Been declined credit since moving home

Brandylover88

Hi all,
6 months ago I bought a house and moved in Oct 20. I was able to obtain credit straight after such as sofa credit a new bank ac and also continued using Klarna. However, lately I can't obtain new credit. Klarna has been declining me and I couldn't get a new phone contract. 
Do you think this is because I have recently moved or now having a mortgage? I would have thought having a mortgage would improve my credit rating.
appreciate any responses.
B

NewLeaf1986

What do your credit files say?

Credit scoring is a highly nuanced process which involves looking at factors like:

Stability

Opening multiple accounts in a short timeframe is considered negative. Lenders prefer to see accounts with a lot of history behind them before considering they should lend more

Debt to income ratio

How much do you owe as a percentage of your annual income? (Excl. Mortgage). Owing more than about half of what you earn in a year can be seen as "sufficiently committed already"

Debt to limits ratio

How much do you owe as a percentage of your limits? Owing more than about half of what your limits total can be seen as a sign of debt stress and reduce your ability to obtain further credit 

Electoral register

The voters roll is used as a means to verify your ID electronically. Make sure you're registered to vote at your new address and that your ER data appears correctly on your credit files

CIFAS data

Fraud markers usually don't appear under the "CIFAS" section of your credit file, you need to file a separate request for this data directly from CIFAS.

If a lender believes you've used an account or facility for illegitimate purposes, or if they believe you've provided inaccurate information on an application form, they may leave a CIFAS marker against you which can result in other organisations not entertaining any applications for accounts or services made in your name. 

Ebe_Scrooge

On the face of it there are two obvious possibilities.  The first one being that it's likely your new address has only recently been updated on the CRA records  Lenders like to see stability, so a change of address is a - very small - negative influence.  Probably the larger impact is a new mortgage, especially if it's your first ever mortgage, or significantly more than your previous one.

Neither of these things are anything to worry about - give it a few months and things will settle down.  It's worth checking all 3 of your credit files just to make sure there's nothing amiss (this can be done for free, no need to pay anything at all), but I strongly suspect it's nothing more sinister than your recent change in circumstances.

Thrugelmir

Not just the mortgage but the additional new credit commitments you are entering into. All in a short space of time. Have you any existing debts or financial outgoings on top of these?  

femalemonarchfemalecanine

Brandylover88 said:

Hi all,
6 months ago I bought a house and moved in Oct 20. I was able to obtain credit straight after such as sofa credit a new bank ac and also continued using Klarna. However, lately I can't obtain new credit. Klarna has been declining me and I couldn't get a new phone contract. 
Do you think this is because I have recently moved or now having a mortgage? I would have thought having a mortgage would improve my credit rating.
appreciate any responses.
B

Are you on the electoral roll at your new address? The only time I ever got turned down for credit was just after I moved house - seems to make lenders nervous for some reason?

Sncjw

Do you reallt need an expensive phone.. Could you buy a phone outright and use sim only deal. 

phillw

Brandylover88 said:

I was able to obtain credit straight after such as sofa credit a new bank ac and also continued using Klarna. However, lately I can't obtain new credit. Klarna has been declining me and I couldn't get a new phone contract.

It's normal for people to buy furniture after buying a house, so they have to accept the risk or they'd lose most of their customers.
But everyone else wants to sit back and wait to see if you crumble with the new payments.

DCFC79

phillw said:

Brandylover88 said:

I was able to obtain credit straight after such as sofa credit a new bank ac and also continued using Klarna. However, lately I can't obtain new credit. Klarna has been declining me and I couldn't get a new phone contract.

It's normal for people to buy furniture after buying a house, so they have to accept the risk or they'd lose most of their customers.
But everyone else wants to sit back and wait to see if you crumble with the new payments.

No need to buy new, buy second hand from various websites.

phillw

DCFC79 said:
No need to buy new, buy second hand from various websites.

A lot of people wouldn't buy a second hand sofa & if they started, then there wouldn't be enough decent second hand sofas around anyway.

DCFC79

phillw said:

DCFC79 said:
No need to buy new, buy second hand from various websites.

A lot of people wouldn't buy a second hand sofa & if they started, then there wouldn't be enough decent second hand sofas around anyway.

Yes I do agree.

NewLeaf1986

phillw said:

DCFC79 said:
No need to buy new, buy second hand from various websites.

A lot of people wouldn't buy a second hand sofa & if they started, then there wouldn't be enough decent second hand sofas around anyway.

Completely off topic but the best sofa I ever owned cost me £35 off Gumtree.

It was a blindingly good deal, lovely big leather recliner and mahoosive three (generous) seater leather sofa... Yes, I cleaned it thoroughly and then cleaned it thogoughly again and boy was that thing snug.

I honestly got a better night sleep on that than my bed but I had to let it go when it wouldn't fit through the front door of the last house I lived in.

Other half and I bought a brand new DFS sofa instead and honestly it's crap. All the cushions / seat sqabs have needed re-foaming pretty much since it was a few months old. DFS just say it's the nature of the default filling and that's why they always recommend an upgrade at purchase.

*Shrug*. First world problems. Shouldn't get too comfy sat in front of the telly anyway