All that glisters

By THIS IS MONEY
Updated:

 

I am a 23-year-old engineer who graduated last year. My bank recently offered me a gold credit card as my salary is £34,000. But I've been turned down for the card twice, even though my lender appealed on my behalf the second time. I can't see why because I have never missed payments on my student or graduate loans. The only thing I can think of is that I have changed address about once every six months in the past four years - though that is common as part of student life. How do address changes affect you credit rating? And how can I find out more details of why I was refused. The card centre would only say I had a low credit score. AH,London.

Jill Stevens of credit reference agency Experian says: You are right - the fact that you changed address frequently may be one of the things that contributes to your low credit score - many lenders like to see evidence of stability so multiple-address changes can adversely affect you credit rating. But it is unlikely to be the only reason you were refused.

My guess is that your low score is the result of several different factors, including your age, the address changes and the fact that you have no credit history - student loans and graduate loans are not taken into account when credit reference agencies compile your credit history.

Also you may not be on the electoral register where you are now living, which could also count against you.

It may also be that the gold card you are applying for is not aimed at people like yourself so it is harder for you to fit the cardholder profile they are looking for. Put together these may add up to a poor score.

It sounds like you are not going to get any further with this lender. Why not try another, or a different product? When you apply give extra information explaining why you changed addresses and anything else you think may help. If you are not on the electoral roll, put yourself on it and try to stay at one address for some time.

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