Problem obtaining credit

robc281274

Hello. I have never had an issue with obtaining credit but was recently turned down for a credit card (it was just an eligibility checker as opposed to a full check I believe) and also a mobile phone. Which of the below is likely to be causing me an issue? Or will it be a combination?

• Moving house twice with a 12 month period
• Not being in the electoral register at my current address (I am but the credit agencies do not seem to have caught up yet)
• A credit card balance which is near its £5k limit and which for a while I've only been making the minimum payment
• Moving jobs recently

[Deleted User]

All of those will have an impact, particularly only making minimum payments on a maxed card if not on a promo rate.

Ebe_Scrooge

As above - all will have an impact, but making only minimum payments on a credit card for more than a couple of months (unless on a promo) will be a big red flag for any lender.  If you look at it objectively, it's clearly demonstrating that you're struggling with your current debt, so it's no surprise that further credit is hard to come by.

It's worth checking all 3 of your credit files, just to make sure there's nothing untoward on them - but I strongly suspect the minimum credit card payments are your biggest problem.

MalMonroe

Yes, I agree with the others here. Numbers 2 and 3 particularly bad. Lenders don't like you to be using more than 50% of your available credit and also the minimum payments will make them wonder why that is.

robc281274

Thanks all

mcpitman

robc281274 said:

Thanks all

Morning, nothing more to add to the great advice above apart from a small hint.

If your minimum payment = £200, pay £201, the extra £1 means you made more than the minimum payment and you won't show as a "minimum payment person" on your credit file.

Thrugelmir

mcpitman said:

robc281274 said:

Thanks all

If your minimum payment = £200, pay £201, the extra £1 means you made more than the minimum payment and you won't show as a "minimum payment person" on your credit file.

Lenders analyse the underlying data. An odd £1 is neither here nor there. When the debt owed is hardly changing. 

mcpitman

Thrugelmir said:

mcpitman said:

robc281274 said:

Thanks all

If your minimum payment = £200, pay £201, the extra £1 means you made more than the minimum payment and you won't show as a "minimum payment person" on your credit file.

Lenders analyse the underlying data. An odd £1 is neither here nor there. When the debt owed is hardly changing. 

Lenders do analyse the underlying data, they also analyse if a customer is making minimum payments to an account, the £1 extra removes the minimum payment marker from the credit file.

martinbainbridge1975

Seemingly a lot of lenders appear to be tightening up their criteria in the current climate, this was the impression I got from Natwest when I applied for a card and was declined

[Deleted User]

martinbainbridge1975 said:

Seemingly a lot of lenders appear to be tightening up their criteria in the current climate, this was the impression I got from Natwest when I applied for a card and was declined

They have been for years particularly in light of the responsible lending rules. That said individual anecdotes have no relevance to overall trends, I took out a M&S BT card just recently and Barclays have upped my limit on my main BT card again this month, doesn't prove lenders are getting more generous.

martinbainbridge1975

Deleted_User said:

martinbainbridge1975 said:

Seemingly a lot of lenders appear to be tightening up their criteria in the current climate, this was the impression I got from Natwest when I applied for a card and was declined

They have been for years particularly in light of the responsible lending rules. That said individual anecdotes have no relevance to overall trends, I took out a M&S BT card just recently and Barclays have upped my limit on my main BT card again this month, doesn't prove lenders are getting more generous.

Responsible lending - now there is a topic!  I did some PPI complaint work for a high street bank boy was that interesting in terms of the lack of responsible lending over the years

a shop worker on 10k a year with a 15k credit card limit - disaster in waiting 

M&S have never liked me for some reason for credit cards