Credit Checks

  laurie53 16:50 17 Apr 2008
Locked

I recently signed a credit agreement, but because I have no recent credit history (obviously £90K + on the house doesn't count!) it was not accepted and I have to produce my driving licence and a utility bill. Photocopies not accepted.

Like, I suspect, many people, I no longer get utility bills. I get billed on line and I pay online. Printing off a bill counts as a photocopy.

Anybody else had this problem and how did you solve it?

  Diemmess 17:15 17 Apr 2008

Your Council Tax bill?

  Forum Editor 18:02 17 Apr 2008

is recent credit history, and if you think about it there's sense in it. Owning a house isn't proof that you're creditworthy, and neither is having money in the bank, or earning a big salary - what counts is evidence of your ability to handle debt responsibly. I know it's irritating, but that's the way the business works. Obtain credit and repay promptly and you will be offered more credit.

The utility bill problem is becoming more common because of online account management, as you say, but a community charge demand is an acceptable alternative.

  carver 18:30 17 Apr 2008

Several years ago all I had was a debit card, paid for ever thing with that until I had a chat with my bank manager.

She explained that I had to have 2 credit cards with different firms and use them every month, even if it was only for £10.

The reason was to get a good credit rating because up to then my credit rating was zero, because I had no mortgage, didn't owe anybody a penny and paid ever thing on time either with cash or debit card.

Stupid world isn't it.

  Sheepish 18:52 17 Apr 2008

Was the request for you to produce driving licence and utility bill to do with your credit rating or just standard legal requirement to provide proof of identity?

  laurie53 19:58 17 Apr 2008

Credit rating I would think.

I have been dealing with this company for ten years, and they have contacted me both at work and at home, so they know who I am.

  laurie53 20:05 17 Apr 2008

While I do get a Council Tax Bill, like everybody else, once it's been dealt with it gets scanned to "My Documents" and shredded, like bank statements and all the other sundry bits of domestic paperwork.

Incidentally FE, I would have thought that having two credit cards with no outstanding balances would be a better indication of my ability to handle debt responsibly than a driving licence and a gas bill!

  belfman 21:22 17 Apr 2008

I believe this to be more about having documented evidence of your Identity and Residence rather than being declined for credit. Once you supply this they will process your application and you will be passed or declined with the relevant agency.

  Forum Editor 22:14 17 Apr 2008

Provided you regularly use those two cards, yes.

If you don't, you'll not have as good a credit rating as you would if you used the cards often, and paid the balance when due. It might sound odd, but it's the way it works.

Belfman's probably right - the documents are to verify you are who you say you are, and that you live where you say you do.

  laurie53 08:53 18 Apr 2008

I have bought three cars from this company, including two part exchanges so they've had two log books.

They've also delivered and collected from my address (of the last 17 years), so if they should know who I am and where I live by now!

I think it's just the usual case of having to tick certain boxes, without having any real understanding of what the end result is supposed to be, and without any flexibility or discretion allowed.

  Jim Thing 10:49 18 Apr 2008

...regarding the apparently mindless ticking of boxes.

Some years ago we sold our bungalow and bought a retirement apartment in a town about ten miles away. When everything had been completed I transferred my bank accounts from the branch that had held them for the previous nine years to another branch of the same bank ten miles up the road — where I was required to produce recent utility bills, etc. as proof that I was indeed who I claimed to be.

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