their age?

matttye

sharpy2010 wrote: »

Why should they judge someones credit worthiness based on their age?

I said age but that was the wrong way of explaining what I'm talking about. I was tying age in with experience/knowing how to deal with debt/credit.

What I really mean is that you should be able to demonstrate a lesson learnt. Defaults are prejudicial if you've managed your finances well ever since. Six years is a really long time for them to be on your credit report.

What if they came off after four/five years if you have no further late payments/defaults with any other lender?

Seems very unfair that someone can be judged for something that happened up to six years ago if they've had a lot of non-problematic more recent agreements, as this demonstrates an ability to handle credit well. I think computers just say no when they see defaults.

sharpy2010

I couldn't agree more with your post. Six years is too long for bad credit to stay on your file, and personally I believe three years at most would be fine.

Six years is long enough for someone to think "oh sod it, it'll take forever to get my credit back on track, I just won't bother".

jonesMUFCforever

sharpy2010 wrote: »

Why should they judge someones credit worthiness based on their age?

Someone aged say 20 with little history of borrowing and repayment how much would you lend him/her?
Someone aged say 40 with a history of repaying back what they borrow - would you consider this to a good bet?
Someone aged 40 say with a list of late payments/defaults etc would you lend more to them?

Just 3 scenarios the lenders would consider - obviously the computer generated matrix affecting everyone is much more sophisticated than that but the main problem we have with credit today is that it is too easily available even today with banks supposedly not lending.
People who are turned down are turned down for a reason - in most cases they cannot afford it.