credit rating best you can get but declined credit?

We recently paid to get my Experian credit report and were very pleased to see I have a credit score of 97.1 which is 'excellent'. However, I have just been declined for a credit card from my own bank. We are going to query/appeal but first I wanted to see if anyone can shed any light on why I may have been declined.

We are assuming it is because I'm not on the electoral roll. I have had an excellent salary going into my account for the last several months and have only one late loan payment which we can explain if they queried this (transitioning between jobs). I have recently increased my overdraft so I guess that may count against me? My personal debt is not that large overall.

My bank does use Experian, not Equifax so we have not looked at what they might have to say about me yet.

Ideas?

I'm not on the electoral role and I've got credit cards coming out of my ears (not necissarily a good thing!!  ) Could it be because you don't have much of a credit history?

I built myself up with store accounts -> credit card with my bank -> car loan -> credit card with other banks....

The only other thing would probably be the opposite - I've got a high rating but because I owe too much and have a big overdraft (even though my payment record is fine) no one will give me any more (probably a very good thing. LOL.)

I speak only from second-hand experience, since I haven't been here long enough to get anything, but I would think it was the electoral roll.

When Adam applied for a business loan last summer, he got declined because he wasn't on the electoral roll. They had told him that if it came back as a referral, they'd approve it in branch, but it came back declined with the code saying that was why. His credit's not great, but the bank told him that was the clincher.

I'm not on the electoral role and I've got credit cards coming out of my ears

Same here.  In my experience there doesn't appear to be any rhyme or reason when applications are denied.  When we first arrived here last year (hubby and I are both American), I was approved for an HSBC card and he was denied (we had zero UK credit history at that point).  The kicker is that we're here for his job, and he makes twice what I make.

I'm not on the electoral role and I've got credit cards coming out of my ears (not necissarily a good thing!!  ) Could it be because you don't have much of a credit history?

I built myself up with store accounts -> credit card with my bank -> car loan -> credit card with other banks....

The only other thing would probably be the opposite - I've got a high rating but because I owe too much and have a big overdraft (even though my payment record is fine) no one will give me any more (probably a very good thing. LOL.)

I have over 7 years of history here. I have had small loans and small credit cards from other banks (500 quid for the cards, less than 4000 for a loan), as well as overdrafts. I don't do store cards as the interest rates are too high!

My overall debt to income ratio is not very high.

Any chance I could be linked to my husband (I didn't take his name when we married)? He has a very large loan.

I wouldn't think you'd be linked unless you asked for him to be on the account with you. That's really weird. I've really had an easy time building up credit here. The only other thing I can think of is that it's connected to the recent crack down on consumer borrowing. Two of my credit cards actually lowered my limits last year.

I just went through the mortgage application process and it was way more demanding than any other time I've applied for a loan or a mortgage.  They were really really strict with me.  I have a good salary, good credit and low debt but they made it a condition of the mortgage that I repaid my one and only credit card balance.  

Affordability seems to be the buzz word these days - as in they decide whether you can afford the loan/credit card not whether they believe you'll repay it.  And each lender has their own criteria so there really is no rhyme or reason to it?

The Experian report would show who you are linked to.

Perhaps the bank checks eveyone living at your address, though?

I've lived in the UK my entire life and at a recent bank meeting I was informed I had really good credit (i've put a lot of effort into building it up).  It couldn't help but make me laugh though that my husband who had no financial history whatsoever in the UK was approved for a credit card with the same limit as mine just a few months after entering the country.  

The Experian report would show who you are linked to.

Perhaps the bank checks everyone living at your address, though?

Yes, this does affect your credit score.  I've never dealt with it personally but my fiancé has not-super-great credit and he has told me that when he lived with his ex, it made HER credit score go down as well.  For this reason, he's left his major debt (a credit card) registered to his parent's address so it doesn't negatively effect our current household & me.

I'm pretty sure my report doesn't show his name on it at all.

*sigh*

It's all very frustrating.

Affordability seems to be the buzz word these days - as in they decide whether you can afford the loan/credit card not whether they believe you'll repay it.  And each lender has their own criteria so there really is no rhyme or reason to it?

That is definitely the impression that I'm getting. Barclaycard drastically reduced the limit on my card recently and the letter said something about it not reflecting inability to make payments - that it was to do with the responsible lending scheme or something like that. It irritated me because I wasn't at my limit and had never missed a payment.

Hi,

With the recent 'availibility' of accessing your credit report it makes you think you have a little more control over finances which when required for loans, mortgages etc, gives you the impression you have more of a chance of being accepted. For the 'most' part that is true - except for when you get seemingly inexplicable actions like some of the ones described here in the replies!

However, there are some aspects which aren't so immediately obvious but can and do affect your credit score negatively.

having financial 'links' to someone with a seemingly worse or bad history will impact you quite a bit, in many instances the person with that less than good record will have made various 'attempts' at obtaining credit and been refused. The number of times applied for credit is recorded as well - they 'dont like' people applying for credit here and there as to them it shows lack of discipline with money and hence their lending may be at risk later on so better to refuse it now.
Late payments are something they really 'hate' - it marks you down, even a single missed payment - 2 and you're asking for trouble, 3 late payments and that it - mark down time. The agencies also look at your existing levels of debt and with who they're with - so if you have a mortgage, bank loans and credit card loans here and there you're much riskier than say someone with a couple of credit cards and a mortgage say. If you have Credit cards you dont use, close the accounts, it looks 'better' on your credit report.
Address 'usually' doesn't come into it, as loans and debts are recorded against an individuals name rather than their address. With how fluid movements are the emphasis that used to be placed on address is less so nowadays in terms of your credit report itself. I know many places always say 'at least 3 years at this address' and for this board which deals with people in from abroad thats frustrating - hence the excellent workarounds suggested to start to build credit here when initially arriving here.

On a broader and larger scale - over the last 5-6 years or so, money has literally been given away and thrown at people becuase of it's 'apparent' cheapness. Many people took it up and played right into the UK 'Trait' of keeping up with the jones' etc (thats wy the UK on its own has more credit debt than ALL other European countries COMBINED!) and are now finding it has to be paid back you know! - end result, non and missed payments, more bankruptcies (sp?) and bad credit reports.

It's come to the stage where in order to be able to get what you'd like in life in the UK, the basics or more of the fundamentals are harder to obtain becuase of all the credit problems etc, so many people are 'risking' having a bad credit rating in order to get that mortgage or loan etc just to be able to get a house, then having to scrimp on other aspects to run that household and usually important stuff like insurance (remember the floods of 2007, and how many uninsured there were) is bypassed so that the having a nice car outside or the holiday abroad each year can happen.

I'll stop there on those aspects!

to 'help' as best you can with your credit ratings

1. Pay your bills on time, every time each and every month *VERY important*
2. Dont make too many applications for credit in relatively short spaces of time.
3. Save as much money as you possibly can to help with purchases instead of sticking them on credit.
4. Any credit cards, store cards you dont use - close them

If you want to try and get (for whatever reason) credit and are borderline - carefully analyse the risks of losing your credit rating for while and build it up later in order to get what you need now (tends usually to be large things like mortgages, business loans etc)

There's much more of course but I can't sit here all day - plus probably wouldnt all fit in this reply! but generally the above and the other responses are the deal with credit history/reports etc and I agree, it's extremely frustrating when things happen which dont appear to follow the 'rules' as it were.

Hope the above helps!
Cheers, DtM! West London & Slough UK!

What Dennis said I think is universal (regardless of US or UK).

Having spoken to financial advisors and credit agency people and loan officers at two banks, not being on the electoral roll does seem to be a serious consideration for "reputable" loan companies/banks.

I was informed by Credit Expert, however, that I could put a "note" on my file that would be seen by anyone running a credit check regarding my immigration status and why I don't show up on the roll.  You might want to check into that.