No Credit / Bad Credit - Same Thing?

Credit_Struggle

Hi MSE users,

I’m wondering pretty much what the title implies, is having no credit just as restrictive as having bad credit?

I have been building my profile since August last year and maybe I am doing well, but man it feels like a struggle.

I recently applied for a Amex Card and turned down letter just tells me to check my non existent credit score with Experian (thanks Amex!).

I have recently moved 2 months ago which probably doesn’t help (why does moving seem to affect credit applications?). However was on ER at previous address and already on ER at new address.

I live in a good area (rented). I have a pretty decent salary and my current credit is nowhere near my salary.

I think maybe I’m a little to application happy but that’s just me wanting a mainstream card so I can ditch the others.

Currently have;

Aqua £1400, Cap 1 £1200, Vanquis £500, Amazon £500 (initially declined but appealed).
PayPal Credit £1000
Monzo Overdraft of £1000 & FD £500

All I really want is an BA Amex Card due to Avios , will I need years of history for this?

Thanks

BoGoF

Lenders look for stabiliity in addresses as it shows just that... .stability. So the recent change of address won't help. What is a 'decent' salary?

Application happy = how many applications in the last 6 months and to whom? Is Amex thr only mainstream you have tried?

Credit_Struggle

£75,000 PA. Amex is the only mainstream that I have tried. But Eligibility checkers give me a really small chance with others.

Willing2Learn

Hi Credit Struggle and welcome to the forum

Are you using your two overdrafts?. If you are doing so, then I suggest you do not, as it might appear to lenders that you are living beyond your means and/or you are poor at budgeting.

Also, are you making regular use of your four credit cards because you should be? If you are doing so, are you paying the statemented balances in full each month (before the due date)?

I don't know how PayPal credit works, so am unable to comment on that

BoGoF

Are your balances paid in full every month. If not then earning £75k and carrying balances on alsub prime cards is not a good look.

Credit_Struggle

Thanks for you’re replies and welcome.

I Have a small balance on each every month and paid in full.

Overdraft I never go near them.

I guess just reapply to Amex every 3 months

System

If you pay off the balance in full every month it doesn't matter what credit card you have and the only reason to change would be for vanity.

Credit_Struggle

BoGoF - Last 6 months I have had probably around 9 credit searches.

After my Amex decline recently I applied Cap One and consolidated the credit limits.

Also applied for Tesco credit card and offered a ridiculous limit of £250 so cancelled the application.

So three of the searches are within the last two weeks.

I did appeal to Amex but it was utterly useless.

Other credit searches before that were Mobile Phone and utilities and landline etc.

Credit_Struggle

Tarambor - I disagree , I have stated the reason for wanting Amex, to be earning Avios.

Also hardly vanity or I am quite sure otherwise everyone would stay sub prime.

boo_star

Credit_Struggle wrote: »

BoGoF - Last 6 months I have had probably around 9 credit searches.

After my Amex decline recently I applied Cap One and consolidated the credit limits.

Also applied for Tesco credit card and offered a ridiculous limit of £250 so cancelled the application.

So three of the searches are within the last two weeks.

I did appeal to Amex but it was utterly useless.

Other credit searches before that were Mobile Phone and utilities and landline etc.

Amex are (or were) quite a picky lender and having 9 search in 6 months is quite likely to get them a bit spooked.

It'd probably be best that you stop applying for credit for at least 6 months. I'd certainly not advise applying to Amex every 3 months.

BoGoF

Your search history now smacks of desperation to a prospective lender. You really need to wait 6 months at least before any credit application.