[Singh400]

Just got off the phone with Orange, and wanted to get the HTC Hero.

Turns out they refused me (credit check that is – “referred decision”). Thing is, I don’t get why. I don’t have any debts, I don’t have any credit cards or loans etc etc.

It just feels like I’m being penalized for being sensible with my money. I don’t buy anything on credit, I always save up and buy what I want using either cash or Visa Electron.

Guess I should really look into getting a credit card, otherwise life could be very difficult for me in the future...

/Rant over – thanks for listening

[Liquid101]

Originally Posted by Singh400

Turns out they refused me (credit check that is – “referred decision”). Thing is, I don’t get why. I don’t have any debts, I don’t have any credit cards or loans etc etc.

It's because you have no history of credit use. Would you buy a high value item from an ebay user with no feedback?

[unique]

you are asking someone to give you credit with no proof that you can handle credit. the handset is worth maybe £200-300 and you could ring up some big phonebills, so it's a reasonable amount of credit they have to provide to you

if you have been with your bank for a while you should be able to get a credit card from them, use it for a few months to buy things and repay the debt in full and you will build up a credit history. there are other tips on the money saving expert website

with no evidence of credit it might look like you have had bad credit in the past and are hiding your history by not providing any details of the past, especially if you moved rented housing and left behind unpaid bills and started in a new home with no ties to the previous address with the bad debt. normally when you move homes you change address on bills/credit cards etc and they link addresses and these show on your credit score

[dazza1011]

i cant understand how you have gone this long without a credit card.

i can understand wanting to be careful but i buy any large items ( TV, PC's etc ) with a credit card just so i know its insured if anything should happen.

a Visa Electron is OK but not everywhere takes them

[CraigofScotland]

By having a visa electron, are you under 18?? if so this is a downside.

[Alison22uk]

enjoy your minimal penalising now, later in life when you get to old age and need care, if you're careful with your money you will pay out of the nose for it, but if you wasted it away the government will aid you with most of it. Or hide it somewhere they will never know!!

[Toasty]

I know someone who was refused credit and it turned out to be because they weren't on the electoral roll making their home address a bit ambiguous.

[acid007]

I would suggest that you get a credit check/report, they only cost a couple of quid AFAIK. Experian or Equifax are two market leaders, you might find something on there.

You don't neccesarily need a credit card to build up credit history, it obviously helps.

Sid

[wormvortex]

I took out my first phone contract about a week after turning 18 and I had no credit rating or credit card at the time.

[setjellyfish]

Mad init, just get your self a credit card and use it for petrol or something you use regularly and have it pay by direct debit so you don't miss the payment. before you know it you will have people throwing credit at you.

[ldoodle]

Not quite the same but the company I work (multi-million point annual profit) can't get credit either as since 1927 they have always paid outright for stuff

I personally have a modest limit on my credit card and just buy small items with it, but have exceptionally good rating.

[IronGiant]

I have shed loads of debt I can lend you that will boost your credit rating in seconds I'll just send over my £30K and rising mortgage shortfall, that should get you started

Dave

[Singh400]

Originally Posted by Liquid101

It's because you have no history of credit use. Would you buy a high value item from an eBay user with no feedback?

I don’t use eBay, but I see what you are saying.

Originally Posted by dazza1011

I can’t understand how you have gone this long without a credit card :confused

Just never needed one. 99% of retailers accept Visa Electron.

Originally Posted by CraigofScotland

By having a visa electron, are you under 18?? if so this is a downside.

Nope, I’m 21. Had the Electron since I was a moody teenager.

Originally Posted by Toasty

I know someone who was refused credit and it turned out to be because they weren't on the electoral roll making their home address a bit ambiguous.

I’m on the electoral roll for this house. Not sure if it makes any difference but I’ve only been living at this property for around 2 years and 10 months.

Originally Posted by acid007

I would suggest that you get a credit check/report, they only cost a couple of quid AFAIK. Experian or Equifax are two market leaders, you might find something on there.

You don't necessarily need a credit card to build up credit history, it obviously helps.

Sid

I don't think that would help, as I said before I have never had a loan, CC etc etc. So I guess I don't have a score at all.

Originally Posted by setjellyfish

Mad init, just get yourself a credit card and use it for petrol or something you use regularly and have it pay by direct debit so you don't miss the payment. Before you know it you will have people throwing credit at you.

Not a bad idea actually, thanks.

Guess I'll be popping down to Halifax next week...

[CraigofScotland]

Hi mate. Condier a low cost mobile phone contract as an easy way of bumping your rating up.

Also if you drive, pay up your insurance rather than bulk sum


you see what im getting it . . pay monthly on some things. If you live at home and pay dig money offer to pay something on direct debit instead such as phone/inet.

[SeanT]

Originally Posted by CraigofScotland

Hi mate. Condier a low cost mobile phone contract as an easy way of bumping your rating up.

I don't think in these circumstances that's particularly helpful advice! (Singh is unable to get a mobile phone contract due to poor / no credit history, so you tell him to apply for a mobile phone contract!!!)

[Singh400]

Originally Posted by CraigofScotland

Hi mate. Condier a low cost mobile phone contract as an easy way of bumping your rating up.

Did you even read my first post?

Originally Posted by CraigofScotland

If you live at home and pay dig money offer to pay something on direct debit instead such as phone/inet.

I do pay the internet bill via Direct Debit. I thought that would count - but it doesn't!

Originally Posted by SeanT

I don't think in these circumstances that's particularly helpful advice! (Singh is unable to get a mobile phone contract due to poor / no credit history, so you tell him to apply for a mobile phone contract!!!)

Err corrected!

[qwerty321]

What Liquid101 means by the eBay example is you wouldn't buy an expensive item from a brand new user as its risky.

Its kind of the same with you and Orange. To them you are new to credit and it is risky for them to give you a high value phone and contract. You have no record (or "feedback" following the ebay example) of credit use.

I was accepted for a contract with 3 when I was close to 19. Had one student credit card that I had used about 2 times before that.

Took another card out recently (one of the cashback cards) for spending on fuel. However, due to the lack of credit history its a pain. Only got given a £500 limit and I easily use £250 a month. I do pay back the monthly spend in full but Im having to pay extra off mid-month so I can carry on using it.

One thing I would suggest is ask a family member to take out the contract in their name. Meanwhile get a credit card and start building the credit history. Over the 12/18 months you should have built up a decent record.

[kopchoir]

Originally Posted by dazza1011

i cant understand how you have gone this long without a credit card.

How many times have we had this conversation about owning a credit card

Singh Dont get a credit card if there not happy to take your money then more fool them i would try another provider im 28 and dont have a credit card dont have an overdraft either living within your means is not such a bad thing there are people out there that can live without credit and then there are the others who cant live without it

Kop

[Steve_P]

Originally Posted by kopchoir

How many times have we had this conversation about owning a credit card

Singh Dont get a credit card if there not happy to take your money then more fool them i would try another provider im 28 and dont have a credit card dont have an overdraft either living within your means is not such a bad thing there are people out there that can live without credit and then there are the others who cant live without it

Kop

To own a credit card doesn't mean you have to abuse it... I have a credit card and hardly use it. When I do, I make sure that it is paid off in full by the end of the month. I was 29 when I got my first credit card. I am also a great believer of 'living within one's means', however I also appreciate the benefits of owning a credit card such as insurance on large purchases and greater flexibility in my budgeting.

From your post I get the feeling that you automatically judge a person to be a mindless overspending shop-a-holic simply because they have a credit card. Not always the case.

S.

[clockworks]

I got turned down for a mobile phone contract a few years ago, despite having 30 years of excellent credit history, no debts, mortgage paid, plenty of savings and being on the electoral roll.

The problem was that my house didn't show up on their postcode database.
Very odd, because it's been there for 150 years.
Turned out to be the District Council's fault. They take my Council Tax, empty my bins, etc., but they didn't have my address registered! Took 6 months to convince the relevant department that my house existed.

[acid007]

Originally Posted by Singh400

I don't think that would help, as I said before I have never had a loan, CC etc etc. So I guess I don't have a score at all.

I think you miss the point, everyone has a credit score! - yours is obviously unfavourable. Nevertheless it is a score for the companies to base your credit assessment on.

What i was trying to say is that you might have an erroneous file on your Credit reference, if this is the case you need to get this removed as this has a negative impact on your rating. These are not too uncommon, i know a number of people who have suffered this very problem including myself.

This could be anything and everything, it might probably have nothing to do with you! i.e someone else is the contributor!. if this is the case then it is upto you to prove as to get it removed.

Most companies will use a credit reference agency to see if you are good business or not.

The simplist way to find out if you have a problem is to apply for a credit card funnily enough. (preferably not with the bank you are with) They will apply for a credit check if anything shows up they will refuse you straight, if they do that you know you have a problem!.
Then i would strongly advise you to get a credit report from one of the aforementioned companies.

offcourse it could be nothing to do with the above, in which case you need to build up a credit history.

[krish]

a credit card is a very sensible thing to have for people who are sensible with money - use on all your normal expenses, DON'T USE FOR CASH ADVANCES (either by ATM withdrawl, or those crafty credit card cheques), pay off monthly bill in full, added security/insurance, no compromising of your bank balance if fraud occurs .... + benefits of interest free period, convenience and cash rewards

for people who don't believe in saving for non-essentials or living within their means, it is not a very sensible thing to have

anyone who pays by debit card most of the time, yet claims they are very sensible with their money, in my view isn't being that sensible since they are risking their bank balance all the time (yes, it'll be reimbursed eventually, but you'll also definitely be up poo creek for a short while)

[dUnKle]

My current Credit Card (with egg) should allow me to have a credit limit of around 10 grand (in fact it may now be more, not checked for ages)

However I actually requested it not be any more than there minimum which is £500 - that way I can not run up huge debts on it and also shoudl anyone get hold of my details there is not so much there for them to mess around with

Online purchased are "safer" with it and I ensure I pay the full balance by direct debit each month. Have done this for ages and have, what I understand to be, a very good credit rating

When my other half and I first enquired into getting a house it was nigh on impossible for her as she had had no credit card, no hp agreements, no bills etc and thus no positive credit rating (The analogy given at time was very similar to that of the ebay thing and think thats a good way to look at it)

So she got herself a credit card, set up a direct debit and used it for petrol and the like (purchases she HAD to make but now paid for in a different way)

When we came to getting mortgage 3 years back credit rating was no longer an issue

Other things to bear in mind is "bad credit" at an address, lad at college was refused loads due to the previous owners of the house his parents moved into having terrible credit and ccjs

[krish]

btw Singh, I've had credit cards since I was 18, first one a Lloyds Bank Access Card (= Mastercard), associated with my student account and with a £250 limit I think
- have never ever got into debt with them, paying off in full every month
- all my cards (just have two an AMEX and a Visa; both on high limits that I never ever ever get anywhere close to) are cash-reward cards, so always get a few quid back annually, which is very nice considering I use them for all normal personal expenditure as well as work expenses (flights, hotels etc) which are usually reimbursed before my bills are due
- made money (in interest) over recent years with card-tarting, though stopped when they all introduced BT fees; I don't really bother anymore with those "0% on purchases for X months" cards
- on the three separate ocassions when fraud occured (once due to DVD Pacific being hacked; a couple of times due to theft of post by Royal Mail workers), the suspect transactions were frozen pending investigation, then subsequently expunged and cards reissued with new numbers

[kopchoir]

Originally Posted by Steve_P

To own a credit card doesn't mean you have to abuse it... I have a credit card and hardly use it. When I do, I make sure that it is paid off in full by the end of the month. I was 29 when I got my first credit card. I am also a great believer of 'living within one's means', however I also appreciate the benefits of owning a credit card such as insurance on large purchases and greater flexibility in my budgeting.

From your post I get the feeling that you automatically judge a person to be a mindless overspending shop-a-holic simply because they have a credit card. Not always the case.

S.

Oh i know that having a CC is beneficial to some and i have found the majority in here when a CC thread comes up are very sensible when using a credit card and im not in the slightest having a dig at them either.
And if my post seemed that way it didnt mean to be if Singh can happily manage without a CC then good for him.

But there is a reason why the country and the inhabitants are in creek because of the amount of debt people have.

I was a young man once and fell into the CC trap and vowed never to do it again i get by very well on cash and debit card transactions,i am sensible enough now to have a CC im an old man and i have been thinking of getting one to book a holiday my bank send me one every 2 years i cut them up and return them.

Having a CC for me could be beneficial but i have gone so long managing my money without having one so just choose to carry on that way.

Kop

[KelvinS1965]

I think that being careful with your money has only recently become fashionable for a lot of people. Having got myself into debt when I was younger buying a car on a loan that was really beyond my means. I managed to clear the debt and resultant CC debt caused by lack of cash to buy everyday items, but only by selling the car and buy a cheap old banger again. Since then I've stuck to the principle of not having something unless I can afford to buy it outright (even interest free credit items means I have to have money already in the bank to cover it). The only exception being a mortgage, but even then I've stuck well inside my comfort zone.

I think some people think it's a bit 'quaint' or just plain old fashioned, but I was out of work a few years ago and it took 3 months to get another job. I could have stayed off for a year, living off my savings if I'd had to, so I was glad to have lived well inside my means. I could have bought a bigger house and had a larger mortgage, but I'd then maybe I'd be struggling with the repayments and it's not like I have a rubbish house, it's just taken a lot of years of DIY (and saving in between projects) to get it really nice now.

However, I do have two credit cards (one used for work stuff that is covered by my expenses), but they are both paid in full by direct debit every month. Since I got the cards, the limit has slowly crept up and up without me even asking, so it's true that they will start to 'throw' credit at you once you use the card. I know they don't make money out of me from interest, but they still make it on the transaction fees they charge the shops, etc so it's still good for them. If you've managed to be careful with your money uptil now I don't see why you couldn't use a credit card sensibly too and that would give you some credit rating....just don't let it take over.

We've just had some quotes for doing the kitchen and they came in higher than I expected (used to doing everything myself so no real idea of costs ). They couldn't seem to understand why I wouldn't go ahead as I didn't want to borrow any money to pay for the extra (or rather I didn't want to completely wipe out my savings, just incase the worst happens - again). Trying to convince me to 'have it all now' and borrow a bit, rather than my version which is to wait a little longer while I save up the shortfall and sod if the prices do go up a bit, it's still probably less than the cost of interest. In fact I'll probably end up doing myself anyway leaving more cash for some 'boys toys' and I'd certainly never dream of borrowing for any of those luxuries.

[Steve_P]

Originally Posted by kopchoir

Oh i know that having a CC is beneficial to some and i have found the majority in here when a CC thread comes up are very sensible when using a credit card and im not in the slightest having a dig at them either.
And if my post seemed that way it didnt mean to be if Singh can happily manage without a CC then good for him.

But there is a reason why the country and the inhabitants are in creek because of the amount of debt people have.

I was a young man once and fell into the CC trap and vowed never to do it again i get by very well on cash and debit card transactions,i am sensible enough now to have a CC im an old man and i have been thinking of getting one to book a holiday my bank send me one every 2 years i cut them up and return them.

Having a CC for me could be beneficial but i have gone so long managing my money without having one so just choose to carry on that way.

Kop

Ah ha! my mistake then. Yes I do agree with you... the 'public' do tend to be the stupid majority. Sorry I misunderstood your post. On a connected note, I had to use my credit card yesterday for a small purchase as my c/card issuer wrote to me saying they were going to close my account because I didn't use the card enough (no transactions in 12months). So I guess we are very similar in our outlook on credit.

S.

[Singh400]

Just got back from the bank - good news

Applied for a credit card, and got refused. Because I don't have a credit score.

The dude then suggested I apply for a debit card (as previously mentioned I already have Visa Electron which he said was basically). So I applied for debit card, and I was accepted.

And then "off the back" of that I was offered a credit card - to my surprise and the dude's surprise. He says he has never seen that happen.

So I've now come back from the bank with a credit card and debit card. Now I can start building up my credit score

Bloody hoops you have to jump through

And for the record, he said the exact same thing. I was being penalized because I was being good with my money

Thanks to everyone who replied and listened to me moaning

[krish]

Originally Posted by Singh400

Now I can start building up my credit score

you know it's not really something you need to be concerned about (I never have, even when getting a mortgage), just carry on as normal until some beancounter feels they have to draw your attention to it

[Arther]

Originally Posted by dazza1011

i cant understand how you have gone this long without a credit card.

i can understand wanting to be careful but i buy any large items ( TV, PC's etc ) with a credit card just so i know its insured if anything should happen.

a Visa Electron is OK but not everywhere takes them

I don't have a credit card (I'm 27), still have a debit card with cahoot and they cover me for any naughtiness with various companies (had a few instances of that) and then my consumer rights cover me for all the rest. Not hard to live without a credit card and I know a couple who have never had any kinds of cards....they just pay with cash or cheque.