Fair Credit Score but unable to obtain Overdraft

EmzMac87

Hi there,

I am looking for some advice please. I have a credit score of 863. I have no credit/store cards or loans. I have 1 default on my account from 2010 from an old mobile phone contract. Recently I have tried to set up a planned overdraft on my current account but was rejected. Can anyone tell me why this could be? I am employed and work full time and apart from that 1 default have no other issues.

Many Thanks in advance.

BugsyBrowne

For starters the banks don't care what score you have on Experian as they're meaningless numbers banged up for profit so ignore the silly numbers.

You'll struggle to get an overdraft with a default on your file as it shows you are high risk for lending.

Tixy

A default is likely to cause you problems with getting credit whilstever it still appears on your file.

Is the default satisfied?

Do you have any active credit accounts at all on your file? if not you may want to try to start building up a credit history with something like a phone contract or subprime card so that when the default drops off you should then be more likely able to get mainstream credit.

EmzMac87

Hi there,

Thanks for the replies. The default is satisfied, I had actually forgotten all about it until I registered with Experian and saw it on my credit report as I paid it off a long time ago. At the moment I don't have any active credit accounts on my file. I applied for an Argos card a while back and was also rejected. I will look in to the subprime card and see what that involves.

Thanks!

Tixy

Have a look here - http://www.moneysavingexpert.com/credit-cards/bad-credit-credit-cards

Some have pre-eligibility checkers which will give you an indication as to whether you might be accepted.

These are high interest cards though so best to only use for credit building purposes and to repay in full each statement so that you don't pay any interest.

DCFC79

Whats the overdraft for ?

EmzMac87

That's brilliant, thanks for your help.

EmzMac87

DCFC79 - I wanted the overdraft for emergency purposes really, £100 is all I applied for as the date of one of my direct debits varies and often ends up coming out the day before I get paid. It's not a huge problem that I can't get one. Just wanted to know why.

Experian_company_representative

Definitely worth trying to strengthen your credit history with some new positive data, as others have had. A bad credit credit card might help, if you use it wisely. Bear in mind that taking on new credit is likely to cause your credit rating to dip for a few months. Always best to space out any credit applications you make for this reason.

James

Thrugelmir

EmzMac87 wrote: »

I wanted the overdraft for emergency purposes really, £100 is all I applied for as the date of one of my direct debits varies and often ends up coming out the day before I get paid..

Sounds as if you need to cut back for a couple of months and get some savings together. From the banks point of view you don't appear to be managing your money very well. The overdraft will start at a £100 and spiral away from there.........