Refused credit

[meglet]

I've been looking to get credit from an electrical retailer to buy a flash new telly. I just want to buy half now and half in 6 months in order to take advantage of the interest free option offered. I've now tried online and gone into Comet and been refused both times. After I'd been refused online I got my credit report through Equifax. I've had tons of credit before, have paid off many loans and credit without defaulting and my rating through Equifax was rated as very good. So I checked with the first finance company and they could only tell me it might be because I have only been in my job for 3 months when they preferred 6 months, so when I walked into Comet I told them 6 months as a precaution and was still refused. So my questions are a) Are credit reference checks recorded on file and could this be why I was refused subsequently as I had been refused before? b) What other reasons may have gone against my application? I've just been granted a 0% credit card through the Post Office last week so that went through ok. I can't see how all the companies could see my liabilities and make a judgement about that as they don't see what I've got on my cards. I bought the telly anyway and paid cash in the end.

[Ethel]

Lying about your job history to get credit is not a good idea. And I really don't know why the loan companies don't know about your credit card history - they do.

I think the clue is in the last sentence - you have just received another credit card.

The loan company will know exactly how many loans you have had (current and fully paid) and more importantly how many credit cards.

You could truthfully say you have no debt (if that is the case) but if you have thousands of pounds worth of available debt on credit cards, loan companies get anxious - you could go on a spending spree and not be able to afford to pay your loan.
If you have recently made several applications for credit cards and loans that will also go against you.

[meglet]

Thank you Ethel, I was hoping you would answer. What I meant was, the credit reference check would not show up what I actually owed on credit cards so surely they cannot determine 1) my liabilities and 2) how much credit was available to me to go on a spending spree as they wouldn't know what my credit limit was?

Anyway, not matter now but it all seems a bit strange to me. You hear endlessly that credit is being offered to people that can't afford it and yet those who can (I do earn a very good salary) and are rated as a "very good" risk are refused.

[Sammy Snake]

A credit search will show the outstanding balance on your credit cards.

[kempie]

"You hear endlessly that credit is being offered to people that can't afford it..."

That was certainly true over the last 15 years or so but surely you are aware of the so called "credit crunch" initiated by the failed US sub-prime mortgage market.

The last 6 months have seen jittery lenders become far tougher on granting applications for loans. Previously underwriters looked at the value of a debt and thought, 'This one is small enough that we can ignore it'; now they are looking for reasons to refuse people, so that they are left with safer and safer customers.

[Oneeyedvic]

As Sammy Snake says, not only will credit card companies know your average balance, it will also show your credit limit.

Credit is changeable according to the lender.

One week a few years ago, I applied for two credit cards. On the first one, I was given a �400 limit, on the other a �6000 limit!