Repeatedly rejected for credit with high credit score

pth123

Hi - I wonder if anyone can help me. I’ve been rejected for credit by two companies (Apple and John Lewis) to get an iPhone on finance. The first one was a soft check so didn’t impact my credit score, so the second wasn’t to do with the first. 

My credit score is high with all three agencies (e.g. 999 with Experian, 867 on check my file), I am on the electoral roll, have had two addresses within the last three years, and am not a low earner and am absolutely flummoxed as to why I can’t get credit. 

I’ve asked check my file who couldn’t give me any insight as my score is very high and my addresses all match up correctly. I have no financial associates. I’m quite worried that there’s something going on that I don’t know about - has anyone come across this before and have any ideas as to why else someone could be rejected in these circumstances? I’m desperate to fix whatever is going on. Thanks! 

TadleyBaggie

Credit scores on Experian etc. are meaningless and made up. No one but yourself can see them. Each lender will do their own scoring based on your credit history.

Is it possible you have had very little credit in the past? That's usually the reason for rejections even if the made up number is high.

pth123

TadleyBaggie said:

Credit scores on Experian etc. are meaningless and made up. No one but yourself can see them. Each lender will do their own scoring based on your credit history.

Is it possible you have had very little credit in the past? That's usually the reason for rejections even if the made up number is high.

Thanks for your reply! I have a fairly long credit history so I don’t think that would be it - I’ve had credit cards for 12 years and have had a few loans that I’ve paid off. 

Mark_d

A good credit score means you can be trusted with credit.  But do you have enough disposable income to support an additional credit facility?  If you always pay your balance in full, then credit card companies don't make money out of you.  Worth bearing in mind

BoGoF

Mark_d said:

A good credit score means you can be trusted with credit.  

It really doesn't

BoGoF

Look at the detail in your credit report - do you lots of available credit sitting on credit cards for example.

What does your debt to income ratio look like?

CliveOfIndia

Mark_d said:

A good credit score means you can be trusted with credit.

Wrong, I'm afraid - the score is a meaningless marketing gimmick made up by the CRAs, and is not used - nor even seen - by any lender.

Mark_d said:

If you always pay your balance in full, then credit card companies don't make money out of you.

Wrong again, I'm afraid.  Whilst it's true that if you pay interest then a lender will make more money out of you, they make plenty if you always pay in full, from the fees they charge a retailer on every transaction you make.  And always paying in full reflects positively on your credit history, since it shows you're borrowing within your means and aren't struggling to repay what you owe.

Nasqueron

Mark_d said:

A good credit score means you can be trusted with credit.  But do you have enough disposable income to support an additional credit facility?  If you always pay your balance in full, then credit card companies don't make money out of you.  Worth bearing in mind

Credit card companies typically make 30-40% of their income (this was data for the US but I imagine it's the same here) from the processing fees, interchange rates etc. They certainly make the bulk of their income from fees and interest but a well managed card still gives them plenty of revenue.

Regardless, the credit card companies are not relevant here, the OP's credit history is all that matters and the finance companies have rejected the application based on that, not the fictional score

pth123

BoGoF said:

Look at the detail in your credit report - do you lots of available credit sitting on credit cards for example.

What does your debt to income ratio look like?

Thanks for your reply! I have a fair amount - I’m using about 10% of my current credit limit and my debt to income ratio is about 2%. I only have a small amount on my credit card currently. 

pth123

Mark_d said:

A good credit score means you can be trusted with credit.  But do you have enough disposable income to support an additional credit facility?  If you always pay your balance in full, then credit card companies don't make money out of you.  Worth bearing in mind

Thanks for replying! How would they assess this - is it my income vs debt? I’m not a low earner and I have a low amount on my credit card so they should be able to be confident with this, and this was a finance agreement, but not sure what other info they might want.  

Nasqueron

pth123 said:

Mark_d said:

A good credit score means you can be trusted with credit.  But do you have enough disposable income to support an additional credit facility?  If you always pay your balance in full, then credit card companies don't make money out of you.  Worth bearing in mind

Thanks for replying! How would they assess this - is it my income vs debt? I’m not a low earner and I have a low amount on my credit card so they should be able to be confident with this, and this was a finance agreement, but not sure what other info they might want.  

Ignore that post, what money credit card companies make out of you is irrelevant to future credit

When you apply you state your income and they look at it vs your existing debt and their internal risk profiles and make a decision based on that