Credit Rating Rant Watch

cpj1987
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#1
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#1
I've just been to try and open myself a student bank account with Lloyds TSB (am currently with First Direct), and my application was rejected due to, as the woman in the bank so kindly put it, a 'rubbish credit rating'.
I'm now at home feeling stressed and annoyed, since I can't work out why I'd have a bad credit rating at all. Does anyone have any ideas why I would have? I've never had a credit card, or bought anything on credit. Since I started using financial services, it's just been me and my little bank accounts, which I've never been in any serious mess with beyond a few charges for going overdrawn.
The woman at Lloyds has suggested getting hold of my credit rating and seeing what it says about me, but this'll apparently cost me £25; I resent paying that to find out private information held about me. I guess it's my only option though, since I don't have a clue why I'd have a bad credit rating.
Is anyone else in a similar position, or can anyone explain why my credit rating is too low to open a bank account?
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the_fredster_001
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#2
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#2
Do first direct offer a student account? Banks like to keep hold of people so will probs offer you it if they do.
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Spotty Dog
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#3
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To start off with, it won't cost you £25.

Experian do a month free, which is good if you just want to track it right now, and then £6.99/month, which is good if you want to keep a long-term eye on things.

We are in the middle of a credit slum; Banks won't lend to banks, so banks won't lend to us. If you don't have a good credit rating, you're knackered - And no credit rating counts as a bad credit rating, unfortunatly.

I'm in the same boat; I missed two payments on a higher purchase, and now can't get a student bank account - I'm sticking with my bank, which offer me a good enough deal really.
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evil groove
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#4
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I would suggest that your credit rating is bad particularly due to having been overdrawn in the past. This was a bad thing to do and it was also unwise to have underestimated the extent to which borrowing a bank's money without permission would effect your record.

It may also be not that great becuase you've never had a credit card, which would demonstrate an ability to sensibly borrow money and then pay it off in full and on time each month.
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cpj1987
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#5
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#5
(Original post by the_fredster_001)
Do first direct offer a student account? Banks like to keep hold of people so will probs offer you it if they do.
No, they don't. I'm going into my third year in September, and never bothered getting a student account before as I was happy with the service at First Direct and they didn't offer one. I've just reached the point, what with my third year dissertation and the need to find somewhere to live once I graduate, where a student account would be a massive help to me, so I was intending to swap banks completely to get one...
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cpj1987
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#6
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(Original post by Spotty Dog)
To start off with, it won't cost you £25.

Experian do a month free, which is good if you just want to track it right now, and then £6.99/month, which is good if you want to keep a long-term eye on things.

We are in the middle of a credit slum; Banks won't lend to banks, so banks won't lend to us. If you don't have a good credit rating, you're knackered - And no credit rating counts as a bad credit rating, unfortunatly.

I'm in the same boat; I missed two payments on a higher purchase, and now can't get a student bank account - I'm sticking with my bank, which offer me a good enough deal really.
I did just apply to the Experian one, I'm waiting for a PIN back to find that one out. However, the woman in Lloyds also told me that I need to get information from Equifax and from CallCredit?
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Spotty Dog
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#7
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(Original post by cpj1987)
I did just apply to the Experian one, I'm waiting for a PIN back to find that one out. However, the woman in Lloyds also told me that I need to get information from Equifax and from CallCredit?
Nope. That's nonsense.
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Swayum
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#8
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It's almost certainly due to being charged for being overdrawn. Someone I know had a poor rating because of being charged for another, similar, reason.
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cpj1987
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#9
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(Original post by Spotty Dog)
Nope. That's nonsense.
Really? That's great then!
Means I can see what's going on as soon as my PIN arrives. I did wonder why three different companies would have to hold information about me...
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Quady
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#10
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#10
OK so youve not taken out loans or credit cards
so you havent shown credit worthyness (no history of good repayment history)
but you've gone OD
not a good combo
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cpj1987
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#11
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#11
Meh, I never realised that going overdrawn a couple of times would cause such chaos. Now I'm stressing a lot about any future financial things I might need. How would I get the rating back up? Is my only option to use a credit card and pay it all off again instantly?
I really hoped I'd never have to use one of those...
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Aconite
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#12
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#12
The whole system is a *****, isn't it? I KNOW I've got a perfect credit rating - never borrowed, never been overdrawn - and I was refused a credit card yesterday on the grounds that "I haven't got a credit rating".
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Juno
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#13
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(Original post by Spotty Dog)
Nope. That's nonsense.
No, it's not nonsense. Some lenders will only send information to one of the credit reference agencies, so for the full picture you need to get reports from all 3.

But you can get a credit report for £2 anyway

:juno:
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cpj1987
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#14
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(Original post by Aconite)
The whole system is a *****, isn't it? I KNOW I've got a perfect credit rating - never borrowed, never been overdrawn - and I was refused a credit card yesterday on the grounds that "I haven't got a credit rating".
Agreed. It seems absolutely ridiculous that the only way I can get any kind of financial service in the future is to get myself into debt first, and then get myself out of it again to prove I can do it.
If I'd never gotten into debt, I wouldn't have a rating at all, and now that I have, a tiny bit in the past, I've got a rubbish rating.
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Aconite
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#15
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(Original post by cpj1987)
Agreed. It seems absolutely ridiculous that the only way I can get any kind of financial service in the future is to get myself into debt first, and then get myself out of it again to prove I can do it.
If I'd never gotten into debt, I wouldn't have a rating at all, and now that I have, a tiny bit in the past, I've got a rubbish rating.
That was pretty much what I said to the woman in the bank. It just seems wrong that I should have to create a history - by borrowing THEIR MONEY - to be able to have a tiny bit of credit. She said that they were cracking down on lending and the fact that I'm 19 meant I was 'suspicious'.

I was carrying a bag marked "Loot" at the time, but she could have given me the benefit of the doubt.
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Quady
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#16
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#16
Yea its a silly system, give loans to people whocant afford them, don't give them to people who havent needed them before
just need to play the system, thats how I ended up with a platinum barclaycard before the end of my first year and amex trying to sign me up to their platium charge card...
idiots!
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Becky7337
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#17
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#17
(Original post by Aconite)
The whole system is a *****, isn't it? I KNOW I've got a perfect credit rating - never borrowed, never been overdrawn - and I was refused a credit card yesterday on the grounds that "I haven't got a credit rating".
Same with me. I've never been overdrawn, don't have a credit card never owned a store card so I don't have a credit rating so Halifax refused to give me a student account.

Left me feeling severely annoyed.
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evil groove
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#18
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(Original post by Aconite)
That was pretty much what I said to the woman in the bank. It just seems wrong that I should have to create a history - by borrowing THEIR MONEY - to be able to have a tiny bit of credit. She said that they were cracking down on lending and the fact that I'm 19 meant I was 'suspicious'.

I was carrying a bag marked "Loot" at the time, but she could have given me the benefit of the doubt.
She called you suspicious- are you serious?! :eek:
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Swayum
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#19
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#19
So how long does it take to develop a credit rating? I don't suppose one month is sufficient?
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Aconite
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#20
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#20
(Original post by evil groove)
She called you suspicious- are you serious?! :eek:
She did, yeah. I'd also like to point out that I'm about as threatening as a Donny Osmond song.
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