Is Experian bollocks? Denied credit.

[Thisnamechanger]

I'm the first person to hold my hands up and admit I have very little understanding of finances and credit but I logged onto experian and my credit score is currently 940 out of 999. That seems pretty good to me but I've been turned down finance on a Dyson and a mattress recently and I can't understand why.

I have a credit card which I pay half or all of each month (always make minimum payments), a planned overdraft, a store credit card which I alwasy clear in good time, a mortgage since about 2010 which I've never missed a payment on, never not paid rent and am full time employed.

Can't really understand it - surely I'm a good person to lend to?

Are you on the electoral register? Your credit 'score' is useless really as lenders don't see this number. They see the information contained on your credit file and make their decision based on that.

Someone I know had a problem with this because they used their married name on half their finances and their professional name on the other half. So the service they were applying for wasn’t finding sufficient evidence of their existence. It’s also happened when people have moved recently and so don’t have a long enough credit history at their present address. Could it be something like that ?

As well as pp suggestions, are you financially connected to someone who IS a poor credit risk?

Credit is a black art and all the worse for it, in terms of being consumer friendly.

Thanks for replies. Not married so I have my own name - ex fiance had a pretty crap rating but haven't been with him for 3 years and got the mortgage while I was with him....

Definitely on electoral register.

Could it be ex housemate?? No idea what his situation is but he's a total disaster with money. I missed a couple of bill payments when we bought out my ex because there was some confusion over what we should pay for an the new tenant should have paid for and it's all resolved now. Was only about three months late, if that, and energy company admitted fault.

I've never been denied a mobile phone contract and Argos were happy to give me a credit card (got the Dyson on that in the end!).

Won’t be anything to do with ex housemate.

When you say planned overdraft do you live in it? Planned or otherwise it’s a big no from a credit decision perspective.

And yes the ‘score’ is nonsense, what matters is your credit history.

When you say planned overdraft do you live in it? Ah, that'll probably be it then. I live in it about half the month I'd say. My DP does too though and he can get all sorts of credit so I didn't realise that was it. Bugger.

Any idea who quickly these things mend? I should be able to clear it in July but have been in it for literally years - pretty much since uni tbh.

Did you go direct through Experian or look at credit report website. I did that way and it was really clear the way it detailed each loan you have had and bank account etc. It shows how each effects your credit rating and also shows people that you are connected to who effect you.

It was free for first 28 days I think then you can cancel with no obligation anyway.

@Thisnamechanger one other thought - just check that Dyson used the correct info.

I once got turned down for a card and received a letter with my name spelt wrong - a Smith/Smyth type error. So clearly they'd looked for a nonexistent person because of their own carelessness!

One fairly irate reply later, shiny new card in hand....

Well there’s the other side of the coin as well isn’t there? If you clear your credit card regularly then your creditor isn’t really making much money from you in interest are they? I personally believe creditors like a good payer but not one who is ‘too good’ so they don’t get profit out of them.

If OP clears her overdraft should she then keep it and never (or rarely) go into it or cancel it altogether? I never know answer to this!

Are you still financially linked with your ex? If so, I strongly suspect this will be the reason why you cannot get credit.
Your credit 'score' means nothing - it is a marketing gimmick to get to to sign up to Experian. It is your credit 'history' which potential lenders go by.

gamerchick - I personally believe creditors like a good payer but not one who is ‘too good’ so they don’t get profit out of them.

What crap - a creditor wants their money back, not profit, they are checking to see if they will be paid regulary, so clearing credit cards is surely a better indicator of that than living in an overdraft every month?

All I can say is that DH and I have 5 credit cards between us, and clear every one each month.

We dont have a mortgage, no loans, no debts, no overdraft. Apart from the CCs, the only credit is phone contracts.

We have never been turned down for any application for credit (last being new Halifax Clarity CC last summer), so I am guessing we are doing something right by clearing credit cards each month and not having an overdraft!

The deny of credit doesn't always pertain to the credit rating.

Credit is based on the following;
Score
Aggregate borrowing
Affordability
Account conduct

So, you could be declined because your over all score isn't enough (doesn't seem the case)

Aggregate borrowing means how much secured and unsecured debt you have. If you have too much of the latter it will be declined (too much vs your income)

Affordability can be if you don't earn enough to "afford" more unsecured borrowing, but can also be if your free income allowance governed is taken over by the amount of children you have for example, so if you don't have enough "free income" to absorb the proposed amount.

Conduct is if you default on any payments, or, if you incur account charges for unattached borrowing (you accidentally go over your OD limit even if you rectify it the next day)

Everything other than affordability can be rectified if you stay squeaky clean for 3 months, 6 months even better.
Affordability can only be rectified if your income increases, your borrowing decreases, or you accidentally lose a child 😂

@Thisnamechanger register and look at the credit report website - it will explain all of this clearly.

Credit is based on the following;
Score.....

100% INCORRECT- your score is meaningless. It’s made up by the credit referencing agency. No one (including lenders) sees it apart from them and you.

Lottie, well...that's just not true 😬

Sparklefluff Yes it definitely is. Lenders do not see your score.

Just to clarify in case of confusion........ lenders will use their own scoring unique system to decide if they are willing to lend to you are not, but this is totally different to Experian ect score.

No one sees the score produced by credit referencing agencies use, but them and you. And you will never know what scoring system individual lenders use.

Please just register with the credit report website!! It is free (for 28 days I think)

It shows you all loans/bank accounts/credit cards/mortgages etc you have. It shows if and when your payments were made and if on time.

It shows how those individual debts effect your credit score.

It shows any people still financially connected with your name.

It basically tells you all you need to know.

.... credit is also based on things like your age!!! And whether you own your own home.