Idiot me - applied in a rush

matttye

I recently had some incorrect late payment markers removed from my credit reports and was eager to get a card to start repairing my credit history so I can get a mortgage.. I have defaults from four years ago but a spotless history since. Experian says my credit score is 'fair' but I take that with a pinch of salt as they're not a lender.

I got declined for two 'bad credit cards' and started to wonder if I'm in some kind of black hole where I'm too good for bad cards but too bad for good cards.

I then realised I rather stupidly forgot to check my Noddle report and only checked my Experian and Equifax ones. My Noddle report is still showing the missed payments that have been corrected in my other reports. I can't be certain but suspect this to be the reason why I was declined; I'll find out if the card companies searched my Noddle report in eight days when it updates.

My question is, how long should I wait before applying again? I know I probably shouldn't have applied for a second card without investigating and that may have already harmed my chances of being accepted. Is there a general rule of thumb for how long to wait?

I know previous searches drop off after a year, but I don't know if some lenders only consider previous searches in the last X months or if they consider all of them!

I understand there's probably no definitive answer to this, just after hearing about others' experiences.

Thanks in advance

Edit:

Also, how helpful are overdrafts in repairing a bad history? I currently have no overdraft but Lloyds has given me them every time I've applied in the past, so don't think I'd have an issue getting another.

Ta!

shortcrust

I'm not sure about the overdraft question or how long you should wait, but don't forget that the free Noodle report is only updated once a month whereas the data lenders see is updated daily.

matttye

shortcrust wrote: »

I'm not sure about the overdraft question or how long you should wait, but don't forget that the free Noodle report is only updated once a month whereas the data lenders see is updated daily.

Yeah thanks I got an alert saying mine will update in eight days, so hopefully they'll be gone by them.

You-kip wrote: »

I would say 99% its not nothing to do with The missed payments on Noddle unless the lenders you applied for searched call credit with which I doubt IMO.

I'm not sure what else it could be. Could too many credit agreements even when paid regularly be a problem? Over the last three years I've had three mobile phone contracts and also had a rolling iPad data contract with another company.

I have one default in Feb 2009, one in March 2009 and some arrangements to pay on another account between May and July 2009.

I haven't had anything negative in terms of late/missed payments or arrangement to pay markers since July 2009.

My Lloyds account has been up to date since January 2009. Throughout that time I've had overdrafts ranging from £0 - £1,500 but I've never regularly been in the red.

Gordon_Hose

You have defaults and have been rejected by two bad credit providers.

I'd say your chances of being accepted anywhere are extremely slim.

matttye

Gordon_Hose wrote: »

You have defaults and have been rejected by two bad credit providers.

I'd say your chances of being accepted anywhere are extremely slim.

I understand that. I have however identified a potential problem and am wondering how long to leave it now until I apply again.

IF the companies DID search my Noddle/Callcredit report, they would see missed payments from November 2011 - present. If they didn't, they would see no missed payments in the last four years.

Pretty significant difference. So I don't think it's completely out of the question to think the decision might be different when my Noddle report is updated.

JakeGreen

matttye wrote: »

I understand that. I have however identified a potential problem and am wondering how long to leave it now until I apply again.

From my own experience I've found that credit records can take up to 8 weeks to update. You'd really need to see your Experian and Equifax reports too.

To answer your other question. Conservative advice would say a clear six months before you should apply again. I'd say a clear 3 months from your last credit search to when you should apply again. Let's say 3 months and one week just to be sure.

Do one application for a 'bad credit' card and see what happens.

If you have ANY negative things on your credit file, even late payments it's best to not waste searches on your credit file trying to get credit from mainstream lenders.

My sister is very well off, has a mortgage, phone contract and CC. When she applied for the Santander 123 card recently she got one third of the credit limit I have. While there may be other reasons, she has two late payments from 2 years ago on her CC because she didn't pay by direct debit.

Good luck,

Gordon_Hose

matttye wrote: »

I understand that. I have however identified a potential problem and am wondering how long to leave it now until I apply again.

IF the companies DID search my Noddle/Callcredit report, they would see missed payments from November 2011 - present. If they didn't, they would see no missed payments in the last four years.

Pretty significant difference. So I don't think it's completely out of the question to think the decision might be different when my Noddle report is updated.

Sorry, but any default on your file is far worse than a missed payment.

212

Hardly anyone searches Noddle (Call Credit) for *actual* credit applications though. My report is full of pre-application searches (Barclaycard) plus identity verification from travel agents/money exchange places and then pages of car insurance quotes - not one credit application search.

So whatever your file says there, it's unlikely to have made a difference because the chances are the lenders wouldn't have searched it.

If you're concerned about what they hold, try running a Barclaycard pre-application check. Or a moneysupermarket check (https://www.moneysupermarket.com/credit-cards/search/?goal=CC_CREDITBUILDER) - both should scan call credit (Barclaycard certainly do). So see what results Barclaycard give you. They're often wrong, but if they're 'bad' then it's an indication Noddle probably isn't 100% correct.

As for your declines, it's not quite 4 years since your AP marker, possibly a little too soon to apply? Seems strange given how things have improved for you. Try your own bank, if they've given you a O/D before they may give you a credit card. Pop in/phone up with your existing details and ask.

As for searches, generally seems to be the ones in the last 6 months lenders worry about. I've had tonnes in the last year, but waited just over 6 months from the last search and had no problem opening 3 new current accounts.

matttye

Gordon_Hose wrote: »

Sorry, but any default on your file is far worse than a missed payment.

Even when applying for 'bad credit cards' that are aimed at people with previous CCJs and defaults and the defaults are from four years ago but the missed payments are current?

Gordon_Hose

No lender has to give you a card though.

Defaults have a huge effect for pretty much their whole life, accompanied that with late payments you're not an attractive option for lenders.

Even if you didn't have late payments a default is pretty much a deal breaker for most. I had defaults and no one would touch me until they dropped off, even the bad credit card companies.

Herbalus

212 wrote: »

Hardly anyone searches Noddle (Call Credit) for *actual* credit applications though. My report is full of pre-application searches (Barclaycard) plus identity verification from travel agents/money exchange places and then pages of car insurance quotes - not one credit application search.

I agree - my report only shows 2 searches in the last 3 years, both from insurance. It makes me wonder why I bother to check it!