To ask why I am constantly turned down for credit?

[whiskyowl]

OK, let me preface this by saying this is the very definition of a First World Problem. I have been really abjectly poor in my life (homeless) and I know how lucky I am to be able to type every word of this post. so please don't think I'm stealth boasting or anything like that. The problem I'm about to describe is, at best, an inconvenience and a bit of a social embarrassment. I fully realise that, compared to many families, we are super lucky.

I've just been turned down for credit for a kitchen in Ikea. This happened the last time DH and I applied for credit a few years ago, for a mobile phone contract. We had an almighty battle to get any company to take us on! It is inconvenient and a headache when this happens. It would be really useful to get this credit, because we're spending a lot on building work at the moment, and it means we'd have more readily available money for our contingency.

We are good with money and scared of debt. We have a good credit score on Experian - 999/999. We are lucky enough to be in a position to pay every bill on time, including all credit cards. We have never been late for a mortgage repayment. We have savings. (They are locked up for a bit, which is also why this 0% credit deal would be really useful). I have never had CCJs, or any bills that are outstanding (as far as I know).

Yet DH and I really struggle to get credit. We had to fight for days to get a mobile contract for him (which is why I know my Experian score - I had to send it to them as proof) and now this Ikea problem looks similar. It takes days and a big fight for us to get credit and it's super-embarrassing in store when it happens.

Please, oh wise Mumsnetters, why is this happening and what can I do in future to stop it? Is there something on my record I am unaware of, and if there is, how do I find and correct it?

TIA for advice!

[divadee]

Are you on the electoral roll at your property? How long have you lived there. That all helps with credit applications. Also apply to other agencies for your credit report. There may be something lurking in one of them.

[moutonfou]

Do you have a complicated address? I have a good score and was turned down for a loan, it turned out that because my address is a bit complicated (I live in a flat in a house) it wasn't able to properly match me to my credit record.

E.g. Say my address is Flat 3, Cherry House (hypothetically!), it was overlooking the 'Flat' line and just trying to find me under 'Cherry House'

[whoareyoukidding]

My understanding is that sometimes companies like to check that someone else has given you credit first, so that you have a credit background. I have heard that you should apply for a credit card even if you never use it, and then once you have it, you will find credit easier to obtain. But I am certainly not an expert on these things.

[Moo678]

I think you'd do better asking on money saving expert. I think there are three big credit check firms, not just Experian so it might be worth getting a report from all of them. Maybe it's because you've never had any credit? There are special cards for people with poor ratings which you can use to build up yours. Sorry I can't be more help but definitely check out the other forum.

[AnnabellaH]

You have to have credit to get credit. Get a Very account and buy something small. Or a new TV. Whatever. Then pay it off monthly.

[Chrys2017]

How long have you lived in your property? It could be that someone who lived there previously has a bad credit rating and it is showing up when the companies search your address.

[TheGoalIsToStayOutOfTheHole]

My FIL was refused credit and spoke to some company about it and apparently it went against him that he always paid off his bills and such in full. He had one credit card and had always paid it off rather than making minimum payments and that, he used this for a few years before closing the account (with no debt still). What he was told, is that credit companies see this as a bad thing, as they cannot make much money off people who pay in this way. Not sure how true that is though, never having really been in a position to get credit in the first place so tis jnto really something I know about, just what he was told.

[whiskyowl]

Yes, we are both on the electoral roll, and have lived at our address for 10 years. The address is absolutely bog standard - think 29 Acacia Road.

We have two credit cards, which we use regularly. The balance is paid off at the end of every month.

It's a total mystery to me why this is happening!

The strange thing is that the Ikano Bank (which is the one Ikea use) have checked our Experian score. Because I can see them at the top of the 'searches' section, with today's date! So they know we have an excellent rating. I am totally confused!

[Chrys2017]

To PPs: if OP has a mortgage and credit cards already then surely the 'not having been given credit before' problem shouldn't apply?

[Mince314]

I blame DFS.

they were always responsible for people getting bad credit rating in my last job

[whiskyowl]

DFS as in the sofa place? We've never bought anything from them!

[Mince314]

Paying your cc in full doesnt damage yr credit rating.

[ReallyAIBU]

Agree with moutonfou that if you have a complicated address, there may be different variations in which lenders record it.
Also when you checked your score with Experian, did you last all of the addresses you have been connected to in the last six years? Your score is only calculated on the information recorded at the addresses on your profile. - if you've lived at other addresses bur haven't listed them, any information recorded at these addresses will not be shown. It will only be shown under the "linked address" sectoon. However when a lender carries out a search they can see information at the linked addresses.

[whiskyowl]

It definitely isn't the address, it is absolutely standard. Our house doesn't have a romantic name or anything - we're plain ole '23 High Street' kind of thing. And we have been here for 10 years! So that should cover the time frame of the check, I think?

[thelastredwinegum]

Can you get a CC and pay off slightly more than the min each month but not clear in full?

www.moneysavingexpert.com/loans/credit-rating-credit-score

[Fellia]

I had this OP. I don’t want to worry you but it turned out someone else had been fraudulently using my address (long story and probably not likely in your case but it was a total nightmare)

Can you call Experian and talk to them? I’m not sure how much they’ll be able to help but maybe they can point you in the right direction.

Definitely post on MSE though there is a wealth of knowledge over there.

[flowersonthepiano]

Could it be affordability - income:debt ratio? I have a 999 experian score, but quite a bit of debt and a modest income and it's caused problems in the past

[Bunbunbunny]

Sign up to the money saving expert credit club, it was really good at looking at your credit report and offering advice. I needed to get my score up and it was lower than it should be as my credit card limit was low. It also shows you pre approved offers, its work asking on their site for advice

[ReallyAIBU]

Can I just add that previous tenants / owners of the property DO NOT affect your credit rating. It is based on the individual and anyone they have a financial connection with, not the address.

[mumonashoestring]

We have two credit cards, which we use regularly. The balance is paid off at the end of every month.

There's your problem, your creditors aren't making any money out of you therefore there's no incitement for people to lend to you.

DH improved his credit rating massively by taking out a smallish bank loan (6k repaid over about 2 or 3 years). He paid some interest on it but ensured he could afford sensible monthly payments and that meant the bank got a bit of a return on their 'investment'.

[Bunbunbunny]

Also check noodle and clear score both free credit checking sites

[Fluffypinkpyjamas]

The more you apply for the more likely you are to be turned down. Have you had a look at your entire report, not just the score?

[GottadoitGottadoit]

What's up with DFS?

[ChocolateButton15]

It might be the affordability side rather than your credit rating. Even if you have a good credit rating you still need to have enough available free income to make the repayments. Could it be that?

[megletthesecond]

Is your birth certificate name different to your usual name, ie; Elizabeth and Liz.

I have two versions of my first name and it messed up my first mortgage application for a while.