Credit Score & Aqua Card - declined

curious_1

Hi all,

I'm trying to build my credit score, but either it's not going too well or it's going way too slow.

So, it all started because I was out of the country for 2 years and the plan I had in place to pay monthly instalment did not work as I thought. As a result, defaulted on 3 accounts - £9, £222 and £1,186. All paid now, but the default still on there. I believe they'll be going off sometime this year.

Question: will the mark going off my account result in an increase of my credit score.

Also, I tried applying for Aqua, got declined. Although, now that I have £0. Will this increase my chances of getting a credit building card. Or will you advise me to add a note in my file (even though it gets checked automatically by machines - and won't care about the notes), explaining the situations behind the defaults. Will this increase my chances of getting accepted?

Thanks in advance.

Stevie_Palimo

Credit scores mean nothing at all so basically they are a complete waste of time and effort even to look up, If a lender wants to allow a cc to you they will and following a credit score as most people believe is not correct.


You could try Vanquis as they are another cc with high rates but aimed at the less than credit worthy types.

curious_1

Ah Thanks for this.

But saying this, would you recommend I bother then? Seeing as the only reason I needed a credit card is to increase my credit score.

If they aren't really worth looking up, then I shouldn't bother getting one?

To be honest, I've seen proof of your statement. I know of people who have been denied repeatedly only to be accepted after a few rejections. Only reason I didn't try again is the negative impact on the credit file - as I figured.

Stevie_Palimo

It is like this here :- A lender will work on many factors when looking at extending credit to an individual and whilst having things like a credit card, Mobile phone contract and the likes seem to help when looking for further credit it is down to how things are run, Ie:- payments made via dd are better than paying yourself at alternative times, Keeping within limits and not having lots of credit facilities at your use.


The Companies that all check you when looking at offering anything all claim they use the credit rating system and whilst this maybe true there are also lots of other factors involved like income versus outgoings, savings you make, and if it is a mortgage you require and you play things like bingo or online lotto these would be frowned upon by the potential lenders so it really is a complete guessing game as to why Company A may accept you and Company B may refuse you, This does seem to be an area discussed quite regular with no real answers as to why things are and are not accepted.

SeduLOUs

Whilst the defaults coming off your file will immediate 'improve' the overall picture, it doesn't necessarily mean that people will be happy to lend to you.

Assuming you've done nothing since those defaults, once they drop off your credit file will be a barren wasteland of nothingness. Having no credit history can often be as bad as having poor history, so in my opinion it would be worthwhile trying to get a card to rebuild some decent history with (i.e. spend regularly, pay in full and on time so you'll show you can manage the card and not pay the eye watering interest rates.)

Other 'bad credit' cards are available from Vanquis, Capital One and Barclaycard Initial. From personal experience Vanquis seem to give anyone a card, so perhaps try them next.

Re multiple searches - yes, this can be a negative, but a couple won't be the end of the world. I'd suggest for you that getting some history is more important that worrying about search numbers. At the same time, you don't want to overdo it and get auto-rejected in the short term. Try another application now/soon, and if rejected leave it at least 3 months before submitting an application for a different card.

Are you on the electoral role for your current address? If not, get that sorted before making any further applications.

curious_1

Cheers for the response Stevie and SeduLOUs.

Will try apply for vanquis now. Since I have no credit instrument in my name asides my phone bill - contract.

Hopefully it goes through.

@seduLOUSs - when you say history. DO you mean history of applying for credit - irrespective of the outcome? Or you mean credit history in general?

And yes, I'm on the electoral role for over 8 years now - at the current address.

Also, I'm under the impression if you apply for a card form the bank you are currently with. This may increase one's chances. True or False?

eskbanker

curious_1 wrote: »

Also, I'm under the impression if you apply for a card form the bank you are currently with. This may increase one's chances. True or False?

True, albeit only as a generalisation - if you run your current account(s) well for a reasonable period then your bank will have visibility of this and it's likely to be a positive influence on their internal scoring of a credit application, even though they'll get the same data as any other lender from the CRAs.

SeduLOUs

curious_1 wrote: »

Also, I'm under the impression if you apply for a card form the bank you are currently with. This may increase one's chances. True or False?

It can certainly help. Your credit file is fairly vague, but if you've been banking with someone for a while they have a whole pile of additional data on you that may help you. If you've made mistakes and had bounced direct debits or other similar things that don't show on credit files that additional data might count against you though.

Re history, I meant that you need a history of making payments on time to lenders. Once those old defaulted accounts drop off, if your credit file is left empty it doesn't really tell anybody anything about whether you are a good payer, and many lenders will assume the worst.

boo_star

SeduLOUs wrote: »

It can certainly help. Your credit file is fairly vague, but if you've been banking with someone for a while they have a whole pile of additional data on you that may help you. If you've made mistakes and had bounced direct debits or other similar things that don't show on credit files that additional data might count against you though.

Re history, I meant that you need a history of making payments on time to lenders. Once those old defaulted accounts drop off, if your credit file is left empty it doesn't really tell anybody anything about whether you are a good payer, and many lenders will assume the worst.

Worth noting that the opposite may be true, if you current account has been operated poorly you may have a lower chance than with another provider who won't be able to see all your "misdemeanours."

SeduLOUs

boo_star wrote: »

Worth noting that the opposite may be true, if you current account has been operated poorly you may have a lower chance than with another provider who won't be able to see all your "misdemeanours."

Pretty sure that's what I said?

boo_star

SeduLOUs wrote: »

Pretty sure that's what I said?

You're right, my apologies.

Edit: To add (and I didn't add it to my previous post), what you think is poor and what the bank think is poor are usually two different things. Having a few DDs bounce over the course of a few months is likely to be seen as "poor account conduct" by a bank. Having worked for a bank I had many customers who wanted an OD increase and when I pointed out their poor account conduct said "I paid the fine so why does it matter." Paying charges doesn't absolve you in the banks eyes.