Cannot get approved for any credit at all despite good score and no ccjs etc, frustrating

[Iamsocold888]

I had a debt repayment plan almost a year ago as I had around £7000 debts, but I received a family inheritance and paid the vast majority of it off, so was only using the plan for around 2 months.
I have around £130 of loan debt but nothing else, no overdraft, no cards etc and I use a credit boosting app

I’m on the electoral register

Haven’t had any missed payments for quite a few months

However I cannot even get approved for klarna due to my credit history. I’m not trying to take out a card or a loan otherwise, I just want to split the cost of something on klarna.

Out of interest i searched my loan eligibility and I wasn’t eligible for anything. It’s frustrating as my credit score is ‘good’ on Experian now, used to be very poor a year ago.

I am on track and save money each month, next to no debt. I’m not sure why I am rejected for everything as it’s been 6 months since the debt management plan finished too, is it going to take years until I can access anything ?

Do check your report with all three main agencies. In particular like a PP mentioned, making sure paid off debts are recorded correctly. There's four categories and they're a bit confusing.

"Satisfied" - Repaid completely without any default being marked. There can still have been things like arrangements to pay less.
"Settled" - Repaid completely but there were was a default marked.
"Partially satisfied" and "partially settled" - Not repaid completely. The creditor agreed to accept partial repayment and not pursue the rest.

If any defaults are filed, check that was correct. If you paid up on receipt of a "default notice" then the default must not be put on your credit record - you only actually default if you don't pay at that point. But the missed payments would still be obvious.

Isbt credit supposed to be a prop?
If you have disposable income to make purchases outright than. you do, to avoid paying interest or indeed having. to manage repayments.

If you dont have ready cash then you use credit.
As a prop to your spending.

Have you got your detailed credit file? Are there defaults on it?
Tbh, if you have a recent history of missed payments you are unlikely to be eligible.

NRTFT so this may have already been mentioned, but you can do a 'soft search' on Money Saving Expert for a credit card for people with poor/no credit history.

What happens is each time we apply for credit, be it credit card, overdraft, Klarna, store card etc this all shows on our credit record and multiple searches raise concerns for the lenders. We look desperate due to the volume of applications and all the declines make us look a bad risk. Bit of a Catch 22.

The 'soft search' mentioned above doesn't record anything on our credit file but will show who will accept us for a credit card. Expect higher APR and interest rates but they can be very good at re-building if you pay the full amount (or even the minimum payment) each month. Paying in full just does it quicker.

I think a friend of mine re-built their credit score with one of these cards, and literally took out £50 cash on the credit card each month, kept it safe and a few weeks later paid the credit card bill with it.

You can also apply to Experian and Equifax, the 2 main credit score places to manually add an explanation to your file. So you could contact them and ask for it to be put on your file that you had some debt and due to some issues with increased living costs/a period of little or no work/poor cash flow - whatever reason it was - you got a bit behind so arranged a voluntary time to pay with lenders until you received an inheritance and used that to settle the balances. When this is on your file lenders have to actually read the info and make a decision about lending, rather than it being an automatic, computer generated decline.

I hope this helps as 6 years is a loooong old wait!

You’ve mentioned Klarna a few times - I accidentally defaulted on payments to them. Completely forgot that I’d paid for something using Klarna and I’m now completely blocked from using that method - despite paying for it immediately when I discovered.

Interestingly didn’t have any email/correspondence from them at all when I missed payment