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- Electoral
Roll
If your name is not on it, rejection is almost certain. The roll is updated every October by local councils, but not fully loaded on to credit agency databases until the following April. The banks check personal identities against the roll held at a credit reference agency, but the agencies cannot guarantee to have the full data in place from local authorities until the following April. So someone who moved home in November could wait until May before their credit score improves. - County
Court Judgments
Check your credit files as you may have a CCJ or default. Any more than one in the past year spells a credit rejection, but if it's more than six years old it's not counted. - Past
Credit History
This usually makes up around 35% of your credit score. Maximum points if your payments on existing loans are regular and timely. You score less points if you regularly fall behind on store, credit card and HP agreements. If you have many credit cards this won't count against you as long as payments have been maintained. - Address
Full points if you've been at your address for the last three years, but if you've moved house frequently, most systems will reject you. Your postcode cannot be used as the sole reason for denying you credit, but does have a weighting in your score. - Employer
The longer you have worked with the same employer, the more credit points you earn. People who move jobs regularly are regarded as a poor credit risk, even though they maybe earning a high salary because of job hopping. This is particularly applicable in the IT and Media industries. - Bank
More points if you've been with the same bank for years assuming you've had a problem free relationship. You score more points if your agreed overdraft limit has never been exceeded. Less points if it has. - Salary
If you earn a high salary, you won't necessarily score more points. Salary is always asked for but usually ignored, except for mortgages. As salary is non-verifiable from data held at agencies, what you put down is deemed unreliable. - Related
Parties
The systems will check similar surnames at the same address. If they have poor credit history, your application is likely to be referred. - Number of
Credit Applications
You are regarded as risky if your credit file shows more than six credit applications in recent months, they take no account of whether you have been rejected or accepted. Three to four applications per year is regarded as normal. It's also wise not to respond to a junk mail offer too soon as earlier applicants are more likely to be rejected. Records show early applicants are more likely to default. - Age
Usually not a major factor in the score card, although it can be easier for younger applicants. If you are 45 and have never applied for credit, the systems regard this as suspicious compared to a 25 year old taking out their first credit card.
Check Your Credit File
If you haven't already done so, check your credit files. The two companies that supply 99% of all credit reference requests in the UK are:
Experian Ltd, PO Box 8000, NOTTINGHAM NG1 5GX
Equifax (UK) Ltd, PO Box 3001, GLASGOW G81 2DT
Write to both companies quoting your full forename(s) and surname, with your previous addresses for the last 6 years together with a £2 cheque/postal order made payable to that company. Within 2 weeks you should receive your credit file together with a useful booklet.
You are now able to check your credit files online. If you prefer to use this service click here
Remember, if you are looking for a loan/mortgage, then there are facilities for CCJs/Defaults.
Click here for more information about a secured loan
Click here for more information about an adverse credit remortgage or mortgage
Click here for more information about CCJ removal
