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584 credit score...Why?

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I have been declined from opening a current account with Santander. However, Lloyds accepted me...

So I decided to check my credit score for the first time ever - it is 584 (which is poor). I used noddle free report. I'm really confused about this...

I only have one bank account - a halifax student account.

However, I have been living in the 1,000 PLANNED student overdraft for 2 years now. The account has been at -£900 for months now.

Could this be the reason for my low credit even though the overdraft is planned and not charged?

I have not had any loans, credit cards or mortgages before.

In order to improve my rating, I have paid back the £1,000 student overdraft, so my account now says NILL.

I will close the student account, and have just opened a Lloyds classic account. I will deposit £5000 savings into this.

By September 2016, should be credit score have improved considerably?

I don't get what else is affecting my score?

Thanks
«1

Comments

  • molerat
    molerat Posts: 34,595 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Your score is meaningless, what is in the details on your credit report to cause the rejection ?
  • FrankR
    FrankR Posts: 140 Forumite
    Fifth Anniversary 10 Posts Combo Breaker
    They cannot give me an account due to information held by Experian credit reference agencies.

    That is the reason I get when banks decline.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    If you have no credit lines other than your overdraft, then you'll be viewed as high risk.

    But as above, ignore the score. It's got nothing to do with anything.
  • FrankR
    FrankR Posts: 140 Forumite
    Fifth Anniversary 10 Posts Combo Breaker
    So if the score does not matter, why are the banks not allowing me open a bank account?

    Do you know if using my student overdraft, which is a planned and uncharged overdraft of £1,000, affects my credit over time? It's with Halifax. I can't find any info about it online.
  • The score is meaningless as each bank will have their own method of assessing your credit file.

    If your only form of credit is an overdraft which you have been in for ages without crediting the account it's not going to look good to a new bank.

    If you run an account with regular deposits and withdrawals your profile will get better over time.
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • FrankR wrote: »
    They cannot give me an account due to information held by Experian credit reference agencies.

    That is the reason I get when banks decline.

    Have you checked your Experian report? You say you checked Noddle, but what about the other two? They've said it's something on Experian.

    Are you on the electoral roll?
    LBM July 2006. Debt free 01 Sept 12 .. :T
    Finally joined Slimming World: weight loss 33lbs...target achieved 51wks later 06.05.13 & still there :j
    Aim to be mortgage free in 2022. Jan 17 33250 Nov 17 27066 Mar 18 24498 Sep 18 20608 Nov 18 19250 Jan 19 17980 Mar 19 16455 May 19 15024 Nov 19 10488 Feb 20 8150 May 20 5783 Aug 20. 3305 Nov 20 859 Mortgage free, 02.12.2020
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    FrankR wrote: »
    So if the score does not matter, why are the banks not allowing me open a bank account?

    Because they don't like whatever information they are seeing - or not seeing - on your credit file.
  • FrankR
    FrankR Posts: 140 Forumite
    Fifth Anniversary 10 Posts Combo Breaker
    I've just been accepted for a capital one classic card - it's a credit builder card I've linked to my Lloyds classic account. This is my FIRST ever credit card. I did a search on this site using my information, and it recommended me this card with a 70% approval chance. It's 0% for first three months, then goes ut to 34.5% APR. This won't affect me though because I'll be doing more saving rather than spending until september 2016.

    I'll close my student account.

    By september 2016, if I pay back my credit card every month in FULL, my credit rating should surely improve as I'll be depositing £600 into the account every month, and spending very little on the credit card - for snacks and travel costs

    I am living with my parents at the moment, so I have got the time to improve my credit score so that I can apply for a student bank account in September 2016.

    I'll also pay £2 to experian so that they can send me my full credit report.

    Is this a good plan?
  • Experian have changed their marking profiles. I understand that the score is effectively meaningless but they have changed it so will look terrible if you have seen a big drop.

    But its how u manage your accounts etc.
    I love green dots :T I hate red dots :mad:
  • All sounds good apart from still trying to improve your score.

    That's like trying to change the colour of a unicorn.
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