Good Credit report/Score but cant get credit?

chris_Barron

Hi Everyone,

I hope you can help as I am really lost! I have applied for interest free credit twice in the last 6 months and on both occasions I was declined and the provider just sent me the generic letter saying that I should check with credit reference agencies.

I have checked my Call credit (Nodle) and Equifax (clearscore) credit reports and scores and couldn't see any issues and my scores looked pretty helathy, all accounts are paid on time every month and my credit card/store card utilization is pretty low. I have 1 loan which is 4 and a half years old for the wifes car which finished in 6 months and I have never missed a payment on and I have a Mortgage with RBS which I had to make 1 arrangement to pay in early 2013 due to my employers payroll system failing and me having to wait for my monthly salary this does show as an arrangement to pay and not a missed payment and I paid the overdue payment the minute I got paid which was on the day agreed with the lender!

I thought that maybe Experian held different information about me but I have just paid to check this report and score and it's identical with a score of 967 out of 999?????

I always pay more than the minimum of store cards and credit cards and everything is paid by direct debit. I have no financial associated CCJ's etc....

So why oh why have I been declined for a £600 bike and £1800 for new doors for my home? I have since paid cash but it would have been nice to take advantage of the interest free deal! I have looked online but other than advice to check you reports which I have done there doesnt seem to be any advice for someone with my predicament! I'm looking to move home soon so I am worried now that I will not be able to get a new Mortgage!

Thanks

Chris

[Deleted User]

Ignore your scores.

Likely issues are -

Your AP on the mortgage
Carrying balances on store and credit cards
Current loan
Total available limits
plus potentially your income being too low for further credit

It would be worth engaging a broker before applying for a mortgage.

GingerBob_3

chris_Barron wrote: »

Hi Everyone,

I hope you can help as I am really lost! I have applied for interest free credit twice in the last 6 months and on both occasions I was declined and the provider just sent me the generic letter saying that I should check with credit reference agencies.

I have checked my Call credit (Nodle) and Equifax (clearscore) credit reports and scores and couldn't see any issues and my scores looked pretty helathy, all accounts are paid on time every month and my credit card/store card utilization is pretty low. I have 1 loan which is 4 and a half years old for the wifes car which finished in 6 months and I have never missed a payment on and I have a Mortgage with RBS which I had to make 1 arrangement to pay in early 2013 due to my employers payroll system failing and me having to wait for my monthly salary this does show as an arrangement to pay and not a missed payment and I paid the overdue payment the minute I got paid which was on the day agreed with the lender!

I thought that maybe Experian held different information about me but I have just paid to check this report and score and it's identical with a score of 967 out of 999?????

I always pay more than the minimum of store cards and credit cards and everything is paid by direct debit. I have no financial associated CCJ's etc....

So why oh why have I been declined for a £600 bike and £1800 for new doors for my home? I have since paid cash but it would have been nice to take advantage of the interest free deal! I have looked online but other than advice to check you reports which I have done there doesnt seem to be any advice for someone with my predicament! I'm looking to move home soon so I am worried now that I will not be able to get a new Mortgage!

Thanks

Chris

This could be a factor, and of course points yet again to the dysfunctional credit reporting regime prevalent in the UK. What are the words .... "not fit for purpose" .... yes that about sums up credit reporting.

takman

Your arrangement to pay could be a big warning sign to any potential lenders. Not being able to pay due to a payroll issues shows that you have zero money set aside for emergencies or important bills.

I hope you now have savings which are more than a few months income in total. If not you should start saving right away or you could easily get into financial difficulties!.

marliepanda

As above, not being able to pay your mortgage because of a delay in payroll means you have nothing to fall back on, which shows lenders you are living beyond your means.

Add to that car finance, which could indicate living beyond your means (not always, but it can) You also say you pay 'more than the minimum' on store cardS and credit cardS. How much debt/credit are you actually using? Clearing the balance each month is what you need to do, not paying more than the minimum.

Plus you are asking to finance quite small items which could be saved up for, particularly the bike. Can you not save up £2k+ for these things?

If you can't pay your mortgage because of a payroll issue, what happens if you lose your job? Mortgage is going to come first before bike and new door costs. Add that to your other credit (car finance, store cards and credit cards) you may not be as 'healthy' as you think.