Struggle to obtain credit

Christmaslover93

This is going to be a little long so I apologise. I’m looking for advise on why I’m struggling to obtain credit. When I turned 18 I got a catalogue and an overdraft. The catalogue was paid on time and closed after 9 months, the overdraft got out of control and was subsequently paid off after 4 years. I’ve never been able to get a phone contract or credit card and In 2020 I received a CCJ due to an unpaid water bill from an address 4 years previous. I managed to pay off 50% of it but still have an outstanding balance. I have 1 defaulted account. I am on the electoral register and have bills in my name which are paid on time. Since I defaulted on an account I’ve been unable to get even a basic bank account until 2 months ago (I had to use a building society account) but I still struggle to get any type of credit. I’m not desperate for a credit card or a catalogue or loan but with a score of 480 which obviously isn’t brilliant but it’s been worse I’m curious as to why I essentially can’t get anything and struggle for a basic bank account. I know a CCJ doesn’t help and it will get sorted but this has been happening since I was 19, sometimes it feels like I’ve disappeared off the earth and can’t be traced. Has anybody else ever had this problem?

[Deleted User]

The unpaid CCJ and default are the problem.  Your credit score is irrelevant as lenders are only looking at how you managed your accounts.  If you can't settle old debt, lenders won't expect you to want to settle any new ones.

Get the debts settled, give it some time and then try a sub prime provider for a credit card, but only if you're sure you know how to use it.  You need to build solid, unexciting credit history from now on. 

Jamesyb123

If you’re struggling to get even a basic bank account then also check CIFAS as usually basic bank accounts are available to everyone you’re credit history doesn’t usually matter. Only a CIFAS marker could be preventing you getting a basic account 

DCFC79

How did you end up with an unpaid water bill, use direct debits and never cancel the direct debits.

Mrs_Ryan

DCFC79 said:

How did you end up with an unpaid water bill, use direct debits and never cancel the direct debits.

OP said they struggled to get a bank account. It might be that the type of account they were forced to use might be a basic savings type account which doesn’t accept direct debits. If this was the case they might have had an issue setting up a direct debit.....

Christmaslover93

Hi everyone and thanks for your comments. 

I had to rely on a building society account for quite a while which doesn’t support direct debits or come with a debit card. I was able to get cheques from the account but they used to take 2-3 weeks to reach the companies which by that point there would be late charges (not water but other companies for example) then a new bill was due. It just ended up spiralling. 

I appreciate everyone’s comments. I had a feeling the CCJ was going to be the main problem but I assumed even a basic bank account would have been easier to get. 

I’m currently paying the CCJ and I’ve recently cleared a defaulted account. Hopefully it will all improve once it’s all paid off.