Credit Score? Help

[FrankstaH]

Hi everyone,

A bit of a touchy subject i know, so obviously i'm not expecting everyone to comment.

Baiscally i'm 22 years of age.

I just conducted a credit check on myself and i'm scoring 839 which is above average for UK residents.

I have 8 outstanding accounts which are all 100% satisfactory.

My parents told me that to build up my credit score i need to make sure that i always get little loans/credit agreements and pay them back as per the agreement.

Therefore i purchased my private number plate on finance (paid that all back), i have my car on finance (never missed a payment) and also i recently applied for a credit card, in which i wll put £100 of petrol on a month, and pay it back straight away.

Also my account shows that since 2007 (when i got my first bank account) i have never been overdrawn, or had any late payments on anything.

I also have a mobile phone bill going back to 2008 with no defaults / missed payments as well as 2 previous settled loans (previous car finance which i settled up when purchasing a new car)... again i bought a computer on finance over 4 years which costs me £9 a month - this also i've never missed a payment.

All of the above leans me to think that i have a very good credit score for my age... however i recently saw a low interest loan with a bank that was a LOT less than what i'm paying my car finance off - so to make it simple, i wanted to take out a loan to pay off my car finance and save myself some money... however i was declined due to my credit rating?

I can not fathom why it would be declined when i have always worked soo hard to ensure my credit rating is good.

I am also now very concerned that when it is time ofr a mortgage i will be denied etc.

Also on my credit report i can see than since 2009 i have around 15 searches on my record, per year - by companies that i don't even know / haven't spoken to?

Do you guys think i should be worried?

*EDIT* = Do you think my age plays a part as to my lending capabilities?

Sorry for the long post - all comments welcome

[BigAlan]

I would contact the company that refused and ask why you were refused, there is 3 main credit search agencies, one of the things the company may have looked at, was how much you were asking to borrow, and whether the payments were going to stretch you financially from your income.
As for the companies that done a search on you, I would contact them to ask why these were carried out and also on your credit files, I would make a note that you never contacted these companies and you want these searches removed from the files, but you may have to prove that you did not apply for credit with these companies, which is why I said you need to write to the companies, good luck.

[RickHondaR]

I would not worry when I did a credit score / check around 4 years ago my score was 965 like yourself I have always paid on time and what I owe and never missed a payment on anything. when we went to get the CTR we wanted finance and to my shock one finance company would not do this even though we have savings in the bank a great credit score and are a 100% home owner (yes mortgage now paid off) and the only thing we owe money on is the car, again we have mobile contracts and a credit card that we use so it just does not make sense.

[Spank My Car]

You on the Electoral list? I think that is worth 100points on your credit score and is usually a reason to get declined credit (if not on it). I've also chop and changed residences quite a bit in the past 5 years...I've found lenders don't like that too much either.

I've also only recently got my first credit card too & i think they help boost your score and encourage lenders to borrow to you. I don't fully understand how it all works though!

[hagan71ctr]

Plus you have to look at the economy at the moment ? Where before lenders would just give loans out now with the recession they are a lot pickier with the people they want to give money too ? I like yourself have everything in order & only finance I have is my mortgage no other debt ? With the other company's searching your credit file this happened a lot when on comparison sites while looking for insurance & other deals a lot will search your credit file even if you don't go with that particular lender ? Pain in the ass I know ! So I wouldn't worry about it & like what has said you can contact them to see exactly why you have been turned down but like I said with this so called recession the good offers from banks they will pick & choose who they want to lend money too in this current climate so don't worry about it buddy


THE BEAST FROM THE NORTH EAST

[FrankstaH]

I have been on the electoral list for 6 years and i've been at the same address to for over 15 years so i don't think that would be a problem.

It is a little frustrating but i guess they are very fussy now.

I'm awaiting a credit card to start so i can improve my score further

[coste1l]

did they offer an alternative sister lender at a higher rate by any chance?

[FrankstaH]

Originally Posted by coste1l

did they offer an alternative sister lender at a higher rate by any chance?

no nothing at all mate :s?

[coste1l]

thought it might be a really low offer to get you to ring then you "fail" the credit score but their sister company take more risks and are "only" 5% more....

[steve1556]

I had the same problem, I'm 30, got money in the bank which I'm saving for a mortgage and wedding, although I have spent a reasonable amount recently trying to set up my own business, got 2 credit cards which are both paid off in full every month, phone on contract which is paid every month, my credit score is near 900, and the bank turned me down for a loan for a new car. Went to a few finance companies, they all accepted me for finance without any problems and my current car finance is about 2.7% more then what the bank loan would have been!

[FrankstaH]

Originally Posted by steve1556

I had the same problem, I'm 30, got money in the bank which I'm saving for a mortgage and wedding, although I have spent a reasonable amount recently trying to set up my own business, got 2 credit cards which are both paid off in full every month, phone on contract which is paid every month, my credit score is near 900, and the bank turned me down for a loan for a new car. Went to a few finance companies, they all accepted me for finance without any problems and my current car finance is about 2.7% more then what the bank loan would have been!

Yeah i think it's quote unfair how specific / fussy the bank seem to be on who they want to loan money out to. I feel quote frustrated that i could have saved myself nearly £1300 and also with the loan i could have had the option of selling my car very easily without having to worry about settling finance etc...

If you guys are also experiencing the same as me then i guess i shouldn't worry too much, i am quite young still which i'm sure will play a factor. However i've been working full time for 5 years now and have had regular income which as far as i'm concerned for the past 2 years is probably a lot more than the average for my age!

[Syx]

Had a similar thing when applying for a mortgage. I qualified for a special rate with HSBC, went through all their paperwork etc and then got turned down at the final credit check (which I think was just their excuse for not giving me the rate as they were pretty surprised I qualified and didn't seem too happy about it).
Then went to Natwest who matched the rate and were all fine... haven't checked my credit score since 2010 but back then it was very healthy so I think some lenders just use it as an excuse.

[steve1556]

Originally Posted by FrankstaH

Yeah i think it's quote unfair how specific / fussy the bank seem to be on who they want to loan money out to. I feel quote frustrated that i could have saved myself nearly £1300 and also with the loan i could have had the option of selling my car very easily without having to worry about settling finance etc...

If you guys are also experiencing the same as me then i guess i shouldn't worry too much, i am quite young still which i'm sure will play a factor. However i've been working full time for 5 years now and have had regular income which as far as i'm concerned for the past 2 years is probably a lot more than the average for my age!

I'm lucky in the fact it's not costing me too much extra per month. The main problem it caused was that I had to get the car from a dealer or trader, and not someone selling it privately so my choice was somewhat limited.

I wouldn't worry too much about your situation though, as you have plenty of time to sort it out. But I wouldn't get everything on finance as it can look like your trying to hard to get credit and over stretch yourself.

[BBigGG]

Credit card - paid off monthly = good credit rating.

Electoral register is also important.

Remember your credit score also takes in to account existing borrowings and offsets them against your income.

[FrankstaH]

Originally Posted by BBigGG

Credit card - paid off monthly = good credit rating.

Electoral register is also important.

Remember your credit score also takes in to account existing borrowings and offsets them against your income.

that;s odd because my car finance doesnt even show on my current lendings on credit check.

[steve1556]

Originally Posted by FrankstaH

that;s odd because my car finance doesnt even show on my current lendings on credit check.

Same with my misses credit history, her car finance isn't on there, but both my cars are showing on mine.

[FrankstaH]

Originally Posted by steve1556

Same with my misses credit history, her car finance isn't on there, but both my cars are showing on mine.

I've contacted the credit company today.

Ideally i would want it on there as once paid off, i'm sure a 5 year agreement would greatly improve my credit score.

[gjackson]

Credit Score is a reference point for lenders it has no material value, as all lenders have a different view etc. They will never divulge their full underwriting criteria and therefore can only be given as a gauge as to your credit worthiness not the likelyhood of getting a loan.

Beware with Credit Cards. If you have a massive limit but don't use it that will go against you as you have access to get into debt very easily/quickly without actually being in debt now.

Also paying off your Credit Card balance every month and never having a late payment is a poor business model for Credit Card companies, it's more profitable for them if you maintain a balance and to some even missing a the odd payment/ late payments is music to their ears.

[NJG80]

There is a number of things banks look at when looking at applications, these days since the bank crisis they have had to re look at the criteria of applications but they will always use the "Credit Rating" I work for a bank and have seen all different reasons for apps being declined but the same standard letter gets sent, shown on the net or advised over the phone. it really depends what you put on your app form as well,

did you say it was to buy a car or to consoldate ?

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