Credit scoring

This really pisses me off. I recently applied for credit and was refused. When I inquired why I was denied credit, the company told me that they couldn't say, it's a decision made by the credit agency that gives them a credit score - they base their decision on this. If I want to query it, I have to get in touch with them. So I did but they couldn't give me specifics. They told me that it is my right to apply for a credit report from them that would give me more information. It cost me £2. I was a bit concerned as to why I was refused as, although I have had a chequered past, I've managed to get on top of my finances and always pay my bills on time. I can't remember the last time I didn't, years ago.

Anyway, I receive my Equifax report. It's quite interesting, printed out in real old system font like a prop from War Games or something. On it is pretty much everything I have done over the last 5 or 6 years. Looking at the reference key, all of my bills or credit agreements were either 'S' (Settled or Satisfied Account) or 'O' (Payment received on time). Surely this means I am a decent enough chap to lend money to? But on the documents I received, there is no mention of a 'credit score'. Why I was refused credit is still unclear.

I did a little reading up on this and there were a couple of things that really make me nervous:
- Firstly, because I have a joint mortgage with my wife, she is now what they call an 'association' meaning that if she screws up her credit, mine gets screwed (and vice versa). This association will continue to be binding unless we divorce AND sever all financial links AND are not living in the same property.
- If previous tennants/occupiers of your house have had bad credit, it can count against you. In fact, if you find details of their bad credit appear on your credit report, it's up to you to get it removed and will count against you until it's done.
- If the vicinity you live in has an high record of bad debt, it will count against you.
- If you make a mistake on your application for credit (for instance if you say you have a loan for £5000 but the outstanding balance is £5500) it will count against you. In fact any oversight or error made in your application will count against you.
- If you take a loan out, the outstanding balance of your loan is actually calculated as the loan plus the interest. So if you have a loan of £1000 at 10% pa on 12 monthly payments, your credit file will show a balance of £1100.
- If you default on a payment, it doesn't matter if it's £1 or £1000, it's counted as the same
- A defaulted payment last month will be considered worse than being declared bankrupt a year ago
- And what I found the worst, every time you apply for credit, it is recorded on your credit report and counts against you if you are declined.

Now after considering all of that, I'm terrified to actually apply any more! Bearing in mind that all of the above is not exactly explained to you when you apply for credit. I rang back Equifax and asked how I can either improve or repair my credit score and they said that I just have to keep paying bills before the due date and 'over time' it will improve. In other words you actually have no idea when you can apply for credit, it's basically a guess. And if you apply too soon, you get declined and your score goes tits up again.

I was in John Lewis dept store last weekend and noticed a sign for their credit card, 29.9% APR they are charging. To charge that is scandalous enough, but to think that you could be damaging your credit score by even applying for this makes my blood boil. As the old adage says, you can only get credit when you can prove you don't need it.

I pray for the day that Pixies 'Where is my mind' starts blaring out and buildings start dropping.*

* If this is a little subtle, watch Fight Club