Credit rating and loans

[Jhonno]

I've just tried to apply for a cheap loan to bridge a new car purchase, but whilst advertised at 2.8%, it has come back agreed at 7.1%..

Which has inspired me to check my credit rating, but for some reason none of them can find me? I am on the electoral register, have bank accounts/direct debits, credit card I use and pay off, have borrowed a couple of loans previously, and I am sure I have been found previously..

I moved 6 weeks ago, could this be a factor? I am bemused at why suddenly I am an apparent risk to lend to, when I have had previous loans (paid off), never missed a payment/direct debit etc, not really in any way worse financial position than I was previously..

[anonymous-user]

This is why they want your addresses for the last three years, so they can tie you to credit history at other addresses.

Very surprised this didn't show anything.

[Jhonno]

Joey Deacon said:

This is why they want your addresses for the last three years, so they can tie you to credit history at other addresses.

Very surprised this didn't show anything.

That is what I thought.. I definitely had it checked at the last house too.

I am confused too, and wondering if this is affecting my loan rates.

[Sarnie]

Jhonno said:

I've just tried to apply for a cheap loan to bridge a new car purchase, but whilst advertised at 2.8%, it has come back agreed at 7.1%..

Which has inspired me to check my credit rating, but for some reason none of them can find me? I am on the electoral register, have bank accounts/direct debits, credit card I use and pay off, have borrowed a couple of loans previously, and I am sure I have been found previously..

I moved 6 weeks ago, could this be a factor? I am bemused at why suddenly I am an apparent risk to lend to, when I have had previous loans (paid off), never missed a payment/direct debit etc, not really in any way worse financial position than I was previously..

"I moved 6 weeks ago"...............thats your problem........you may be on the electoral roll at your new address but is this reflected on your credit file?

[Jhonno]

Sarnie said:

Jhonno said:

I've just tried to apply for a cheap loan to bridge a new car purchase, but whilst advertised at 2.8%, it has come back agreed at 7.1%..

Which has inspired me to check my credit rating, but for some reason none of them can find me? I am on the electoral register, have bank accounts/direct debits, credit card I use and pay off, have borrowed a couple of loans previously, and I am sure I have been found previously..

I moved 6 weeks ago, could this be a factor? I am bemused at why suddenly I am an apparent risk to lend to, when I have had previous loans (paid off), never missed a payment/direct debit etc, not really in any way worse financial position than I was previously..

"I moved 6 weeks ago"...............thats your problem........you may be on the electoral roll at your new address but is this reflected on your credit file?

Erm.. Any way of finding out?

[Sarnie]

Jhonno said:

Erm.. Any way of finding out?

On your credit file......Ideally Experian or Equifax......

[Jhonno]

Sarnie said:

Jhonno said:

Erm.. Any way of finding out?

On your credit file......Ideally Experian or Equifax......

I will have a look..

[Jhonno]

Right, Experian have found me.. My credit score has dropped from 998 to 768 in the last 10 months..

In that time I have taken out a 0% card, cancelled an old credit card, moved house (rented), cancelled a mortgage application as the purchase fell through, and applied for 2 loans (2nd one was to check the first one wasn't an anomaly, and was cancelled).. Never missed a payment etc, have direct debits, use a credit card and pay it off monthly, 4k currently on the 0% card.. Has this really ruined my rating?!

[GregK2]

I would give it a few months before applying again. That's a lot of activity in a short space.

Edit* I had a similar problem and found that applying for a loan with my bank gave the best result. Slightly higher than the best advertised rates that were on offer but still good. (3.4%) I would still give it a few months though.

Edited by GregK2 on Wednesday 3rd October 10:51

[DonkeyApple]

Jhonno said:

Right, Experian have found me.. My credit score has dropped from 998 to 768 in the last 10 months..

In that time I have taken out a 0% card, cancelled an old credit card, moved house (rented), cancelled a mortgage application as the purchase fell through, and applied for 2 loans (2nd one was to check the first one wasn't an anomaly, and was cancelled).. Never missed a payment etc, have direct debits, use a credit card and pay it off monthly, 4k currently on the 0% card.. Has this really ruined my rating?!

What can they sell you that will make this vital, life threatening problem go away?

[Jhonno]

DonkeyApple said:

Jhonno said:

Right, Experian have found me.. My credit score has dropped from 998 to 768 in the last 10 months..

In that time I have taken out a 0% card, cancelled an old credit card, moved house (rented), cancelled a mortgage application as the purchase fell through, and applied for 2 loans (2nd one was to check the first one wasn't an anomaly, and was cancelled).. Never missed a payment etc, have direct debits, use a credit card and pay it off monthly, 4k currently on the 0% card.. Has this really ruined my rating?!

What can they sell you that will make this vital, life threatening problem go away?

Who? Experian?

[devnull]

Jhonno said:

Right, Experian have found me.. My credit score has dropped from 998 to 768 in the last 10 months..

In that time I have taken out a 0% card, cancelled an old credit card, moved house (rented), cancelled a mortgage application as the purchase fell through, and applied for 2 loans (2nd one was to check the first one wasn't an anomaly, and was cancelled).. Never missed a payment etc, have direct debits, use a credit card and pay it off monthly, 4k currently on the 0% card.. Has this really ruined my rating?!

I did the same-ish thing last year. Sold house, moved into rented, got a 0% card for work expenses, opened a joint account, updated a loan.

Rating went from 999 to 600 or so. Took about 6 months to get back to 999.

[Jhonno]

devnull said:

Jhonno said:

Right, Experian have found me.. My credit score has dropped from 998 to 768 in the last 10 months..

In that time I have taken out a 0% card, cancelled an old credit card, moved house (rented), cancelled a mortgage application as the purchase fell through, and applied for 2 loans (2nd one was to check the first one wasn't an anomaly, and was cancelled).. Never missed a payment etc, have direct debits, use a credit card and pay it off monthly, 4k currently on the 0% card.. Has this really ruined my rating?!

I did the same-ish thing last year. Sold house, moved into rented, got a 0% card for work expenses, opened a joint account, updated a loan.

Rating went from 999 to 600 or so. Took about 6 months to get back to 999.

Bugger.. Does seem being a normal person isn't good for credit ratings then! Tossers.. I need the loan in the next 6 weeks (to bridge finances waiting for some other money to come in), so will have to accept the 7.1% and maybe pay it off early, and take another when my rating recovers.

[Sarnie]

GregK2 said:

That's a HUGE amount of activity in a short space.

Edited by GregK2 on Wednesday 3rd October 10:51

Edited for you!

Applied for a second loan to check that the first one wasn't an anonomoly??

Applied for a mortgage that didn't go through.........change of address is the big one though.....and the effect of likely not being on the electoral roll on your credit file too.....

[Welshbeef]

OP can you nurse the car you have along a bit longer until you clear the £4K on credit cards?

This time aspect will give you more time at new address reduce the unsecured debt and move you away from a lot of noise on the credit report. Bound to help.

[Jhonno]

Sarnie said:

GregK2 said:

That's a HUGE amount of activity in a short space.

Edited by GregK2 on Wednesday 3rd October 10:51

Edited for you!

Applied for a second loan to check that the first one wasn't an anonomoly??

Applied for a mortgage that didn't go through.........change of address is the big one though.....and the effect of likely not being on the electoral roll on your credit file too.....

Well, I was shocked at being offered a "rubbish" rate.. The guy on the phone said they had a price promise, I probably mistakenly (although the damage was already there apparently), tried my bank for the same loan also, hoping they might offer a better rate as an existing customer.

Mortgage was approved etc.. The house purchase fell through further down the line, so the application cancelled.

I have made sure I am all registered properly on the house online last night. The old occupants were still registered there.

[Jhonno]

Welshbeef said:

OP can you nurse the car you have along a bit longer until you clear the £4K on credit cards?

This time aspect will give you more time at new address reduce the unsecured debt and move you away from a lot of noise on the credit report. Bound to help.

Unfortunately it is for the missus, she is due to hand her car back on PCP so needs another car.

I was going to use the loan to then buy myself a car when she has squared me up, but I might have to pay it off early with her paying me back, and keep nursing the poor old thing a bit longer as you say, to clear this "noise".

[Sarnie]

Jhonno said:

Well, I was shocked at being offered a "rubbish" rate.. The guy on the phone said they had a price promise, I probably mistakenly (although the damage was already there apparently), tried my bank for the same loan also, hoping they might offer a better rate as an existing customer.

Mortgage was approved etc.. The house purchase fell through further down the line, so the application cancelled.

I have made sure I am all registered properly on the house online last night. The old occupants were still registered there.

"I have made sure I am all registered properly on the house online last night. The old occupants were still registered there."

This is significant.......you are telling lenders that you live at your current address but the electoral roll is telling your credit files that you don't and the previous tenants still do.............there is always a lag between when you move into a property and register on the electoral roll.....to that then being reflected and updated on your credit files.......

In a month or so's time that will get updated and your score should jump up a fair amount.....

[Welshbeef]

Jhonno said:

Unfortunately it is for the missus, she is due to hand her car back on PCP so needs another car.

I was going to use the loan to then buy myself a car when she has squared me up, but I might have to pay it off early with her paying me back, and keep nursing the poor old thing a bit longer as you say, to clear this "noise".

So that’s more financial commitments for you as a couple/linked finances.

As an aside unless you are married I would 100% not be taking out another persons debt in my name, let them take it out in their name and you can fund it if you so wish but doing it this way unless you change the V5 she is the owner and you have the debt ....

[Jhonno]

Sarnie said:

Jhonno said:

Well, I was shocked at being offered a "rubbish" rate.. The guy on the phone said they had a price promise, I probably mistakenly (although the damage was already there apparently), tried my bank for the same loan also, hoping they might offer a better rate as an existing customer.

Mortgage was approved etc.. The house purchase fell through further down the line, so the application cancelled.

I have made sure I am all registered properly on the house online last night. The old occupants were still registered there.

"I have made sure I am all registered properly on the house online last night. The old occupants were still registered there."

This is significant.......you are telling lenders that you live at your current address but the electoral roll is telling your credit files that you don't and the previous tenants still do.............there is always a lag between when you move into a property and register on the electoral roll.....to that then being reflected and updated on your credit files.......

In a month or so's time that will get updated and your score should jump up a fair amount.....

Fair enough.. Bad timing with the move and the car ending it's PCP then.

Will bridge, pay off, and come back later for my own car.