Failed Credit Check - How to investigate without more damage

[Creditconfusion]

Long time user, changed name and posting here for traffic as I'm in a bit of a panic.

Was offered an incredibly mobile deal from my TV provider who I have been with for about 15 years. Have been with my current mobile provider for over 5 years. I was shocked to find out I failed their credit check.

For background, I rent my property, I have no credit card, I don't miss payments on anything and I'm panicking about why I failed as I am looking to get a mortgage soon. Is there any way I can check SPECIFICALLY why I failed? For example if it's because I don't have enough proof of credit would this show somewhere?

I don't think there is. I failed alone but passed others, credit card, electoral rule no dent and mortgage. I think the banks are more thorough though.

You could join sine credit reference sites and check all the details are correct though and apply to amend them if they aren't

Have you got an independent credit check from Experian?

If it's a too good to be true deal, it might be a dodgy sales tactic when they have only a certain number of packages and then then use the failed credit check to get you off the line.

Join Clearscore. It'll list the things that can be improved on your score.

My DP has a rubbish credit score but it turned out it was because he wasn't named on enough bills, electoral register (we'd just moved) and they didn't have enough info on him.

I'm not sure if you can check to see why you failed, but you can check your credit rating by singing up to clearscore or Experian. It'll give you some pointers on improving your score.

Incidentally, I failed a mobile phone credit check last year, it didn't stop me getting a deal with another company, buying a new sofa set or another mortgage, each of them a new credit application.

You could try clear score or a similar credit check site?

Thanks @RedHelenB

I think that you every time someone runs a check on you it makes your score even worse! I wish I understood more about these things. I'm so upset because I've never been in debt!

Just to check though, are the bills all in your name, are you on the electoral register, does your address exist on the royal mail website in its own right?

It’s probably because you don’t have a credit card-get a credit card from your bank and use it, but pay it off in full every month.

Our bank account is linked to our mortgage so that all the money in the account is classed as of the mortgage for interest reasons. We leave all our wages in our account all month and use the credit card for everything and then pay it all off at the end of the month on pay day. The trick is to obviously only spend as normal and not go crazy creating a debt!

I’d do 2 things - check the details with the mobile phone company are right. When I changed my address with my credit card company they got the post code wrong. When they performed further checks my credit limit decreased from thousands to £300 -definitely made me panic. Just cos you’ve given them the right details doesn’t mean they’ve either stored them correctly or performed the check on the right address.
Secondly check your credit record with a couple of different agencies to see if there’s anything that’s causing it.

And that's probably why you failed the credit check - no.debt history.

Oh that's great, thanks everyone! It's a start at least. If it was a sales tactic (if they lied) would I be able to do anything about it? I don't want cash compensation or anything but if they lied and made me panic over nothing could I report them to someone or is it pointless?

You need to look at it differently. It's not "passing" or "failing". |Each organisation will look at the information on your file and decide whether to accept you. Some organisations are much more risk averse than others, and they all have their own rules.

If you've looked at your credit history and report, and there are no errors or really obvious things like CCJs or that you're not on the electoral roll, then there;s little you can do. Companies don't disclose exactly how their risk management process works for obvious reasons.

@Creditconfusion

Thanks *@RedHelenB*

I think that you every time someone runs a check on you it makes your score even worse! I wish I understood more about these things. I'm so upset because I've never been in debt!

That's possibly why. If you've never been in debt you've never proved you can pay it back. The way credit reports work, they assume that if you've done it before you can do it again. But without previous debt they don't know if they can trust you.

Check my file is a service where you get the report from all of the credit check agencies, however the most likely explanation is that you don't have a credit card or any other forms of credit to monitor your history of payments.

It's silly that someone with credit can get more credit, but someone who doesn't spend much tends to be viewed as more of a risk?

@Timeforabiscuit

Bills are all in my name and I'm on the electoral register!

Was it Sky? We failed a credit check with them for a mobile about a month ago, there was no reason for it. We now have contracts with other providers where the credit checks were no problem.

Clear score. It's free and clearly lists positives and negatives

Everything you need to know here:

www.moneysavingexpert.com/loans/check-free-credit-report/

Are you on the electoral roll? That's a biggy. Plus you need to get a credit card and use it to pay for a few of your normal purchases and pay off in full by direct debit every month.

There are so many advantages to having one that have nothing to do with borrowing money, that I don't understand why so many people don't have one.

What I meant about passing/failing:

There are lots of things you can do to improve your credit score.

But you can't ask an individual organisation to explain their credit scoring process, or tell you why they refused you.

Not having a credit card is probably why, as mentioned by a previous booster.

Get a 0% one, pay it off each month.

Hello, i'm a mortgage broker and deal with credit score issues fairly often.

Having a look at your credit score, either through experience or equifax's services will not make your score worse. Its called a 'soft' search and doesn't register on your file. Its worth doing if you are having an issue.

Also, you can fail a credit score for never having any debt (!) As you haven't got any track record of reliably paying off debt. So getting a credit card using it for a small purchase (£5 at Costa would do) and then paying it off in full each month can improve your score.

Finally, make sure you are on the electoral role as PP have suggested.

Don't panic. Of all the things that cause unknown credit issues, mobile phone DD's are the one I see most often. Good luck in getting to the bottom of it.

Your 'score' isn't the important bit, it's your credit history that matters. As you're thinking of getting a mortgage soon I'd suggest you get your credit history from all providers (I think there are 3 including experian). This way you can check for any adverse history on your credit report.
I don't know why you would think the sales person lied - They want to make the sale.

Please ignore your credit score, it is absolutely meaningless. Credit providers such as banks are only interested in your credit history, which shows how you have handled credit in the past. If you have no other means of credit then you have no evidence of showing you pay it back. The score give an idea of the state of your credit report, but providers don't see your score.

You will not be able to find out the specific reason why you failed this application, so don't waste time trying.

As others have suggested you should check your credit report with the three providers - Experian, Tran Union (free through Credit Karma) and Equifax (free through Clearscore). Check all the data to ensure it is correct, make sure you have no CCJs or CIFAS markers. It could simply be a sales ploy and an excuse, if all your data is correct then move on and get in to the habit of checking your report monthly - not for the made up score - but because it can flag up issues.

Agree with others. You don’t have credit cards or debt, so there is no history of you paying back debt.
Some people don’t realise that having a credit card or paying for items monthly is not necessarily a bad thing.

Thank you all so very much! I'm guessing it's a lack of proof that went against me in this case. It just worried me as it's never happened before! And yes, it was Sky who had offered an 'unbelievable' deal that my current provider couldn't match.