refused credit

spangles1967

hi,i am looking for some advice,my husband applied for a mobile phone contract(always used pay as you go) and was refused.we couldn't understand it as he has no debt.After doing the 3 credit reports it turns out that he had a financial associate on his Experian report(score 968) going back to 2005.It has since been removed.The financial associate hasn't shown up on the other 2 reports.I applied for the phone in my name and I was refused too,i done a report on me and scored 968 with 1 alert as I had only just taken a mobile contract im my name 4 weeks previous.I am usure what to do now,does he reapply or wait a while,he hasn't had credit since 1999,no credit cards or mortgage as its paid off.Many thank

Candyapple

The fact that he has no credit history is probably what caused the decline as the lender has no indication of his repayment history. He should probably take out a Capital One card or one of the other cards that allow you to build your credit history and use it for monthly spends with a DD set up to clear it monthly and wait a further 6-12 months before applying for the phone contract again.

spangles1967

Thankyou for the reply,that what he will do.He was mortified and said hes getting punished for not having debt.I think it was the financial associate that stopped him getting it as the person has got theirselves in deep debt.

spangles1967

I just goes to show that when you sign as guarantor for someone and even if that debt is paid in full and on time it stays on your record even after all these years.We thought it would be wiped as it had been paid but Ive since found out that you need to apply for them to be taken off.A big lesson learned.Also when husband done credit reports it showed a few searches for the financial asscociate.I did wonder why the financial associate could get so much credit 3 years ago but it turns out it was because my husband and them were linked and husband had a good credit rating.

[Deleted User]

spangles1967 wrote: »

He was mortified and said hes getting punished for not having debt

Not quite. Lenders are just cautious because he hasn't demonstrated he can handle credit.

Regularly use of a credit card will fix this though, as suggested by Candyapple.

spangles1967

Thankyou for the reply.He needs to get a credit card but he is wary of applying for one incase he gets refused.He is still looking at it the old fashioned way.Gone are the days when it was better to have no credit,we have now realise that its better to have a credit trail.Many thanks again

spangles1967

will it make any difference if we pay monthly credit card payments in branch or by DD.thankyou.

Candyapple

spangles1967 wrote: »

will it make any difference if we pay monthly credit card payments in branch or by DD.thankyou.

Shouldn't make any difference, however DD will save you time and transport costs in getting to a branch, waiting to pay etc. Plus if you are ill or can't make it to the bank in time, a DD will negate the need to remember to pay off your balance every month.

Don't forget to obtain copies of his report from Equifax and Noddle too in order to remove the financial association from those files as well.

spangles1967

That makes sense.The financial association didn't appear on Equifax and callcredit so I haven't applied to have them removed.I have assumed that there is no need as they are not on it.Have I done the right thing or should I still apply to have them removed.Thanks.

Candyapple

spangles1967 wrote: »

That makes sense.The financial association didn't appear on Equifax and callcredit so I haven't applied to have them removed.I have assumed that there is no need as they are not on it.Have I done the right thing or should I still apply to have them removed.Thanks.

If they're not showing on the other two files then you don't need to take any further action.

As well as Capital One, there is the Barclaycard Initial or Aqua card he could choose from as credit builder cards. Don't forget to set up the direct debit to take the full statement balance every month, as opposed to the minimum payment. Hopefully in 6 months or so your partner should have 6 green zeroes showing on his credit report and possible credit limit increases. Once the card is 12 months old, he could close it (to show on his files as a succesfully closed account) and begin to apply for other cards such as cash back cards and run his account the same manner so he can gain some benefit to using a card as well as building up his credit history in the process.

spangles1967

Thankyou for all the helpful information,its so much appreciated.