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!

I had this once - turned out that the council had randomly recorded our details on the electoral roll as Firstname Firstinitial Surname (instead of Firstname Middleinitial Surname).

No idea why - they'd had it right before, we hadn't moved house or anything. It took weeks for me to spot the tiny error. (I'd looked at credit records but hadn't spotted this so everything looked fine.) By which time the house we wanted had gone under offer and house prices had shot up (just after Help To Buy was introduced). So we lost our only chance to buy a house where we live. Gutting. All because someone put the wrong initial on a form.

Oh bloody hell bluehair - that puts my problems into perspective. I'm so sorry, it sounds utterly shit. There's something about being shafted by a faceless bureaucracy that feels so frustrating. It's almost worse because it's a system and not an individual doing it. for you.

I think we're recorded OK on the electoral register. It's coming up on both Noddle and Experian that we are both registered at our address, so they have made that link.

Why don't you buy a property of relatively less value by getting loan from micro-financing companies. Micro-financing companies don't ask for credit history or don't see your collateral. Once you buy a property in this way, use that to apply for any other credits and they will surely get approved.

I use clearscore and it shows positives and negatives on my credit score, but it uses experian for the info, so it will probably give you just the same information.
I would try the geniuses over at Money Saving Expert. They should be able to help think of anything that might be an issue. As your credit score is so high it's hard to think that not clearing your cc would have an effect.
If you had a low score then taking out and using a credit card, or having a small loan would make an impact on that. I convinced DH to do this after I showed him how much better my credit rating was than his - I was reckless with money when younger and he never had a 50p overdraft.

Presumably if you have lots of disposable income, you will have savings well above £6k and you may have to chalk the vagueries of the credit scoring system up to experience and pay cash? I know it's irritating but the interest lost will be relatively small.

And if you don't have savings, there's your answer, they think you can't afford a loan.

anna - the Ikea offer is for 0% credit on the kitchen over 36 months. It's like a store credit card system - not the same thing as a loan. I'm more worried by this total mystery of why I can't get credit than I am about the financial side of it. I'm sooo fucking lucky to be able to type that, I know.

Yes- what mumonashoestring said

I had a similar problem applying for a car on finance years ago; I had one credit card that I always paid back in full and a small phone contract. Despite having kkk in savings (was saving up for a house deposit) they kept saying no!
I ended up booking a holiday on my credit card and not paying it back in full for a couple of months. Hey presto, car finance agreed.

After we moved house I took out a small loan for home improvements. I now have companies chucking credit at me. I agree it's really frustrating.

Get a full credit report for each of you from the 3 main credit reference agencies (Experian, Equifax and CallCredit). They'll cost £2 each. Check them and see if there's anything untoward on there.

Credit rating and credit referencing are quite different. It's possible to have a high score on your rating, but still have something weird on your credit report that is nothing to do with you. A colleague of mine found that a neighbour's late payments were showing at her address (the neighbour was at house number 14, my friend at 24, so conceivably a typo) and when she got it corrected, things got a lot easier.

The other thing is that being turned down for credit leaves a "trail", so stop applying for stuff until you've got it sorted.

barbara - yes, I can pay using savings. My question is really not about the financial workaround but about WHY this is happening - I am slightly worried that something is happening on my file that I'm not aware of.

Hi. Is there a loan attached to your mortgage? Or similar? Because if so, then maybe it shows you owe a lot of money and therefore you become a risk. If this is the case you can usually and sometimes add a little note to your file to explain. Some creditors might not see the note though.

Also check for defaults. They remain on your file for 6 years. These can be added to your file by something as simple as a late mobile phone payment. Very annoying.

Any persons linked to you? You can check that in the relevant section.

Cross posted on the interest issue. Could being married but not having the same name be causing issues? I know it shouldn't, but sometimes automated systems throw out applications with any tiny anomaly.

No, no loan attached to mortgage. On all the credit reports, the amount we owe is down correctly. It's about £50k.

No defaults, or late payments. Not even one.

DH and I are only linked to each other on Experian. Noddle has his ex-GF down, from the early 00s, but she's very solvent too (she's a very close friend of mine so I know this for a fact - she's much richer than me and for a range of reasons that I won't mention here because they are private and about her, I have helped her and her husband to manage their bank accounts, so I know her financial situation inside out and it is completely fine).

barbara - Oooh, interesting thought - I will check that out!! It could be, since both problems came after we were married.

I'm going to take a bit of a break from this now, as it's driving me mad and I'm reaaaaaally tired and wired and need to chill out a bit. I'll try to check back in the morning and follow up any questions/suggestions. I REALLY appreciate everyone who has taken the time to try to help. It's really kind of you all.

There are no CIFAS warnings on the file

You know that for sure?

You'll only see certain categories of Cifas on your credit you know.

Owing £50k is a lot though. It might frighten a lender. Hope you get it sorted OP xx

Sorry, I should have been clearer - £50k is the amount outstanding on our MORTGAGE. We have no other debt.

wish - The Noddle thing has a CIFAS section and it says "no CIFAS warnings". That's all I have!

Interest rates have just rose and banks are scared to lend. I had the same this week. Loads of equity, short mortgage, a small loan that’s ticking over and I can’t get credit.

Are you historically linked to anyone with bad credit? That’s all I can think of?

I've had a scan through your updates and don't think you've said whether you and DH Work? Sorry if you have and I've missed it.

All the obviously things have already been covered by PPs so wondering if this could be it?!

Sorry, just seen the post when you said OH earns a decent salary and you have an income. If you apply do you still fail to get past the credit check?

Is your DH's credit fine? You refer to yours a lot but if its his name as the application, the issue is on his end.

You don't share credit - you are considered as two entities, married or not.

It can be the tiniest thing - a forgotten mobile bill, a little payment of insurance that was missed at the end of the contract.

Apologies if I've misread :)

On an Experian report 999/999 indicates bad credit, a default or worse. 998 is the max you can score.

Yes, DH's credit is perfect - the application is in his name so it's his stuff I'm talking about. Mine is excellent too.

Will look into an Equifax report tomorrow.

I am wondering - stimulated by barbara's suggestion whether the problem might be something as minor as a title. DH is a professor. His bank account is still in the name of 'Dr' because he's stupidly, ridiculously modest and hasn't updated it, PLUS he puts himself down everywhere as 'Mr' (no, he's not a surgeon where this is the convention!!). I wonder if this discrepancy could be triggering a red flag on a computer? It's literally all I can think of.

Also, I kept my maiden name through our marriage, so if others have found that to be a problem, it could be that??