Refused credit from CSL/Sofaworks despite very good credit rating

Cycrow

GeorgeRob wrote: »

Thanks Katie. Yes that is a possibility isn't it. Can anyone confirm, does that information appear on your credit file though? I thought it was only if you default on something - such as going over your OD limit and don't get money back in there in time.

All credit should appear on your file, it doesn't just list the negative things.
so it will list your overdrafts, and what you are using on them each month, as well as listing any credit cards you have, how much you put on them, their balance, how much you pay off each month, etc.

Credit checks are not just checking for bad markers like defaults/late payments, they are also checking for positive ones, what credit accounts you have, and how you are using them.

So someone who has never had credit before will have nothing bad on their file, but can still be refused, because they dont have anything good either.

Constant use of overdraft is often see as a bad thing, as it looks like you cant budget properly and need to use credit each month to cover expenses.

The electoral roll is pretty important for lenders, as it is used to verify identity and address. Its not impossible to get credit without, but its alot more difficult

GeorgeRob

Cycrow wrote: »

All credit should appear on your file, it doesn't just list the negative things.
so it will list your overdrafts, and what you are using on them each month, as well as listing any credit cards you have, how much you put on them, their balance, how much you pay off each month, etc.

Credit checks are not just checking for bad markers like defaults/late payments, they are also checking for positive ones, what credit accounts you have, and how you are using them.

So someone who has never had credit before will have nothing bad on their file, but can still be refused, because they dont have anything good either.

Constant use of overdraft is often see as a bad thing, as it looks like you cant budget properly and need to use credit each month to cover expenses.

The electoral roll is pretty important for lenders, as it is used to verify identity and address. Its not impossible to get credit without, but its alot more difficult

Thanks for the advice. I can't see anywhere on the file where it details my overdraft usage though.

I see what you're saying about not having any credit at all perhaps being a negative - but I've had numerous credit accounts (mobile phones, car insurance (which is a credit agreement enabling me to pay in instalments), credit cards, loans, overdrafts - all of which I've paid off in full and never missed a payment for.

GeorgeRob

UPDATE:

I called Barclays Finance, and they said they use Experian - and although they can't tell me exactly why I was refused the credit - they said they can see I *AM* on the Electoral Role (with Experian), so that wouldn't have been the problem.

SO..

Could it be the fact I was refused credit by Very.co.uk back in December (which *was* because of the Electoral Role - as Very use Equifax, who don't have me on the ER for some reason)?

So perhaps Barclays are just seeing that and thinking it spells trouble?

Very very annoying anyway.

GeorgeRob

What about other options - such as using a credit card instead? I have a £1300 credit card with Lloyds, and the sofas cost £1249. What if I buy the sofas on this? I think from memory the minimum payment for this card when maxed out was something like £35 a month.. but obviously that is no good as I wouldn't be paying off the card. So what if I balance-transferred to a long (eg 30 month) 0% card? Then my £35 a month would actually be paying off the £1249 cost of the sofas wouldn't it? Then when it comes to the end of that 30 months, I'd have to balance transfer again to another 0% card for the remaining 6 or so months, is that right?

Could someone in-the-know advise me on this for me please?

GeorgeRob

I've also just looked into peer-to-peer loans.. got a quote for £1249 from Ratesetter -

Monthly cost £36.45
Total Cost £1,750.36
APR 19.2%

It would be annoying to pay almost £400 more though!

Cycrow

GeorgeRob wrote: »

Thanks for the advice. I can't see anywhere on the file where it details my overdraft usage though.

I see what you're saying about not having any credit at all perhaps being a negative - but I've had numerous credit accounts (mobile phones, car insurance (which is a credit agreement enabling me to pay in instalments), credit cards, loans, overdrafts - all of which I've paid off in full and never missed a payment for.

All of those should be showing on your credit file. When accounts are closed they should remain on your credit file for 6 years. If it was more than 6 years since you closed them, then they will now make no difference.

Are these accounts all showing on your credit file?

Also remember to check all 3, as not all lenders reports to all the CRA's so some accounts may only appear on 1 of the 3 files (most are usually on all 3)

GeorgeRob wrote: »

Could it be the fact I was refused credit by Very.co.uk back in December (which *was* because of the Electoral Role - as Very use Equifax, who don't have me on the ER for some reason)?

very unlikely, as credit reports dont show if applications were refused or accepted, only that a search is done. so the only thing showing from the very account would be a search, and a single search wont make much difference

GeorgeRob

Cycrow wrote: »

All of those should be showing on your credit file. When accounts are closed they should remain on your credit file for 6 years. If it was more than 6 years since you closed them, then they will now make no difference.

Are these accounts all showing on your credit file?

Also remember to check all 3, as not all lenders reports to all the CRA's so some accounts may only appear on 1 of the 3 files (most are usually on all 3)

very unlikely, as credit reports dont show if applications were refused or accepted, only that a search is done. so the only thing showing from the very account would be a search, and a single search wont make much difference

With Equifax, everything (loan, credit card, all current accounts & phone contracts) is showing on my credit file under the "Credit Agreements" section, *EXCEPT* my car insurance, which I've had from the same company for the last 4 or 5 years. So that's strange. I will check my Experian file when I get home.

With regards to the number of searches, all I can see is the Very search back in december, plus quite a few "Consumer Enquiry" searches labelled Equifax. I'm guessing these are searches I've done myself with Equifax? These wouldn't count against me though would they?!