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Simply frustrated...

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Hi.

I don't even know where to start. I've been with the same bank, lived at the same address and been employed by the same company roughly for the same amount of time which is around 5 years and in that time I've had finance for a couple of things with no issue, some of which were paid off before the allotted time frame because I had earned the money to do so.

I borrowed a large sum of money last year and after a car deal went wrong I paid that back, obviously that came at a cost to me but this year I've been declined by the same People and my bank using my credit score as the reason. So I paid to get my credit file from Experian and used Clear Score which uses Equifax data so I could see what any issue was in order to be able to get it sorted.

My frustration is that both reports are essentially clear, I have no outstanding finance, no CCJs etc etc etc, I can more than comfortably afford to pay back what I want to borrow, I'm well in the black in regards to my bank balance so I just can't understand why someone like me is being refused credit.

The only negative on Clear Score is that I don't possess a credit card, which I don't want because I want to try and live within my means where possible, and now afraid to even apply for one if my credit score is affecting my ability to borrow money in the first place.

So what exactly am I supposed to do if being able to manage my money in the first place just isn't enough for lenders to lend me it?

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Firstly, ignore the credit score. Lenders don't see it.

    The best way of building a credit history is to use a credit card sensibly - use it each month and pay in full. It shows you're not scared of credit and can handle it.

    But if you're nervous of credit, then it may be best to stay away from it, although it will make things like mortgages very difficult to get.
  • TadleyBaggie
    TadleyBaggie Posts: 6,626 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    If you are not seen to be managing credit on a regular basis, lenders have no idea how you will if they lend to you. A credit card is often used as a yardstick.

    Using a credit card does not equate to living beyond your means, I use two credit cards for most of my regular monthly spending, I pay them off in full every month, so pay no interest.
  • Having once again been refused a loan from my bank (Co-Op) I've switched to First Direct today, well I've opened a 1st Account so now waiting for all the bumpf to come through before I can make a full switch but I'm afraid of applying for a credit card with them for no other reason than my credit file which shows I'm not afraid of credit and more than capable of managing it. I just don't get it.
  • Here's a killer, I took the plunge and signed up for my 30 day free trial with Experian only to discover my score is 967 out of 999, so is "excellent" but they show I'm not on the electoral roll although I am, my own search shows I am as does Equifax so how can the "credit experts" not know this? Madness.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    Wow, 967! That's impressive, you should ask Experian for a credit card.
  • Someone at Experian is getting my wrath in the morning as they claim I'm not on the electoral roll but then acknowledge I am and all their credit matches give me the low apr rates generally advertised which include two lenders that have refused to give me credit in the last few weeks.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    Boo hoo. Lenders use their own methods of credit scoring you so Experian are really just guessing as to whether or not you'll be accepted by the lenders.

    Someone will be getting your wrath this morning? How would you feel if someone starting directing their wrath at you whilst you were at work for something you had nothing to do with. Whatever has happened with your credit file is not the call centre worker's fault and as someone who has worked in a call centre before, wrath usually ended with me disconnecting the call because I wasn't paid enough to take that crap at work. The best thing you can do is cancel your subscription to Experian today because it's a waste of money.
  • burlington6
    burlington6 Posts: 2,111 Forumite
    1,000 Posts Combo Breaker
    edited 6 February 2016 at 11:34AM
    Just posted this in the loan section but it applies here too

    I don't see the issue with loan companies not giving all the customers the low rates ( or even loans in this case)

    They don't advertise that all of them will get it and lets face it, most of them who apply will be a bad bet anyway.

    I have more of a problem with the public assuming a company, who is there to make a profit, should be forced to lend them money at a certain rate. ( or even at all)

    And will people please stop with the ''credit score'' nonsense
  • DCFC79
    DCFC79 Posts: 40,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Just posted this in the loan section but it applies here too

    I don't see the issue with loan companies not giving all the customers the low rates ( or even loans in this case)

    They don't advertise that all of them will get it and lets face it, most of them who apply will be a bad bet anyway.

    I have more of a problem with the public assuming a company, who is there to make a profit, should be forced to lend them money at a certain rate. ( or even at all)

    And will people please stop with the ''credit score'' nonsense

    They will stop the credit score nonsense when the lenders stop giving "oh its your credit score that's the problem" as a reason for declining a loan or increasing the rate.
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