Can someone help me understand?

DukeFleed

Hiya, noob here so go easy!

I'm wondering if someone can please help me understand why I always have such a hard time getting accepted for credit. I have a default on my credit file from 2009, it was for ~£170, and has since been paid in full. This was a time when I was in financial difficulty and out of work. Stupidly, I ignored it rather than dealing with it there and then, and I accept it'll remain on there for another 2 years. However, since then I've been extremely careful, pay every single bill on time, and never miss a single payment. I've also been on my electoral roll for 16 years, so I know that isn't it. Yet whenever I apply for anything, it gets declined.

I got a Vanquis credit card last year to try and improve things. The APR is stupidly high, but that's not a problem as I pay in full each month. they've recently increased my credit limit from £500 to £1000, but that's irrelevant as I won't be spending it. I then I applied for a card from my bank, and was declined. Now today, I make a car finance application, and get declined for that too. The searches are spaced out, so I know that's not the problem. Can that single settled default really mess things up that badly, or is there something else that I'm missing?

Any help would be greatly appreciated

The_Boss

Yep, a default is a BIG deal to a lender. Why would it not be when it shows that the person could not fulfil afinancial commitment? New lenders will worry that could also happen to them. Vanquis not so much as you are their target market and are mitigated with a high apr and low credit limit.

Has the default been satisfied?

Dean2013

What other lines of credit other than your Vanquis Cc do you have and what's you income?

Yes I default will have a big effect.

DukeFleed

thanks for the quick responses.

yes the default has been paid in full. I take full responsibility for it, but it's 4 years now, and my payments for everything have been impeccable since then. surely that is as much a indicator of my potential behaviour as a single error made 4 years ago?

my income is now well above average, and aside from my CC I also have two current accounts and a mobile phone contract

Experian_company_representative

Actually the increased credit limit should help credit scoring as long as you don't regularly spend up to the new limit - we recommend you avoid spending more than 25-30% of the limit on your cards. But perhaps the default is still dragging your score down significantly. While its influence is likely to be diminishing as it gets older, you may continue to experience difficulties until it drops off your credit report altogether, six years from the default date.

James Jones

DukeFleed

Interesting. I've been spending up to 90% of the limit (and repaying in full) in order to get my limit raised. I didn't think that would be possible without doing so.

Davie2909

Default is a big thing but since its been paid in full and is 4 years old it should be less of an issue.
Do you have any other cards than your Vanquis card? Or Mobile phone contracts etc?
The more you have and paying regular then the less of a risk you become!

DukeFleed

see above. no other cards, two current accounts, and one mobile phone contract.

matttye

You're in a similar position to me. I've got a sub-prime CC with CapitalOne but any mainstream lender turns me down flat for most credit.

Recently got a current account with Santander, but that's all.

Just wait for the default to drop off and you should see a dramatic difference. Try not to apply for anything in the year preceding the default dropping off.