Declined for credit
- Thread starter thebennyboy
- Start date
Unfortunately you can't be distinguished between people who opted to have a low current credit limit versus someone who has one not out of choice. You don't want to be the one lender who offers an non-creditworthy person a high limit.
You have to understand that lenders aren't omniscient. They can only see groups of similar people and assess their credit worthiness as a group.
This alone won't massively affect your credit worthiness, and the weight different lenders/CRAs put on this varies.
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I missed a payment one time as I stupidly didn't have a minimum direct debit on it.
Paid off in full a couple of days later
That actually may benefit me (perhaps) as it was pure profit for the lender.
As said, if you pay off in full each month they don't make much
Worse, like I do, try to have a 0pc deal all the time. If it has 20 months and I've paid 1k for an item I'll schedule the balance to be paid off in 18. They probably loose out here even considering the initial charge to the retailer the purchase was made at it works out to be a free loan at their expense
I always have 2 cash back credit cards (one Amex and one not) that get paid off in full every month
And sometimes one for a big spend (car, TV, lens) that is 0pc
I'll cancel the 0pc one when finished
This shows I can manage credit well, (limit of 10k and monthly spend of usually less than 10pc)
But shows that I don't make lenders much money paying off in full
I'm no risk, but no reward
Paid off in full a couple of days later
That actually may benefit me (perhaps) as it was pure profit for the lender.
As said, if you pay off in full each month they don't make much
Worse, like I do, try to have a 0pc deal all the time. If it has 20 months and I've paid 1k for an item I'll schedule the balance to be paid off in 18. They probably loose out here even considering the initial charge to the retailer the purchase was made at it works out to be a free loan at their expense
I always have 2 cash back credit cards (one Amex and one not) that get paid off in full every month
And sometimes one for a big spend (car, TV, lens) that is 0pc
I'll cancel the 0pc one when finished
This shows I can manage credit well, (limit of 10k and monthly spend of usually less than 10pc)
But shows that I don't make lenders much money paying off in full
I'm no risk, but no reward
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Man of Honour
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- 1 Aug 2004
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- Tyneside
I've been declined once. I soon clicked why when a letter landed for me for the voters list. I wasn't on it at the time which is a big no for credit apparently.
Lenders want to see:
Electoral roll presence
Reasonable amount of available credit
Utilised credit being <50% of available
No late payments
No defaults
If you tick those boxes you will have a high credit score, stupidly if you have £20k available credit and £10k taken up you will likely score higher than someone who has a £5k limit and £0 used but they all use different criteria etc.
Electoral roll presence
Reasonable amount of available credit
Utilised credit being <50% of available
No late payments
No defaults
If you tick those boxes you will have a high credit score, stupidly if you have £20k available credit and £10k taken up you will likely score higher than someone who has a £5k limit and £0 used but they all use different criteria etc.
Associate
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- 8 Sep 2014
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- 188
Lenders may not want to see that. A lot of lenders will want to see that they can make money from you. The odd late payment might lower your credit score but it will increase their profitability. It obviously depends what you are applying for and with who but it is always a balance between what they view as your potential risk and how much profit they can potentially make from you.
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This is mostly rubbish.
Soldato
- Joined
- 20 Oct 2005
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- 5,946
Never had a credit problem and haven't been on electoral list for years up until recently. Have 3 credit cards and a loan etc.
There a three major credit reference companies in the UK, depending on your previous dealing with them your score will be different with each one. My score for two of the companies is great, I've had mobile phones, loans, credit cards, store cards and bills checked against them, but there's one where I can barely get any credit.
Unless you know which credit reference company the the company uses, it's more often that I pass, as that third party company is rarely used. But on those rare times, I do fail the credit check.
Santander has refused to give me an intreast free credit card for the last two years, I suspect it's because my address don't appear on their postcode system or that they use THAT third party credit reference company as I have managed to get a 7k interest free credit card last year when they refused me, and 10k credit card this year straight after; of course from different companies.
Unless you know which credit reference company the the company uses, it's more often that I pass, as that third party company is rarely used. But on those rare times, I do fail the credit check.
Santander has refused to give me an intreast free credit card for the last two years, I suspect it's because my address don't appear on their postcode system or that they use THAT third party credit reference company as I have managed to get a 7k interest free credit card last year when they refused me, and 10k credit card this year straight after; of course from different companies.
Credit card companies will not look favorably on missed payments. I would imagine it's more about total available credit and outstanding balance.
get an AMEX if you're paying off in full each month - I didn't initially set up a direct debit, missed a payment and they didn't seem to care - no charge for paying it late, card still functioned as normal. They don't have set credit limits either - or at least they won't tell you your credit limit... so long as you carry on paying off in full each month they're happy
My Amex has a limit
You are confusing a credit card and a charge card.
I was talking about a charge card, though there is no confusion from me as to which is which.
My Amex has a limit
You are confusing a credit card and a charge card.
Mine absolutely has a limit
It wasn't the Amex I was late with
I won't ever get rid of my Amex if customer service stays like it is
They are leaps and bounds better than any other financial institution I've had dealings with
I knew you were talking about a charge card, as I know about the product. To most other people your post seemed to basically say "Get an Amex, no limit" and that would be confusing as the entire thread is about credit, which a charge card doesn't offer.
My Amex has a limit
You are confusing a credit card and a charge card.
Mine absolutely has a limit
It wasn't the Amex I was late with
I won't ever get rid of my Amex if customer service stays like it is
They are leaps and bounds better than any other financial institution I've had dealings with
Details.
I lost my wallet and cancelled all my cards
I think santander and Halifax and Tesco were all 5 days plus
Amex was next day replacement
Further when I had an out of the blue purchase for some girly items they questioned it immediately over the phone and then it was cleared. This has taken more than a day with others
And Halifax. I won't go into the worry and stress they caused me last year!
The difference is that with the credit card you pay no interest if you pay it off every month, so it is sensible to put it on credit card as you can earn interest on the money you would otherwise have spent up front.
A personal finance loan on the other hand you will be paying far more in interest that you would earn on cash savings.
Soldato
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Why? Are you gonna say with a straight face that the people with the highest credit ratings are those that banks make absolutely no money from? Really?