Credit Crunch affecting Credit Rating?

Discussion in 'Finance, Property, Law' started by patchemup, Jul 30, 2008.

Welcome to the Army Rumour Service, ARRSE

The UK's largest and busiest UNofficial military website.

The heart of the site is the forum area, including:

  1. Trying to get finance for a new car and have been told that whilst my credit rating was improving due to sorting out my debts the credit crunch has pushed down my credit rating to where it was a few years ago.

    Has this happened to anyone else or is this just a line to fob me off?
    Does anyone know of getting round this-apart from not getting in debt or paying it off!!

  2. By a ten year old car for a reasonable price and don't spend money you haven't got. Never a victim to credit then.
  3. snap just gone through that i dnt owe any thing except for the house paid the plastic off when I left so no debts went to buy a new car the other week and was told to go away low credit rating gob smaked was i. When I asked the chap said as i had no history of credit for the last five years i could not get credit as i was due to the credit crunch. Bloody strange I would not mind if i was in debt up to my eyes.
  4. That's the way it goes and I have written elsewhere that, in order to maintain a good credit rating, you should maintain and pay off, in full each month, a credit card. Yes, it is a strange way of doing things but that is the way of the world.

    BTW... no debts... very lucky man!

  5. Great. You're in debt, you can't get credit, and now they want £15 to tell you why.
  6. Ive just got mine, the score has gone down, but more better credit :(
  7. My bank manager told me all I needed to know about my credit rating. This was at a routine review of my account where I wasn't asking for a loan or credit of any kind, and cost me nothing.
  8. If you have no debt, no credit cards and no personal loans then you don't have "history" and are therefore somewhat of an unknown entity to these people, strange world!
  9. Many finance companies maintain a scorecard which requires various pieces of information like job, salary,time with employer and address amongst others. Each of these things are scored and along with a check on your credit history help determine if you get credit. These various factors can increase and decrease in importance depending on outside factors like the "credit crunch".
    You can get hold of your credit report for £2,which you can apply for online and will receive in the post. It is good to get hold of this because as surprising as it may seem (sarcasm) finance companies can be absolutely shit at updating peoples files especially if you have been in debt.
  10. There's an advertising campaign on the box at the moment which offers a free credit reference service at Equifax (one of the biggest) for 30 days. You could try it and immediately cancel.

  11. It's annoying. My plastic was always cleared each month and my borrowning limit hardly went up. Then at a time when my plastic was a couple of grand (close to the borrowing limit) and I was paying £300-500 each month thus keeping it at the £2k level they put my limit up regularly! It's now £12,600 and I don't want it FFS.

    I agree with other poster, buy second hand. Maybe a year old.
  12. The same has just happened to me.

    Applied to re finance an existing loan and got f...ed right off.

    I have a mortgage with the same bank and have been with them for 12 years.

    They blamed this 'Credit Crunch'

  13. In the first instance, you were a good customer but not a great customer (because you weren't generating any profit for the bank).

    In the second instance, you are now a great customer - and we all want to encourage great customers, don't we?

    Miss a payment and see how things change.....?

    Only joking... don't do anything to ruin that credit rating!

  14. Credit scoring is a weird thing.

    There are two sides to this. The other is that the supply of money has dried up.

    In the past, Banks thoughts they could make loads of loans because they were not on their balance sheets - only they were wrong (and stupid). they cannot now afford to make loads of loans as their balance sheets are fcuked.

    So if you previously wanted to make loads of loans (ie increase supply) you dropped the price or some other barrier. If you want to turn the supply off and make less loans, you either put the price up (which they've done) or you increase your restrictions and lending criteria.

    Great isnt it. Bankers = Tossers.

    The Credit Crunch is actually the name for a 1960's financial crisis. This one should be called the 'Banking Tossers Gave out too much Cheap Money and Debt and got Nailed' Crisis.