James
I have just returned to the UK after living overseas for 17 years. How is my credit rating calculated as I have been turned down for a mobile phone, although I have been accepted for a BT line and also a mortgage? Thank you.
Susan, Esher
Susan
Your experience perfectly demonstrates the fact that lenders often calculate their credit scores in quite different ways. Each will look at the same information: the information you give on your application form; information they may have about you already (if you've been a customer in the past); and the information we hold on your credit report. They then use credit scoring to work out a score that indicates your risk of defaulting on any new credit, based on how past customers with similar profiles have behaved. I think your main hurdle will be the fact that credit history information is generally held for six years, meaning that your stay overseas probably makes you a bit of an unknown quantity at the moment.
Most banks register customer overdraft facilities with the credit reference agencies, so if you have a UK current account you might find some details about that on your credit report. Mortgage providers register information about their accounts with the credit reference agencies, so your recent mortgage agreement should mean that you are now starting to rebuild a credit history in the UK.
It might be useful for you to order a copy of your credit report so you can see exactly what is recorded. You should check, for instance, that your name appears on the electoral roll because this also affects credit scoring. If you have only registered to vote very recently, your local council will publish this information on 1 December and it will appear on your credit report shortly afterwards.
James