Credit

[Shaun]

Originally Posted by me283

I am pretty sure that the Data Protection Act means they have to tell you of any information they hold about you. Now, if they are declining an application, then they must be basing that on some info. It may seem trivial to you, just name, address, length of time at that address etc, but it's info all the same. Also, when you call them you should ask to speak to the department that sanctions credit and politely ask why you have been refused. Explain that it's not a problem, but that you would like to understand what they find so risky about you.

I think you'll find the credit scoring process uses a secret algorithm (that changes regularly depending on what promotions their doing) and all the agent gets is a yes/no decision based on a figure that's output.

The data they then hold on you is the info you gave them, info from the credit agency(s) they use and the final figure given from the algorithm, nothing that will help you understand why you were turned down.

[me283]

Originally Posted by Chrysalis

Well when it was done over the phone the computer decided, the guy even told me he answered the computer's questions and it threw out an automated response so he couldnt tell me and I had to wait for a letter. Your own experiences of getting credit and mine seem completely different, the rent thing losing you points was defenitly news to me.

I think credit cards should still be sent but if the person is considered risky why not just plonk a stupid limit like £50 on it to start it off and see how the customer handles it, the worst that can happen is they get £50 out of pocket.

The thing with computer systems is they can always be overrided (overridden?), you just have to ask for someone more senior.

The issue of renting against owning is multifold: a house owner will hopefully have some form of equity for the company to pursue if the cardholder doesn't pay; the renter will be harder to trace, but will find it easier to abscond. Also, people usually rent for comparitively short periods, hence there is no real stability for the company to reflect upon.

The problem with setting too low a limit is that it will soon get used up; then people would keep asking for an upward review. In addition, if you default for such a small amount it really isn't worth pursuing, but a lot of small debts would add up to a fair old whack.

I would honestly ask to speak to the credit sanctions department and find out why you are being refused credit.

PS My experiences tend to be more from the granting of credit, as opposed to requesting it.

greencreeper: http://www.compass-finance.co.uk/htm...air.asp?intro=

It's free

[me283]

Originally Posted by Shaun

I think you'll find the credit scoring process uses a secret algorithm (that changes regularly depending on what promotions their doing) and all the agent gets is a yes/no decision based on a figure that's output.

The data they then hold on you is the info you gave them, info from the credit agency(s) they use and the final figure given from the algorithm, nothing that will help you understand why you were turned down.

That's what some companies would have you believe, but more often than not there are people who can make or change a final decision.

[SMHarman]

Originally Posted by Angua

Nah, they have cottoned on to the fact that folks panic about their credit rating and so are offering a service to the gullible (this "special" service does not even tell you what is on file about you or your address (like the reports you have requested), just your credit rating )

Yes it does, it gives you the same report, all the payment histories etc, plus it scores the report.
__________________

Originally Posted by me283

I am pretty sure that the Data Protection Act means they have to tell you of any information they hold about you. Now, if they are declining an application, then they must be basing that on some info. It may seem trivial to you, just name, address, length of time at that address etc, but it's info all the same. Also, when you call them you should ask to speak to the department that sanctions credit and politely ask why you have been refused. Explain that it's not a problem, but that you would like to understand what they find so risky about you.

Information and source of information, not how they assess that information and the value they place on the different aspects of that information.
Though, common sense dictates which parts usually cause a problem. In the OPs case a 14k salary and 0 debt it is likely to be
1. Lack of data on the credit report
2. Historic credit problems at the address
3. Electoral roll
4. Incorrect association with other family members.

Re. 4. when I moved out of my parents address Orange wanted a £150 security deposit for me to take out a mobile phone contract (oh, those were the days before PAYG etc). My credit report obtained soon after had me linked to my parents, thus I had two mortgages and three car loans on my credit report and obviously would have found servicing such debt a little difficult. A notice of dissasociaiton soon fixed it.

[Chrysalis]

Originally Posted by Paul M

You must be kidding. Who do you think would end up footing the bill when thousands of these £50's are lost ? - the rest of us who don't run off with the money.

Umm the same people who foot the bill when someone who has 10k debt gets another 5k credit card and leaves a 15k bill behind.
__________________

Originally Posted by me283

The thing with computer systems is they can always be overrided (overridden?), you just have to ask for someone more senior.

The issue of renting against owning is multifold: a house owner will hopefully have some form of equity for the company to pursue if the cardholder doesn't pay; the renter will be harder to trace, but will find it easier to abscond. Also, people usually rent for comparitively short periods, hence there is no real stability for the company to reflect upon.

The problem with setting too low a limit is that it will soon get used up; then people would keep asking for an upward review. In addition, if you default for such a small amount it really isn't worth pursuing, but a lot of small debts would add up to a fair old whack.

I would honestly ask to speak to the credit sanctions department and find out why you are being refused credit.

PS My experiences tend to be more from the granting of credit, as opposed to requesting it.

Yeah next time I decide to try Ill do it, I never start repeated applications since once you declined they use it against you on a subsequent application. So I always wait many months. Plus I am not desperate for credit I just want it as it is more safer for online shopping.

[me283]

Originally Posted by Chrysalis

Yeah next time I decide to try Ill do it, I never start repeated applications since once you declined they use it against you on a subsequent application. So I always wait many months. Plus I am not desperate for credit I just want it as it is more safer for online shopping.

Just a thought, but you could always use a debit card?

As for repeat applications, I would always ring up once you receive the letter and ask for someone to clarify it; you may find it's a marginal decision that they are willing to reverse, plus it saves waiting, as well as filling out another form.

[Chrysalis]

Originally Posted by me283

Just a thought, but you could always use a debit card?

As for repeat applications, I would always ring up once you receive the letter and ask for someone to clarify it; you may find it's a marginal decision that they are willing to reverse, plus it saves waiting, as well as filling out another form.

I do use a debit card but the risk is frightening, one rogue company can empty the bank account since there is no limit on the card and it has less protection for online purchases.

[Graham]

Also Debit Cards don't give the protections of Section 75 of the Consumer Credit Act (although apparently Visa *will*, on some occasions, compensate you if you're ripped off when using a Visa Debit card)

[BBKing]

Since my partner's managed to get herself a credit card again despite a credit history that makes BCCI look well run, I reckon anyone can. The limit's tiny and the interest is extortionate, but since it's for emergency use when abroad on her own (which could mean the difference between safety and danger) it's worthwhile. It's a CapitalOne one, incidentally.

[Chrysalis]

Originally Posted by BBKing

Since my partner's managed to get herself a credit card again despite a credit history that makes BCCI look well run, I reckon anyone can. The limit's tiny and the interest is extortionate, but since it's for emergency use when abroad on her own (which could mean the difference between safety and danger) it's worthwhile. It's a CapitalOne one, incidentally.

Capital one were the ones who rejected me last, I did an app following a discussion in another thread and applied for the one thats apperently for people with bad credit rating's.

To add to this, my younger sister and her boyfriend who both work and live at the same address. My sister earns 14k a year, has current overdue debt owns a car and drives but is only on a fixed term contract renewed annually has no problem getting credit. Her boyfriend is a graduate in permanent employment for 6 years now on 17k a year has only one card which is clean and cannot get credit.

[Shaun]

Originally Posted by Chrysalis

Capital one were the ones who rejected me last, I did an app following a discussion in another thread and applied for the one thats apperently for people with bad credit rating's.

They do a secured credit card where you pay a deposit (the amount depends on how much of a risk they consider you to be), they say the only way to be turned down for that is to have been involved in fraud.

If you just want a card to rebuild your credit rating then it may be worth a call to them.

[Angua]

Worst thing is, everytime you apply for a different card or any service requiring a credit check it leaves a "footprint" on your credit record. IIRC if there is more than 6 such "footprints" in any 12 months that also blows your credit rating.

[Chrysalis]

Originally Posted by Shaun

They do a secured credit card where you pay a deposit (the amount depends on how much of a risk they consider you to be), they say the only way to be turned down for that is to have been involved in fraud.

If you just want a card to rebuild your credit rating then it may be worth a call to them.

Thats the one I got turned down for, I have never done fraud.

[Seti]

I applied for a bank account, nothing spectacular but I have to pay carers from it. So I toddled off to Lloyds TSB. Everything was going swimmingly untill this massive popup appeared on the credit controllers screen saying "refer to CIFAS".

So off she went and rang the credit bureau, came back and went we are not going to proceed with your application. When I asked why I was told to get hold of Experian which I have done.

Imagine my complete shock and horror when I opened the report to find out Black Horse FInance had "forgotten" to report that my loan with them was satisfied and British Gas had also forgotten the £80 odd quid I payed them for my last address, even though the bill was not in my name.

Worse was to come. I have never ever been in any trouble, I am a good girl ;-) well so they tell me, but I had this massive CIFAS warning. It said all financial insituitions were to reject ANY application made by myself. I was completely mystified untill I read a little further and found a "Gemma Jones" on my report. I have nothing to do with her, I dont' even know who she is and she has a birth date 21 years and one day less than mine. SO I rang experian to be told "Sorry we dont' deal with that."

I am now left in a quandry. I have spoken to the police to make sure I haven't been the victim of some identity fraud or that they haven't arrested me without me knowing. I will now have to find another tenner to pay for a fraud investigation done by CIFAS. Untill then, as ususal, my life is left in limbo.

To those who can not get credit, then PLEASE get your reports and CHECK them. Apparently I am due some compensation for my "distress" as no other name is supposed to be on my credit report. We wil wait and see. Probably be a bunch of flowers or a mouldy doughnut.

Sian