Loans and credit score

[MummyKaya]

Basically I need a loan for £4000. I don't have any ccjs or bad credit but have been declined because my 'score' is not high enough. Can afford to pay back £200 per month. I want to know, how can I improve my credit score? I have no store cards/credit cards etc just a debit account. How can I improve it if no one is willing to give credit? Sorry I'm really new to this and have no idea how it all works! Would be very greatful if someone could shed some light...
Also does anyone know of any loan companies that would be willing to lend in my situation? Or if I got someone to be garrentor? Thank you x

 

[weebubbles]

Hi, I had the same problem as you when I wanted a car loan. I had no loans or credit cards so I was turned down for a loan. My Mum went guarantor with me and I got my loan.
Its stupid the way banks work as my score just now is 999 and I have loads of debt! You would think the less debt you have the more likely the banks will lend you money!
Hopefully you have got someone that can go guarantor with you.

 

[suzib76]

what you need to do is go with one of the extortionate companies that lend to people with a bad/no credit rating and get a credit card with a small limit, spend and pay in full every month - you will not get charged any of their crazy rates if you always pay in full - but be warned it is a very long process building up your rating and tbh if you can afford to pay £200 to a loan monthly the best thing to do would be to start putting that £200 away every month - by the time you have raised your credit score you will also need to borrow less

oh and also leave it a good while before you apply for anything again as the more you apply and get turned down, also affects your score x

 

[MummyKaya]

Thank you ladies. Guess I'll just have to beg someone to be my guarantor, and get a credit card in the mean time. At least its progress if not the quick fix I need. Thanks again for replying

 

[kit603]

When I was refused last year I started looking into ways of improving my credit rating and in the end I got an interest free (for 56 days) credit card from natwest (with a £500 limit) and a mobile phone contract from 02. I pay my mobile phone contract every month with my credit card and also use my credit card for my petrol, and then pay off my credit card in full every month. It's really boosted my credit rating, because on paper i've been paying back 2 forms of credit in full every month for the last 9 months. However, it's still quite low in the grand scheme of things as i've moved twice in last year and i've only been back in employment for 3 months.

Apparantly making sure you're on the electoral register and things like that can improve your score slightly too. Applying for credit (Even if you're refused) lowers your credit score.

 

[Rachel_C]

I don't have much of a credit rating either but I'm slowly building it up by having a mobile phone on contract. I've also got a few store cards which I make sure I pay off in full each month. It's worth getting a store card for anywhere that you shop regularly and using it instead of paying up front. If you set up a direct debit to pay it off, it's no more hassle and will slowly build up your rating. Beware though - I saw something on TV that said if you have UNUSED credit available to you, that doesn't look good on your score. I don't know why that is but that bald man (Dom?!) said to cancel any cards you don't use.

It may also be worth having a look at your actual credit report (do the free trial at Experian but don't forget to cancel it before they charge you) as it's a possibility that there's something wrong on there. I've heard of people checking there's and finding that somebody is committing fraud in their name etc. Also, if you've been married before, you may need to write to the credit agencies and tell them officially, otherwise your name remains linked to your ex's and if he has a bad score, so do you.