Credit Scoring

[Gemma1984]

I brought my car on finance on a high apr and im now wanting to get a loan from one of the high street banks with a lower apr to pay it off. I got the car finance no problem and i had only been ion my job for 2 months! Now i have just applied for a loan online and they are saying that my credit score isnt high enough. Could this be because i have moved in to with my boyfriend in his mums house ( she doesnt keep up payments on her bills ) could this be why ive been turned down?

[undercovers]

have you an overdraft, or credit card and have you kept a debit on one for a long time e.g. pay the interest but keep the original debt. It is things like this that will increase your credit scoring - remember they are not look for someone who is good with their financies and doesn't get into debt they are looking for someone who is always in debt but very slowly pays it back (with the interest). You will have got the car finance so easily because it is a con e.g. you are paying a very high apr, so they win if you don't make a payment they take the car (even if you have really paid it off) and sell it so they win!

[OBonio]

Houses can be blacklisted on credit ratings lists. Even if you move in and the previous occupant has moved out. If there's a history of defaulting at a particular address, it affects everyone in the house.

[Gemma1984]

i do have an overdraft but rarely use it i have a credit card which i was going to pay off with the remainder of the loan that i now cant get!

im pretty sure that house is blacklisted the mother in law hasnt paid her council tax for a good while and has various other debts that have gone over to debt collection agencies im annoyed that im being affected by her actions!

[jake-the-peg]

You may not be being affected by her, you're going from a loan that is backed by the collateral of the car to asking for a loan that has no security. As you're not a home owner they may just be looking at you and asking themselves what would stop you from vanishing off the face of the earth with their money.

[jake-the-peg]

Oh I think there are a number of questions on getting a better credit rating in the Money and finance section - with many better answers

[gordy_b]

Firstly there is NO SUCH THING as a credit blacklist - the existence of one is a myth.

Credit scoring takes into account a number of different factors, how long you have lived at your current address and number of recent searches are two of them.  The fact that you have moved house recently will have affected your score, but as such searches are on individuals you are virtually guaranteed of the fact that nobody else will affect you unless you are financially linked i.e. spouse/partner.  Also not a lot of people know that the more times your history is searched by finance companies or banks can adversely affect your score so watch out for how many searches are performed in a 3-6mth period.

From what you have said I think your time at current and previous address will be all that is affecting you.  Furthermore it is likely that you do not appear on the voters' roll - get in touch with your local electoral office to resolve this.  For further information visit www.experian.co.uk or www.equifax.co.uk.  These are the two main credit reference agencies who will be able to provide you with your credit report for a nominal fee.  This I would STRONGLY recommend as there may be information on your files that shouldn't be there/you didn't know about which can be easily rectified.

Good luck.

[Personica]

If you request details from Experian or equifax etc. do so by mail and NOT through the internet, it's cheaper that way (about �2, I think). Also, try switching your credit card debt to another card which offers an interest free period. You may have to go with the likes of Capital One as they are less fussy. Remember though, Every time you apply (and are turned down) for credit, it is recorded on your credit score.

[gordy_b]

Personica's answer is fair enough with regard to interest free periods on credit cards, just be careful as to how much you would be charged after the initial period.

I should have mentioned not to apply for credit files through the internet - ask the company who declined your application which of the credit reference agencies were used and ask them to provide you with an enquiry form.

Correct that the number of applications can lower your credit score, however the result of such applications (accept/decline) is not recorded as this is confidential information.