Excellent credit rating but getting refused

angelene

Hi all

I'd like to get a 0% spending card, to cover a car service that I know will be around £500 next month. Yesterday I did the MSE pre-elegibility checker and it suggested I had a 70% chance of being accepted for the Fluid 16 months card. I did THEIR pre-eligibility check on their site (which won't affect my rating) and it said I wouldn't be accepted.

I was surprised at this, both because I've never been turned down and because I'd had the MSE 70% rating.

Today I tried the RBS YourWorld card and got declined outright. Really strange.

So today I got my credit file and scores from both Experian and Equifax. I've got 503/600 on Equifax and 975/1000 for Experian - both well into the 'Excellent' bracket. I can't understand why I have been turned down.

On the Equifax report it says I was late paying on two occasions, one from September 2008 and one (on a different account) from August 2011. It gives this indicator as 'Fair' and says that if there are other risk factors on my report then I could be turned down.

I've also very recently transferred all my credit card debts onto 0% cards and closed down two cards. Would the fact that this is 'in the system' as it were mean that lenders are being a pain?

I'm just really confused as to why I might be refused TWICE! Anyone got any ideas?

Tixy

How recent did you transfer your card balances around?
Did you make new card applications to do so? how many?

Does your credit file now show the balances correctly on the new cards and paid off the old cards?

Do you have a high level of debts compared to your income?

Was either of the 2 cards you have just closed from the same card provider as you have just been declined by?

Drp8713

In two seconds you will get people telling you that credit scoring is worthless.

In the meantime you may want to look at things that might not be on your credit file. Whats your income? How long have you been at your work place / current address.

If youve lived and worked at the same places for 10 years and are on 50k a year it might just be those late payment markers

angelene

Thanks for replying. OK, to answer these one by one:

I've transferred the balances around in the last month. No new card applications, they're all onto cards I've held for at least 3 years each.

The two I've closed are shown as £0 but not settled.

Not sure what a high level of debt is compared to my income, it's about 50%, is that high?

I don't think so, one was NatWest and the other was Barclaycard, I don't think they're related to Fluid and RBS are they?

Trapezius

If I recall correctly, NatWest and RBS are.

I googled. They're both parts of the RBS Group, which may explain it.

angelene

I'm part time so my income is £23k but my husband is on £42k and we've been at our house (homeowners) for 9 years.

Have lenders changed policies drastically in the last couple of years with regard to lending?

Thanks for responding btw.

The_Boss

The Experian and Equifax scores that you refer to as 'excellent' are almost worthless. Neither are lenders. Lenders score you differently using a wider range of data (from your application form) that Experian/Equifax do not consider. So it is not accurate to assume that you have an 'excellent' score if you are going by what they say.

Tixy

Natwest and RBS are the same bank.

With regards to debts - once people try to borrow more (in total) than around 50% of their gross annual income reports on here suggest it tends to get more difficult / more likely to be declined. Its not a hard rule but tends to be around that level that lenders get more cautious in the current climate.

edit - fluid is an mbna card apparently

angelene

Oh. It's a shame that the MSE site suggested I check them then.

OK Tixy, thanks for this. Looks like the level of debt is the problem. I'll have to try and find the money elsewhere then!

The_Boss

And on a side note...something else for the 'Experian score' apologists to consider - an 'excellent' score with late payments on file. Not quite as bad as the same score witg multiple defaults, but still...

The_Boss

angelene wrote: »

Oh. It's a shame that the MSE site suggested I check them then.

You should definitely check your credit reports, but the scores aren't worth bothering with