Credit rating - still poor after 2 years

Zakath

First, apologies for the long post. I would like to ask for your help in explaining what is wrong with me as I’m pretty desperate and I don’t really have anyone to turn to.

I relocated to the UK because of my job in July 2012 and have been living here since. Last year I wanted to apply for a credit card so I called my bank (Lloyds) with which I’ve been banking since I came here, applied and got turned down in a split second. I was quite shocked to be honest since I have decent job, regular monthly salary inflows and £20k balance then. I was told that the reason is that my credit rating is too low and that I should look into that.

I then signed up for Experian and my credit score in Nov 2013 was 750. I thought that this was not bad so I blamed it on my bank, googled a bit and applied for an “initial” credit card – Barclays this time. Bang – rejection. This made me quite worried – applied for one more and again rejection. Went back and checked diligently my credit report – all the details looked fine (back then I only had my bank account + electoral roll registration). I called a couple of friends and the conclusion was that I won’t get a normal credit card and need to get a “credit builder” one – which again, I did and received Vanquis card with an absurd limit of £250.

Now, 6 months into my Vanquis card I’m still stuck with £250 and I feel cheated – Vanquis said my limit will be doubled after the 4th month, I called them up and got some rubbish that this is not automated and I need to wait. Always paid on time and this is what I get, treatment like a subhuman.

What makes me desperate is that apparently I’m the only one amongst all the people that I know that is getting this! To give you an example - my friend arrived in the UK half a year ago (having never previously lived/worked there) and in his first month here he got £400 Barclays credit card just like that. A couple of months later he switched accounts and got £1,200 for doing that.

Could someone explain what is wrong with me, my credit score or this country?

My Experian credit report elements include:

• Electoral roll registration since Oct 2012
• Lloyds account since July 2012 with overdraft, never used
• Vanquis account since Nov 2013, always paid on time
• No such things like bankruptcies, defaults, etc.

Little more details:

• I pay a rent for single room which includes all the bills + council tax (I don’t see them)
• My contract mobile phone is not reported the credit report
• Not sure if relevant but I recently tried to check for eligibility for Barclays Initial again and strangely when I use the webform I always get “error, your details could not be found”. Tried various combinations but always get this error.

Much appreciate all the help I can get – I’m sick of all of this, what the hell did I do to deserve such treatment?


Best regards,


Zakath

20aday

Zakath wrote: »

First, apologies for the long post. I would like to ask for your help in explaining what is wrong with me as I’m pretty desperate and I don’t really have anyone to turn to.

I relocated to the UK because of my job in July 2012 and have been living here since. Last year I wanted to apply for a credit card so I called my bank (Lloyds) with which I’ve been banking since I came here, applied and got turned down in a split second. I was quite shocked to be honest since I have decent job, regular monthly salary inflows and £20k balance then. I was told that the reason is that my credit rating is too low and that I should look into that.

I then signed up for Experian and my credit score in Nov 2013 was 750. I thought that this was not bad so I blamed it on my bank, googled a bit and applied for an “initial” credit card – Barclays this time. Bang – rejection. This made me quite worried – applied for one more and again rejection. Went back and checked diligently my credit report – all the details looked fine (back then I only had my bank account + electoral roll registration). I called a couple of friends and the conclusion was that I won’t get a normal credit card and need to get a “credit builder” one – which again, I did and received Vanquis card with an absurd limit of £250.

Now, 6 months into my Vanquis card I’m still stuck with £250 and I feel cheated – Vanquis said my limit will be doubled after the 4th month, I called them up and got some rubbish that this is not automated and I need to wait. Always paid on time and this is what I get, treatment like a subhuman.

What makes me desperate is that apparently I’m the only one amongst all the people that I know that is getting this! To give you an example - my friend arrived in the UK half a year ago (having never previously lived/worked there) and in his first month here he got £400 Barclays credit card just like that. A couple of months later he switched accounts and got £1,200 for doing that.

Could someone explain what is wrong with me, my credit score or this country?

My Experian credit report elements include:

• Electoral roll registration since Oct 2012
• Lloyds account since July 2012 with overdraft, never used
• Vanquis account since Nov 2013, always paid on time
• No such things like bankruptcies, defaults, etc.

Little more details:

• I pay a rent for single room which includes all the bills + council tax (I don’t see them)
• My contract mobile phone is not reported the credit report
• Not sure if relevant but I recently tried to check for eligibility for Barclays Initial again and strangely when I use the webform I always get “error, your details could not be found”. Tried various combinations but always get this error.

Much appreciate all the help I can get – I’m sick of all of this, what the hell did I do to deserve such treatment?


Best regards,


Zakath

Hello Zakath,

BIB: Your Experian "score" is meaningless, I'm afraid. The Credit Agencies don't lend you any money; it's just a computer generated score...

Other people with more experience will be better placed to help you here but one thing that may help your credit file is the following card:

http://www.mycashplus.co.uk/cashplus-extras/creditbuilder.aspx

They charge you the monthly fee upfront then take the payment monthly, reporting to the credit agencies.

After a year it'll show on your account that you've paid on time and will help you in other credit applications in the future.

I appreciate you've got a good income, have been in the UK since 2012 (and even on the Electoral Register, which helps) and it's frustrating (to say the least) but as someone who was (personally) silly in the past with money, these things can take time.

Sorry I couldn't help you any further.

Neil

Thrugelmir

Zakath wrote: »

Much appreciate all the help I can get – I’m sick of all of this, what the hell did I do to deserve such treatment?

Unsure why you expect any special treatment. There's no right to obtaining credit. Days of easy lending are over. This now an era of responsible and affordable lending.

From a lenders point of view you pose a risk. Continue to maintain the account you have in good order. In time the credit limit will be increased.

Tixy

Some lenders are pretty strict on requiring 3years of UK address history. So within a year or so you may find it easier to obtain credit.

Have you checked all 3 credit reference agencies and checked they all have the correct information for you (e.g. that all show you as being on the electoral roll etc).

Are you currently spending up to your £250 limit a month on the card you do have? do you repay it in full each month?

What is the main reason you want a higher limit? if its so you have the additional s75 purchase protection on purchases then one option can be to just pay a deposit on your credit card and the remainder by debit card, another could be to get the creditbuilder prepaid card and preload funds on to that to make your purchases, which unlike other prepaid cards is covered by section 75.

Zakath

20aday wrote: »

Hello Zakath,

BIB: Your Experian "score" is meaningless, I'm afraid. The Credit Agencies don't lend you any money; it's just a computer generated score...

Other people with more experience will be better placed to help you here but one thing that may help your credit file is the following card:

They charge you the monthly fee upfront then take the payment monthly, reporting to the credit agencies.

After a year it'll show on your account that you've paid on time and will help you in other credit applications in the future.

I appreciate you've got a good income, have been in the UK since 2012 (and even on the Electoral Register, which helps) and it's frustrating (to say the least) but as someone who was (personally) silly in the past with money, these things can take time.

Sorry I couldn't help you any further.

Neil

Thanks Neil for the response. Apparently credit score is not meaningless, at least not to my bank (Lloyds) as this was specifically the reason given why they I’m not eligible for their credit card. Pretty sure that the same case in other banks. Hence why my objective is to improve my score in the first place.

This Creditbuilder Cashplus MasterCard option is very interesting. However, do you think it makes sense to apply for it when I already have a Vanquis credit builder credit card? Would a better option be to wait for a credit limit increase (if that will happen of course)? Have you personally tried it?

Zakath

Zakath

Thrugelmir wrote: »

Unsure why you expect any special treatment. There's no right to obtaining credit. Days of easy lending are over. This now an era of responsible and affordable lending.

From a lenders point of view you pose a risk. Continue to maintain the account you have in good order. In time the credit limit will be increased.

I don’t expect a special treatment, I expect a fair treatment. My colleagues who came to the UK later than I did all have normal credit cards now (and they have similar circumstances – steady job, monthly salaries, rent one room inclusive of bills, etc.) and they never had to go through this rubbish – hence why I say there seems to be something wrong with my case, but I can’t see it on the credit report.

[Deleted User]

Zakath wrote: »

Apparently credit score is not meaningless, at least not to my bank (Lloyds) as this was specifically the reason given why they I’m not eligible for their credit card. Pretty sure that the same case in other banks.

They were either referring to the score that THEY have given you, or the letter was badly worded, or you misunderstood.

They don't even get to see your score from the CRA, so cannot make a decision on it.

Thrugelmir

Zakath wrote: »

Thanks Neil for the response. Apparently credit score is not meaningless, at least not to my bank (Lloyds) as this was specifically the reason given why they I’m not eligible for their credit card. Pretty sure that the same case in other banks. Hence why my objective is to improve my score in the first place.

And was mentioned by Tixy, a basic requirement may be 3 years residency on the electoral roll. Only time will meet certain criteria.

Which makes a score with Experian of 999 totally redundant and meaningless. Lenders will set their own criteria as to the people they will do business with.

Zakath

Tixy wrote: »

Some lenders are pretty strict on requiring 3years of UK address history. So within a year or so you may find it easier to obtain credit.

Have you checked all 3 credit reference agencies and checked they all have the correct information for you (e.g. that all show you as being on the electoral roll etc).

Are you currently spending up to your £250 limit a month on the card you do have? do you repay it in full each month?

What is the main reason you want a higher limit? if its so you have the additional s75 purchase protection on purchases then one option can be to just pay a deposit on your credit card and the remainder by debit card, another could be to get the creditbuilder prepaid card and preload funds on to that to make your purchases, which unlike other prepaid cards is covered by section 75.

That is a very good point Tixy – I have checked only Experian, I will try the other two – maybe something will come up.

The reason I’m so frustrated is because I know people that have same circumstances as I do, have been in this country way less than I, earn less etc. and magically they were given normal credit cards to begin with – which I see as tremendously unfair.

Since I was given my Vanquis card I’ve been spending up to my limit, never went over it, always paid in full. Yet, 6th month and I still haven’t received credit limit increase which they advertised was supposed to happen after 4 months of meeting criteria (which I meet).

I want a higher limit because it will further drive my credit score and I need it because I plan to take a mortgage in the next 2 years and start finally to live like a human being instead of renting all my life.

Zakath

Deleted_User wrote: »

They were either referring to the score that THEY have given you, or the letter was badly worded, or you misunderstood.

They don't even get to see your score from the CRA, so cannot make a decision on it.

Ok, I didn’t know that – I though they feed off the data from CRA directly or at least they base their decision on it. Thanks – very helpful.

pheonix254

A Credit "score" is meaningless. The credit score that Lloyds assigns to you is one their own systems spit out based on data from credit reference agencies. It is NOT the score that Experian, Equifax or Callcredit will give you if you pay them for it. LLoyds staff won't necessarily know that thouh - they're as clueless as the rest of us.

There are things you can do to improve your score, (electoral role, small amount of credit available managed properly and settling accounts) but building a score takes a lot of time. If you're not paying bills yourself (e.g. if your landlord pays electricity and water on your behalf, that's also a missing link which may harm your chances of acceptance.)

With credit, the only default (and fair) treatment you can ever expect is to not be eligable for it and be declined - It's in the hands of actuaries, who profile you based on what information they have. If their systems say you're not a good risk, they will not lend to you. there is no right to credit, even if you're responsible.

Just as if you and your colleague went and bought the same car and applied for car insurance - the chance of you getting offered the same premium for it is pretty remote.

It's a frustrating system, particularly if you don't fit a profile easily (e.g. you haven't lived in the UK your whole life at the same address, with one job), but it is the system we all have to live with. Until then, you have to live within your means without access to credit.