Bad Credit Rating

gemschmoo

Hi all!

I went to an 02 store yesterday to enquire about getting a new phone contract (parents paid my last one 2.5 years ago), however I was rejected due to bad credit.

I am not a high earner (1000 p/m), I have no debts (except student loans), but I have a credit card I never use. I have recently moved and I'm not currently on the electoral register.

I have applied to Credit Expert and also Equifax so far to try and get my credit rating to see if there are any unforseen problems. Will it be a case of applying to go onto the electoral register and beginning to use my credit card to increase my credit rating?

Thanks in advance!

The_Boss

Not being on the electoral roll is a key issue. That will help a lot. How long have you held the credit card for?

Who told you that you have 'bad credit' or a 'bad credit rating'?

If you are doing the Credit Expert and Equifax online trials be sure to ignore their 'credit scores' and certainly do not pay extra for them.

gemschmoo

I have filled out the forms this evening for the electoral register, so that will be sorted ASAP I was on it at my previous address, just never got around to registering when I moved.

I have had the credit card for approximately 6 years - I was convinced by the bank to apply for one when I was 18 when opening my student account. Like I said earlier, it has never been used.

As for the 'bad credit', that is what the gentleman told me when I was rejected?

Why would you ignore Credit Expert etc credit scores? Sorry, I'm new at this whole thing, and slightly confused what my next step is . . . . .

The_Boss

Is the credit card also registered at your current address? You should start to use it and repay in full each month - no need to spend big sums - even a few quid each month is plenty.

The Credit Expert (Experian) and Equifax scores do not take into account a great amount of relevant data that lenders use to assess your creditnworthiness. The scores are basically a money making opportunity as they have such little relevance. You do not have a fixed credit score. Lenders all assess you and weight application data differently to produce their own score that determines whether they offer you a particular fnancial product.

So for the person to say you have 'bad credit' is totally misleading. All they know is that you failed their credit scoring process on this occasion - nothing more, nothing less. I suspect the electoral roll issue is the main factor in you not successfully applying, which is nothing to do with 'bad credit'. If your credit card has data reported for those 6 years and data reported correctly on your file (i.e. no late payments/defaults, which there won't be if unused) then you clearly do not have 'bad credit'. This person guessing is comparable to Experian/Equifax guessing about your 'credit score'.

gemschmoo

Hi again,

Thank you for all of your information in the above posts - it is really very helpful to have someone explain all of this. My credit card is registered at my current address, as with my current account, savings account and my joint account with my partner (my being rejected is pretty sure not due to association with him as he also has no debts etc)

I will definitely start using my credit card more, and my electoral forms have been sent off this morning I have signed up for credit expert more to check for anything untoward eg credit fraud than for the actual score, when I can see the full reports I will cancel.

Does anyone have any idea when it would be a good idea to apply again? I have read of a variety of different time scales before the electoral records are updated

Cycrow

The electoral roll sounds like it might be whats causing the problem. So i would wait until thats fully updated and showing correct on your credit report.

i would sign up to noddle so you can keep checking that for free until its updated.

its not a quick process thou so you could be waiting awhile. Something you might be able to do is speak to the network directly that you want the phone with and see if they can manually check your credit report and you might have better luck (most likly they will ask for documents to confirm your address).
I know Vodafone will do this (via thier forum), other networks might as well

Im still waiting for my details to be updated on the electoral roll. I sent in the information beginning of may, got a letter back to say they will update it in july, so most likly have to wait another month after that for the CRA to fully update

gemschmoo

Just tried to sign up to Noddle and it says it is unable to confirm my identity - reasons can include not being signed up to the electoral register

Who would have knows not signing up to the electoral register would cause so much fuss lol!

gemschmoo

Hi again,

Finally got onto the Experian/Credit Expert Website - credit score of 949 with 3 positive factors:

• The number of credit accounts you are using is low
• You have no recent searches on your credit report
• The balance of your unsecured lending indicates a lower risk

and 1 negative:



You have no successfully settled credit account

Could someone explain to me what this negative one means exactly?

sscott5581

gemschmoo wrote: »

Hi again,

Finally got onto the Experian/Credit Expert Website - credit score of 949 with 3 positive factors:

• The number of credit accounts you are using is low
• You have no recent searches on your credit report
• The balance of your unsecured lending indicates a lower risk

and 1 negative:



You have no successfully settled credit account

Could someone explain to me what this negative one means exactly?

It means you have no 'settled' credit account. i.e. credit account which have been closed by you with no issues and recorded with the cra as settled.

izools

I would ignore the negative.

The real negative points are:

1. Having a brief "Time at current address"
2. Not being on the Electoral Roll (yet)
3. The possibility that your accounts may still show as being registered at your previous address - if you've told the people you have accounts with your new address under two months ago chances are there will be no electronic record of you living at your current address at all, it takes them a while to update.

I'm sure if you try again in six months there will be no issue

The_Boss

izools wrote: »

I would ignore the negative.

The real negative points are:

1. Having a brief "Time at current address"
2. Not being on the Electoral Roll (yet)
3. The possibility that your accounts may still show as being registered at your previous address - if you've told the people you have accounts with your new address under two months ago chances are there will be no electronic record of you living at your current address at all, it takes them a while to update.

I'm sure if you try again in six months there will be no issue

Good advice. Better than that offered by the CRA and their ridiculous score. And you won't charge for it after 30 days, unlike Experian.