Credit Score Mystery

bloc75

Honestly getting so fed up with how these people judge you without really looking at you. You almost feel like a criminal.

Ok, so I went into an IVA about 8 years ago, paid it all up fine. My credit score is currently 399 with Experian. 1 point below a Good rating.

I have no loans, I just have a credit card with a 1k balance and another credit card with £300 balance.

I work in a job which pays me £42k a year and my total outgoings are around £1k per month, gives me a surplus of £1600 approximately. So my affordability is really good.

I wanted to purchase a diamond ring from a well know jewellers. I was willing to pay £350 up front, with the rest on finance. Now I asked for the finance because the total cost would have exceeded my surplus. Isn't that why people ask for finance???

Anyway, I got declined. I asked them why and they said to not call, but to email. They gave me some half baked story about this and that, you know the usual fluff when telling people why they have been refused credit.

I emailed them back for more information and then they gave me a similar story.

I basically didn't meet the minimum requirements. I was only asking for something like £1300, and could quite comfortably pay that back monthly with no trouble at all. I just wanted the ring sooner for personal reasons.

They also said they contacted a CRA and fraud prevention database but said that had no bearing on their final decision.

Now my issue is this. How can you improve your chances if you don't know why you were refused???

Sure if I had CCJ's, or was blacklisted, but I don't and I am not. It's just ridiculous.

Now with my job I have to travel so I wanted to perhaps get a car that I can rely on for the miles I am going to be doing, now I don't think I am going to get finance for that.

Also me and my partner are looking at moving to a bigger property, but I reckon I will be knocked back for a mortgage too.

I just have no confidence in the banking system whatsoever.

Frustrated.

glentoran99

Your two credit cards, how close are you to the limit? and if you can comfortably afford then why is there a balance?

rolls99

Without meaning to sound cheeky; with a £1600 surplus per month, if you're not saving this in a locked account, why would you even consider paying for something on Credit?
As Glentoran mentions, to be running a balance on two cards which totals less than your monthly surplus seems odd (promotions, money tied up excepted of course).


With your surplus, you could pay off both cards, and pay for the ring on a card and cash, achieving the same thing but without a new credit agreement, and, having cleared a card to boot!

bloc75

Because I've only just started this job, so I don't have the surplus money as yet.

glentoran99

bloc75 wrote: »

Because I've only just started this job, so I don't have the surplus money as yet.

There ya go then, possible mystery solved, You haven't been in your job long, which would be a big factor on someone giving you credit,


So im guessing your cards are close to the limit and have you been paying just the minimum payment for a while?

bloc75

I have around 3k limit on one that I owe 1k on, and 2k limit on one I have £300 on, but I don't want to use my credit cards to the limits.

So how long would I need to be in a job for before they can give me credit?

It's the unknown reasons which bug me, I don't get what the big secret is.

Thrugelmir

bloc75 wrote: »

I just have no confidence in the banking system whatsoever.

Frustrated.

Nor has the finance industry in you.

Ok, so I went into an IVA about 8 years ago

There's no right for lenders to conduct business with you until they wish to. That's life.

DCFC79

Your credit score/rating means nothing though, lenders don't even see it, your history is all that matters.

bloc75

Rubbish.

It's not like I wanted to go into debt, and it's not like I didn't want to pay my debts. People go bankrupt and pay nothing back.

I have worked so hard to repay my debts, I have worked so hard to get myself into a position where I can earn decent money.

I don't think it's too much to ask for these so called lenders to say exactly why I didn't get accepted.

If they could say well you need to do this and that, and you will be fine.

I actually happened to work for a financial institution about 10 years ago as a temp and I learned that unless you took out PPI, then it made no odds what your affordability was, you weren't getting the loan.

glentoran99

That's just what they told you to say, all part of the poi misselling nonsense

bloc75

DCFC79 wrote: »

Your credit score/rating means nothing though, lenders don't even see it, your history is all that matters.

Is that right? So I need to show what? That I pay back stuff right away, that I've never had any issue with creditors?

Well I've never had any court judgement, never been bankrupt.

I mean for crying out loud, my credit score plummeted because I was in Canada for 4 months and not on any electoral roll.

I've heard stories of people who have racked up debts of over 100k on credit cards, and not even super rich people. What's that all about?