Poor credit rating, no defaults/missed payments

Newdirections

Hi

So I know there is no such thing as a credit rating per se. I know that I am unable to obtain credit (and this has been the case for a while). I was also only offered pre-pay gas/electric meters when I moved into my new place (thankfully my husband could get us a decent deal on that). I'm even rejected for certain bad credit finance products so I know the situation is bad.

However, I have never missed a payment, never had a default, etc.

I am probably currently getting rejected for credit because my borrowing level is too high I guess (sizeable personal loans and a few credit cards) but should this really have such a direct impact on obtaining gas/electric contracts?

I've checked my credit reports and there is no evidence of default, missed payment, payment plans etc. The only problem is that I have a lot of searches against my name.

How long would I have to wait for these searches to stop impacting my credit report so much? Particulary with regards to energy suppliers? Thank you !

Dobbibill

There's alot of information taken into consideration when applying for credit.

You need to take all the emotion out of applying for credit, think about what it looks like on paper to a stranger.

What does your income vs available credit look like?
What does available credit vs utilised credit look like?
Are you on the ER?
How many searches have you had?
How many full applications?
Could this make you look desperate?

Although you have looked through your CR for things that are wrong, you also need to look for what's right. Has your address been updated correctly? Is it in the right format [this has been known to cause problems with flats/apartments etc]

Searches have less impact the further in the past they are. Generally 6 to 12 months is an approx timescale for them to have the lesser impact.

If you have alot of utilised credit close some of it down when it's paid off.

I don't expect you to post answers to the questions above but have provided them for food for thought.

National_Debtline

Hi there,

Searches should come off your file after 12months. If you have a lot of new searches but no new credit then that suggests to lenders that you have been refused credit for one reason of another from more than one lender. Although they may not be able to see the problem themselves, they may think another lender has seen a problem and refuse you credit on that basis. You then apply somewhere else and the problem snowballs with the more searches you have. I would suggest that you wait for these searches to come off your file and then perhaps try again.


You mentioned that you have sizeable debts, are you able to overpay these to try and drive them down? This may help. As you know, lenders are looking at your overall credit worthiness as opposed to a score and perhaps it may help if you paid off some of your debt and essentially 'free up' potential credit. It may help to improve your score but more importantly it should help to take some of the pressure off yourselves. I hope that helps,


Laura
@natdebtline