Cannot get credit

[Lucky4Seven]

I am concerned as to why I cannot seem to get any credit.

I have looked at my credit report with Experian and my score is very low at 314.

I have applied for some credit, I am initially accepted for credit, but when they do a credit search with Experian I am immediately declined.

I have a good income of £1000 a month, I have no outlay ie no mortgage and no bills to pay.

The only black mark on my credit file is a default which was issued on the 12th June 2018.

I have objected to the company over the default because I felt the default was unfair because of the account being on hold at the time it was issued.

I have put a Notice of Correction on at the CRA's saying that the account was on hold at the time as I had lost my disability benefit when it was under review.

I have 2 accounts with Capital One, which does have some late repayments, but both are showing as partially settled and both closed on the 19th September 2018.

The ast being Vanquis Bank, some late repayments but paid in full and closed on the 6th June 2016.

I cannot understand why I get initially accepted for credit then declined after a credit check.

Any pointers on how to improve my credit rating and how to find out why I'm being declined!?

[Amethyst]

Your default is quite recent and your only other credit shows late payment and then partial settlement and are also just over a year old. They will all stay on your credit file until mid 2024.

As they get older the impact of them may reduce. Why was the defaulted account put on hold ? What was the complaint and resolution ?


£1000 a month isn't necessarily classed as a good income either - it leaves little leeway for emergencies.

Not having a mortgage etc can also work against you as it also means you have no assets.



Making numerous declined applications will also reduce your scoring.

Are there any linked financial connections on your credit file ? Any joint accounts etc as that can affect your file if the association has an issue on their credit file.


Is there a specific reason you are wanting credit ? ... one way to build your credit rating up is to have a credit card where you spend say £50 on it each month and pay the balance off in full each month - so it stays at a zero balance but shows spending and full payments. You may be able to get a bad credit credit card to do that with but be very strict on paying it off each month - interest rates are high and if you fail to pay it it can run away with you very quickly.

[Lucky4Seven]

Your default is quite recent and your only other credit shows late payment and then partial settlement and are also just over a year old. They will all stay on your credit file until mid 2024.

As they get older the impact of them may reduce. Why was the defaulted account put on hold ? What was the complaint and resolution ?


£1000 a month isn't necessarily classed as a good income either - it leaves little leeway for emergencies.

Not having a mortgage etc can also work against you as it also means you have no assets.



Making numerous declined applications will also reduce your scoring.

Are there any linked financial connections on your credit file ? Any joint accounts etc as that can affect your file if the association has an issue on their credit file.


Is there a specific reason you are wanting credit ? ... one way to build your credit rating up is to have a credit card where you spend say £50 on it each month and pay the balance off in full each month - so it stays at a zero balance but shows spending and full payments. You may be able to get a bad credit credit card to do that with but be very strict on paying it off each month - interest rates are high and if you fail to pay it it can run away with you very quickly.

I have no links to anyone else its all in my name.

The Vanquis Bank was closed way back in 2016, so that one is 3 years old.

The company has refused my request to remove the default, they were aware at the time of default that I was in financial difficulty as I had lost my disability benefit, I showed plenty of evidence to back this up but they just stubbornly refuse to remove default.

However, I am now in a position to make full payment will this remove the default!?

[Amethyst]

No but the default would be marked as satisfied which may reduce the impact of it quicker than an outstanding debt default. It will still show on the file as defaulted but satisfied/settled until mid 2024. Your credit file will also show that you have no outstanding debts ( as the others are also marked as settled/ps)

The credit file has to reflect the true situation - Regardless of the reasons for not paying the debt as per the terms of the account, the agreement was breached and the account defaulted.

[Lucky4Seven]

No but the default would be marked as satisfied which may reduce the impact of it quicker than an outstanding debt default. It will still show on the file as defaulted but satisfied/settled until mid 2024. Your credit file will also show that you have no outstanding debts ( as the others are also marked as settled/ps)

The credit file has to reflect the true situation - Regardless of the reasons for not paying the debt as per the terms of the account, the agreement was breached and the account defaulted.

So what else do you reckon is impacting my credit rating with only just 1 default!?

The default is only 1 year and 3 months old!?

Is it worth asking Experian directly!?

There are a few searches, but quite a lot of the are due to come off towards the end of this year.

[Amethyst]

The default and late payment markers, and your low income, are likely the cause of applications being declined. A default can be as bad as a CCJ, and unpaid defaults, even for £20, could stop someone obtaining a mortgage or passing a credit check to rent a property etc, as the purpose of the credit file is to show prospective lenders how good ( or bad ) an applicant is at managing their debts and thus how likely they are going to actually make the required payments.

[Lucky4Seven]

The default and late payment markers, and your low income, are likely the cause of applications being declined. A default can be as bad as a CCJ, and unpaid defaults, even for £20, could stop someone obtaining a mortgage or passing a credit check to rent a property etc, as the purpose of the credit file is to show prospective lenders how good ( or bad ) an applicant is at managing their debts and thus how likely they are going to actually make the required payments.

Is it actually worth paying the outanding debt to get the default placed as satisfied!?

[Amethyst]

IMO yes, even Partially settled is an improvement to outstanding. I settled all my defaults off and though my credit file is still pretty dire and the defaults still show ( just as closed/settled accounts), it improved enough within a year to enable me to get a mortgage with a high street bank, so it's not impossible. It really depends what your aim is. There's never a single factor, income, outgoings, employment status, defaults,searches, linked associations all come into play and each lender has different criteria.

[Lucky4Seven]

IMO yes, even Partially settled is an improvement to outstanding. I settled all my defaults off and though my credit file is still pretty dire and the defaults still show ( just as closed/settled accounts), it improved enough within a year to enable me to get a mortgage with a high street bank, so it's not impossible. It really depends what your aim is. There's never a single factor, income, outgoings, employment status, defaults,searches, linked associations all come into play and each lender has different criteria.

I did apply to Lloyds Bank recently for a credit card.

I was initially accepted for a credit limit of £500, yet when they went to perform a credit check I was then declined.

So something isn't right, but I will pay of the debt as I'm due some money coming through hopefuly my score will improve, plus I've got lots of searches due to come off which will also help xx