Bad Credit Report

[croyde]

Someone at Sainsburys approached me to see if I would sign up to their credit card and as she was pretty I said yes knowing that I would just not say yes when the paperwork arrived.

Got a letter a week later saying that they could not consider me due to a bad credit report.

Bloody surprised me as like a Lannister I always pay my debts.

Anyhow my Experian report arrived today and I can't find anything wrong.

Could the reason be because I don't incur debts so they won't get any interest payments out of me?

Cheers

[croyde]

Any takers?

Just concerned as I was thinking of purchasing my first new car in ten years by PCP if the rates are favourable and investing the cash elsewhere to hopefully make enough profit to pay the balloon.

I presume if I'm considered a bad credit that PCP, HP etc won't be offered.

[22]

Having a search done for a credit card, but then not signing up has a small negative impact on your credit. If this is repeated often for pretty girls then its impact will increase.

You might always pay off your credit card in full, or you may make minimum payments, both could show a 'good' payment history on a search, but very different propositions to lenders (who obviously want us to have credit card balances/loans outstanding for them to exist).

There are also different agencies for the banks to prefer. The credit agencies have become more money-supermarket-like, trying to match customers to products which might be a better avenue to explore if you did decide to go through with an application.

[MarcoD]

I think it's Sainsbury's credit algorithm that's a bit screwed. I've just been offered a 4% hike over their advertised rate on a loan after they 'considered' my application. I had a credit score of 996 with experian before I applied for the loan and earn 3 times the national average. If I don't get the advertised rate, just who the hell does?

To further rub salt in the wound my credit score has now been reduced by 15 points due to the application and this after the Sainsbury's phone bint tried to tell me it wouldn't impact on my score. I'm worried it'll now impact on my ability to get the advertised rate from another lender.

I won't be applying to Sainsbury's for any financial products in the future.

[PurpleMoonlight]

croyde said:

Any takers?

Just concerned as I was thinking of purchasing my first new car in ten years by PCP if the rates are favourable and investing the cash elsewhere to hopefully make enough profit to pay the balloon.

I presume if I'm considered a bad credit that PCP, HP etc won't be offered.

You are worrying now about something you intend to do in ten years time?

[turbobloke]

Those dishing out the credit aka debt don't see a credit score, they see the information on file and use their own methods on that. They may ask for it or use it in a survey snoop "is your credit score..." with intervals for you to choose from, that's the only way they'll get to know. Some people's finances don't fit the credit score computer profiling and get crap scores but easily available credit at low rates, others with a high score may have credit refused or offered high rates. It all depends on how a particular lender views your report info.

[eldar]

croyde said:

Any takers?

Just concerned as I was thinking of purchasing my first new car in ten years by PCP if the rates are favourable and investing the cash elsewhere to hopefully make enough profit to pay the balloon.

I presume if I'm considered a bad credit that PCP, HP etc won't be offered.

Possible you are too good a credit risk? CC won't make as much profit if you repay in full and don't pay interest.

[croyde]

PurpleMoonlight said:

You are worrying now about something you intend to do in ten years time?

Haha. I can see how that read. I meant it has been ten years since I last bought a new car.

So credit card companies won't like my report but mortgage lenders and finance companies will?

[turbobloke]

croyde said:

PurpleMoonlight said:

You are worrying now about something you intend to do in ten years time?

Haha. I can see how that read. I meant it has been ten years since I last bought a new car.

So credit card companies won't like my report but mortgage lenders and finance companies will?

Not knowing everything that's in a credit report, and with no reason to know or go into details especially on a public forum, the only thing to say for sure is you'll find out if and when you apply. Not much help I know but that's how it works! Personally I wouldn't place too much emphasis on a score. The loan people only know what this is if you tell them and even then it won't act as the be all and end all.

[Stiggolas]

I just had a similar experience to the OP, Equifax and Experian showed whiter than white yet still got refused.
Turns out a defunced account settled in 2009 had not been properly cleared and has been in default for 6 years!
It showed up on Callcredit's history but not the others!
Rang the company and they sorted it, now clean again.