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 have worked my entire life, never had a loan, never had a credit card; never been in debt or paid for anything on credit. Work as a teacher.

Was refused a mortgage last month for a poor credit rating. Mortgage broker advised buying something on credit, repaying and trying again next year. The whole system is fucked.

When my debt increased it improved my credit rating and my ability to get credit.

Crazy I know!

I've since learnt that if you pay everything off in full every month you are not a "profit generating customer" and credit lenders don't want to know.

keep one credit card £50 below zero for a few months so you generate a bit of interest for the lender then try again!

They ideally want someone who won't default, but also won't overpay too much before the 0% deal is up so you pay them some interest, otherwise you're not worth the admin fees of having you as a customer!

Is your credit card limit high? Even if you do not use it all there may be the potential there to use it.

Annoying when you know you can afford the payments and have paid everything on time in the past

I agree that check my file is far better than experion because it shows a bigger picture. Their support message service is excellent too they should help you.

Your score number is not necessarily what lenders are looking for

Refusals go on your record. Refusals beget refusals.

You are now probably being turned down because you've previously been turned down.

Previous applications (if recent) are taken into account but wont be the whole reasonl

Much more likely thst OP is considered a non profit generating customer, so they realise she is low risk, but shes also unlikely to mske them a penny in interest at the end of the 0% deal so not worth bothering with

Sorry if this has already been mentioned but when we bought our first house, another FusionChefGeoff was found with the same DOB!! Lived in a completely different county but had CCJs.

I had to sign something to declare it wasn’t me.

Thankfully, it hadn’t caused any other problems but maybe it’s something like this? Could you perhaps ask a solicitor if they can do a search for you!??

Refusals go on your record. Refusals beget refusals

Not true. Credit records include no overt information about what applications were approved or declined. And in the abscence of other negative information a single refusal is unlikely to lead to an avalanche of refusals of credit.

Some providers have an ideal customer and the OP may not fit Ikea's profile. However, in the case of interest free store credit, I can't see how the customer being too good a risk is the case, because it's a fixed term, interest free deal. The whole point is to pay the loan off as agreed in the interest free period. It's not like introductory credit card offers where they hope you will make mistakes so they can take the offer away or fail to pay the balance off in the 0% period so you will be left to pay a balance at the standard rate.

Check my file really are very good, you can chat online to their support team and they'll advise you based on your record. They've sorted out things for me in the past (I had a good score but a "linked" address due to a type error etc)

I have a perfect credit score and have been turned down for credit cards (only wanted them for free wine ). Whoever ^^above said the system is fucked is right. They don't want customers who won't generate a profit.

I had a similar problem when I last renewed my mobile phone contract. Unbelievably the system was refusing my application due to someone else from my postcode having poor credit. Not someone from my household at all.

It was only resolved when another employee at the shop suggested it could be a postcode issue as apparently it happens sometimes.

I just wanted to update this thread.

Firstly, THANK YOU so much to everyone who was sympathetic, kind and offered advice. I was in a bit of a state on Friday, as you may have gathered, and you really helped. I appreciate it. While I realise fully what a first world problem this is, I'm at the dirtiest, coldest, hardest phase of building work in my house and every tiny thing that doesn't go to plan at this point feels much bigger than it actually is.

Anyway, here's the update: we just had a phone call to say we'd been offered credit. No explanation about the delay, or anything - the person on the end of the phone genuinely didn't seem to know. But the main thing is we can now order our kitchen.

Unfortunately, because of this delay we've probably lost the opportunity to get it in before Christmas, since pre-Xmas delivery dates were already really booked up on Friday and will be even more so now. But hey ho, you can't have everything and it will be worth the wait.

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!!).

Agree with a PP, I have a PhD but use the title rarely (on MN mainly, it seems!). I think I have one credit card or bank account from the heady days when I got my PhD where I changed my title straight away, everything else is recent and has Ms. I have had no problems getting credit.

Oh that's great news OP, and maybe it's worth applying for a few more credit cards or store cards in a few months' time just to have a bit more "success" on your/DH's records?