Excellent credit score, turned down

clarab_3

sorry guys I know you must have answered this countless times but I'd appreciate some help.

I have a score of 970 at Experian - I know that isn't everything but as I havent been able to check Equifax etc yet I was careful to apply for my loan at Tescobank because they use experian only and thought that should be safe.

I have some credit cards which I make regular payments on, about £1000 outstanding on credit limits I keep carefully under control at £3000.
I have not missed any payments in over 2 years.
I had a default 4 years ago for £500 on a next catalogue when I lost my job at the height of the recession, but have been an angel since.

I earn well and have £1k to spare each month after all bills (sorry I know that sounds like I'm all full of it, Im just trying to prove that this is affordable!)

I was just wanting a loan for a car of £5k as I have got a new job and will need to drive there. I will happily save for that car now, I guess I just wanted to drive rather than blow £250 a month on trains.

Has anyone any ideas how I can repair this situation? I now have a declined application on my credit file too and was hoping to move home next year - mortgage worries me!

I know the default is bad, but I am an incredibly boring and sensible soul with my money these days and save for anything I need (except emergencies like the car). I have taken no new credit in 4 years and never have anything more than a small balane on my cards.

The_Boss

You don't have an 'excellent' score or in fact any score at all. Lenders assess you differently to Experian/Equifax etc and assess applications (including data not on your credit file) for different products differently.

The default won't help and I'd bet my last pound that you failed their credit test because of this and the fact you have just started a new job. This makes you a big risk. When did you start?

matttye

Pick up a used car for £1k and it's yours! Probably have no need to even save for one. My car cost me £1,500 with 40k miles on the clock, had it a year now and no problems whatsoever with it.

As for your credit score, don't pay any attention at all to the Experian score as lenders don't see that score or take it into account. They will score you based on their own criteria using the information in your report.

I have two 4 1/2 year old defaults and an arrangement to pay from around the same time. No missed payments for about 4+ years now. I still get turned down for 'prime' credit just like you, but I got accepted for two credit cards, one with Aqua and the other with Capital One. I pay for fuel and occasional small purchases and pay in full every month. Would suggest you get a 'bad credit' credit card too as this will improve your creditworthiness. Pay in full so you don't pay any interest.

Then you can apply for a loan again in about 6 months and see if they're willing to lend to you if you still need one.

clarab_3

The_Boss wrote: »

You don't have an 'excellent' score or in fact any score at all. Lenders assess you differently to Experian/Equifax etc and assess applications (including data not on your credit file) for different products differently.

The default won't help and I'd bet my last pound that you failed their credit test because of this and the fact you have just started a new job. This makes you a big risk. When did you start?

I havent started yet. In fact I am still to resign from the company where I have spent last 4 years. (Boss back in on Monday)

I know its the default. Its just a crap crap lesson to have to learn, I thought my job was safe, I had savings... but they ran out just before I could get a new job. Priorities like mortgage, council tax and electricity had to be paid

clarab_3

matttye wrote: »

Pick up a used car for £1k and it's yours! Probably have no need to even save for one. My car cost me £1,500 with 40k miles on the clock, had it a year now and no problems whatsoever with it.

As for your credit score, don't pay any attention at all to the Experian score as lenders don't see that score or take it into account. They will score you based on their own criteria using the information in your report.

I have two 4 1/2 year old defaults and an arrangement to pay from around the same time. No missed payments for about 4+ years now. I still get turned down for 'prime' credit just like you, but I got accepted for two credit cards, one with Aqua and the other with Capital One. I pay for fuel and occasional small purchases and pay in full every month. Would suggest you get a 'bad credit' credit card too as this will improve your creditworthiness. Pay in full so you don't pay any interest.

Then you can apply for a loan again in about 6 months and see if they're willing to lend to you if you still need one.

Thanks, thats probably exactly what I will do, I have that in the bank. It was just the 80 mile round trip alone in the winter that was making me cautiously think of something newer, with a warranty!

As to the house, I guess its 2-3 years away until that bloody default drops off the report. More time to save a better deposit I guess, but a long time to have to do an 80 mile round trip to work!

The_Boss

clarab wrote: »

I havent started yet. In fact I am still to resign from the company where I have spent last 4 years. (Boss back in on Monday)

I know its the default. Its just a crap crap lesson to have to learn, I thought my job was safe, I had savings... but they ran out just before I could get a new job. Priorities like mortgage, council tax and electricity had to be paid

It is harsh but its there to protect other lenders as well as serving as retribution even though circumstances may be different.

This case epitomises the worthlessness of these scores and illustrates that having a default means you cannot have an 'excellent' credit rating.

izools

clarab wrote: »

I have a score of 970 at Experian

I had a score of 980 with Experian.

With six defaults and a bankruptcy order on my credit file.

You-kip

izools wrote: »

I had a score of 980 with Experian.

With six defaults and a bankruptcy order on my credit file.

That is a classic and should be a headline sticky at the top of credit files page.

LeeThePlumber777

izools wrote: »

I had a score of 980 with Experian.

With six defaults and a bankruptcy order on my credit file.

Wish I read this before paying the £15 to resign with experian!

Why do they do it?

In fact that's probably a dumb question because it obviously gives you false hope that you can in fact apply for credit etc

You-kip

LeeThePlumber777 wrote: »

Wish I read this before paying the £15 to resign with experian!

Why do they do it?

In fact that's probably a dumb question because it obviously gives you false hope that you can in fact apply for credit etc

Don't take this the wrong way but they pray on the weak & gullible to make profits.
They don't lend money so there's no Risk involved in it for them.

ch3101

What reason did Tesco give for the decline? That might give us a bit of insight into what was wrong.