Low Credit Score?

[Lakeslad]

I have lived in the UK now for 3 years. I come from South Africa and have British Cizitinship. I recently tried to apply for credit and was refused. When I contacted Experian for my credit report and score it showed no defaults on payments or anything negitive, everythin was green (It shows in Green, yellow or red circles) but the score appeared "Poor"

When in South Africa I had a Credit Card which I continued to pay from here in the UK. My last payment of �200.00 (R2000.00) was lost during the international transfer. Both my bank here and the bank in SA would not take responsibiliy even tough I hade the letter from the my UK bank confirmng the amount had been taken from my account and sent to South Africa.
To cut a long story short it took just over 4 months to trace the payment which was eventually found in what they in South Africa call a "Suspended Account" what ever that means, and settled the card. My card was not paid for 4 months resulting in defaults.

Experian said they could not tell me why my score was low. To get my score up again they said I would have to open accounts and prove I can pay every month. But how can I do that If I applied for credit but was refused. Its like im stuck in a horrible circle?

My question: Could the defaults in South Africa (Which were not my fault) affect my credit score here in the UK?

[Loosehead]

I'd be suprised if a foriegn credit record would show up here. It sounds like it's a case of not having enough credit history. The trouble is there is nothing to go on. You need to get a credit history. Maybe you could buy something from a store on interest free credit. Pay it religiously and then you'll have something in your record. There may also be some credit cards that will take you on with a low limit, again use regularly and pay each month.

[Lakeslad]

That is what I was told to do by experian. but what worries me is if I was refused once would I not be refused again? I was told by a friend not to keep applying because if I do keep getting refused it will make my score worse?

Could it then just be becuase I havent been in the country long enough?

[Loosehead]

Yes it's because you have no history. Have you a current account at the moment ? Apply to your bank for their credit card, explain to them that you are trying to start a credit history. They will probably give you one with a low limit. Then use it each month and pay it each month.. It will get easier!

Also you migth try buying something from a store on some sort of interest free deal. They will be less strict also.
Good luck

[Hammer]

Try your own bank. They can see from your account history that you have a regular income, don't go overdrawn, etc (assuming of course that you do / don't). Ask them for a credit card and pay it off religiously for a year or so. That will prove to other lenders that you are OK and help get you a credit history.

[Oneeyedvic]

Have you lived in the same place for the last 3 years, or have you moved around a lot.

Also, are you on Voter's role - if the lender can't find you, they won't lend you money.

Your South African card will have nothing to do with the reports seen in this country and hence will not effect your score

[Lakeslad]

I have moved twice in 3 years. I am on the electoral role but just over 1 year. When I checkedmy experian report all my address are listed on the report,

It is a releif to know its not my card in SA.

[Oneeyedvic]

I suspect it will be Voter's role giving you a bad scrore then. They essentially have no proof that you have lived anywhere else (and being pessimists) they will think that you have lived elsewhere and run up debts there.

Make sure you stay on voters role and if you move go straight on again. Other than that, follow the advice above.

Also, applying for credit does not effect your credit like it used to - try the more adverse lenders like capital one or store cards. If you can't get one from them, try waiting 6 months then reapplying.

 

Credit card companies are a law unto themselves. Barclaycard 6 months ago only offered me a �600 limit on a credit card. I sent it back saying don't bother. I then get preapproved 4 months later for a monumnet card (owned by Barclaycard) with a �3500 limit) - weird people!!!!