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    • worriedmamma
    • By worriedmamma 22nd Sep 16, 8:41 PM
    • 80Posts
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    worriedmamma
    Credit file query re: closed account
    • #1
    • 22nd Sep 16, 8:41 PM
    Credit file query re: closed account 22nd Sep 16 at 8:41 PM
    Hi all

    Just wondered if anyone here could shed some light.

    Since going bankrupt last week I signed up to ClearScore to check my credit file. The main debt I had/reason for going bankrupt was on there as a 'Closed' account with a 0 balance. I thought that was quick. When I checked the timeline, this account was closed and balance set to zero in 2012. I've been paying an arranged much lower amount since 2011 when the debt become unsecured (sold a property in negative equity!)

    My overdraft is on there, at the right amount. I guess it's irrelevant now but just curious as to why it was zero'd back in 2012 when as far as I'm aware the account is very much open!

    Thanks x
Page 1
    • NotEvanAPot
    • By NotEvanAPot 22nd Sep 16, 9:47 PM
    • 67 Posts
    • 43 Thanks
    NotEvanAPot
    • #2
    • 22nd Sep 16, 9:47 PM
    • #2
    • 22nd Sep 16, 9:47 PM
    ClearScore is a free report, same as Noddle and a few others. Their information is (almost) forgetable. If you want the real picture, SAR at 2 to each agency (6 total) will give you a picture worth viewing.

    Anything apart from the status of undischarged bankruptcy on a credit report is more or less irrelevant within the first 12 months.

    Once a BR is discharged, leave the clear up for a couple of months after. Repeat SAR, anything not in line with stickies, send the standard letters and check again a couple of months later.

    There are a lot of posters that appear to be of the belief that clearing up the credit report(s) is some magic sticking plaster to cover the BR marker. Until that disappears after 6 years (excepting the few who secure mortgages, mainstream credit cards etc) you're basically in a fixed position.

    I'll hold back on my opinions on those that seem to celebrate gaining access to credit so soon after discharge. As a recent poster highlighted, the rinse and repeat BR candidates are becoming more apparent. This forum allows us to vent and support, but ultimately, BR is a legal remedy, not something to rejoice when using, abusing or wantonly circumventing reaponsibilities.
    • worriedmamma
    • By worriedmamma 22nd Sep 16, 10:43 PM
    • 80 Posts
    • 17 Thanks
    worriedmamma
    • #3
    • 22nd Sep 16, 10:43 PM
    • #3
    • 22nd Sep 16, 10:43 PM
    hi

    thanks for your reply. The only credit I had / have was the mortgage which forms a small part as unsecured debt and an overdraft I had to use to move. I wont be getting any more credit until hopefully we can afford to buy a property in the future . I'm not bothered about cleaning up my credit file yet. Just curious as to why the lender had put my outstanding loan amount to 0 in 2012
    • mwarby
    • By mwarby 23rd Sep 16, 7:02 AM
    • 522 Posts
    • 197 Thanks
    mwarby
    • #4
    • 23rd Sep 16, 7:02 AM
    • #4
    • 23rd Sep 16, 7:02 AM

    My overdraft is on there, at the right amount. I guess it's irrelevant now but just curious as to why it was zero'd back in 2012 when as far as I'm aware the account is very much open!

    Thanks x
    Originally posted by worriedmamma
    I think this can happen when your debt is sold on, you'll probably find on the full report (clear score hides some stuff i think) that there is a new account opened in 2012 which covers the debt and repayments
    • tigerfeet2006
    • By tigerfeet2006 23rd Sep 16, 8:38 AM
    • 13,673 Posts
    • 29,760 Thanks
    tigerfeet2006
    • #5
    • 23rd Sep 16, 8:38 AM
    • #5
    • 23rd Sep 16, 8:38 AM
    The reason for cleaning up the file after discharge is to help stop debts being sold on and you being bugged by debt agencies. It's not 100% foolproof but it helps.

    The other reason is that when BR drops off your file after the 6 years you want the debts to go at the same time and if they are recorded wrong then they won't. It's easier to do just after discharge than later when debts can be sold etc.
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    • NotEvanAPot
    • By NotEvanAPot 23rd Sep 16, 12:25 PM
    • 67 Posts
    • 43 Thanks
    NotEvanAPot
    • #6
    • 23rd Sep 16, 12:25 PM
    • #6
    • 23rd Sep 16, 12:25 PM
    The reason for cleaning up the file after discharge is to help stop debts being sold on and you being bugged by debt agencies. It's not 100% foolproof but it helps.

    The other reason is that when BR drops off your file after the 6 years you want the debts to go at the same time and if they are recorded wrong then they won't. It's easier to do just after discharge than later when debts can be sold etc.
    Originally posted by tigerfeet2006
    Agree with this, however, without pointing fingers at particular posters or hijacking this thread, lots of posters whip themselves in to a frenzy about having everything zeroed on credit reports and gaining high interest credit cards in the vain attempt to improve the credit agency "number" rating. It does sweet FA whilst the bankruptcy marker stands as present.

    Those of us that know about these things know that such "ratings" are meaningless vanity figures, and that the majority of lenders have their own inhouse profiles for decision making. I cannot, but happy to be corrected, name a single lender that uses an Experian, Equifax or CallCredit "rating" number in reaching their decision to lend (or not).
    • worriedmamma
    • By worriedmamma 23rd Sep 16, 2:53 PM
    • 80 Posts
    • 17 Thanks
    worriedmamma
    • #7
    • 23rd Sep 16, 2:53 PM
    • #7
    • 23rd Sep 16, 2:53 PM
    Hi, thanks all.

    Again, I'm not fussed about my credit file at all - just more curious as to why a debt I've been paying off for 5 years was zero'd in 2012. As a PP said perhaps sold on, but it has always been the same company chasing me for it (the original lender!) and there wasn't a new debt on the file for the amount outstanding as of that date. Just confused me really.

    Thanks for replying x
    • owlet
    • By owlet 23rd Sep 16, 3:47 PM
    • 1,426 Posts
    • 1,260 Thanks
    owlet
    • #8
    • 23rd Sep 16, 3:47 PM
    • #8
    • 23rd Sep 16, 3:47 PM

    There are a lot of posters that appear to be of the belief that clearing up the credit report(s) is some magic sticking plaster to cover the BR marker. Until that disappears after 6 years (excepting the few who secure mortgages, mainstream credit cards etc) you're basically in a fixed position.

    I'll hold back on my opinions on those that seem to celebrate gaining access to credit so soon after discharge. As a recent poster highlighted, the rinse and repeat BR candidates are becoming more apparent. This forum allows us to vent and support, but ultimately, BR is a legal remedy, not something to rejoice when using, abusing or wantonly circumventing reaponsibilities.
    Originally posted by NotEvanAPot
    ......without pointing fingers at particular posters or hijacking this thread, lots of posters whip themselves in to a frenzy about having everything zeroed on credit reports and gaining high interest credit cards in the vain attempt to improve the credit agency "number" rating. It does sweet FA whilst the bankruptcy marker stands as present.

    Those of us that know about these things know that such "ratings" are meaningless vanity figures, and that the majority of lenders have their own inhouse profiles for decision making. I cannot, but happy to be corrected, name a single lender that uses an Experian, Equifax or CallCredit "rating" number in reaching their decision to lend...
    Originally posted by NotEvanAPot

    I am one of those guilty of being pleased to get a high interest rate credit card & have posted about this. It's not about the numbers game at all. Anyone who has been around MSE for any length of time (especially on the finance boards) knows that the credit score is useless. You post some very good advice on here but I found this quoted post quite patronising.

    What the credit cards (and mobile phone contacts & catalogue accounts) do is to start building up a healthy credit HISTORY, so that when the BR drops off the credit history after 6 years, what's left, is a few accounts running well with lots of green dots. This is what gives the fresh start to the credit history. Nothing to do with credit score at all.

    If your credit filed is cleaned up as recommended then all defaults etc should drop off at the same time or before the BR does - leaving the healthy file in it's place. Then you can start to get mainstream cards and ditch the high interest rate ones.

    I have found on this board that yes, people do congratulate when someone has declared BR - but this isn't a celebration. It's because those posters have normally been through hell and back with debts and when we say "congratulations" or "well done" for doing it, it's support to say now you can breathe, relax a little and get sorted. I have not known this board to support people who aren't genuine (as far as we can tell) and who want to use BR illegally. Not everyone who goes BR has just had a mad overspend. Some have admittedly but eg in my case and many others a dramatic change of financial circumstances is the cause.
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    • tigerfeet2006
    • By tigerfeet2006 23rd Sep 16, 4:06 PM
    • 13,673 Posts
    • 29,760 Thanks
    tigerfeet2006
    • #9
    • 23rd Sep 16, 4:06 PM
    • #9
    • 23rd Sep 16, 4:06 PM
    Here! Here! Owlet, well said. I couldn't have put it better myself.

    I would just like to add to your post that the other reason that people want their files squeaky clean and operating with green dots when the six years is up is to get a mortgage and this will stand them in good stead.
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    The only stupid question is an unasked one
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    • Mollie_Guinness15
    • By Mollie_Guinness15 23rd Sep 16, 11:05 PM
    • 117 Posts
    • 54 Thanks
    Mollie_Guinness15
    Thank you for putting down what I was thinking, so eloquently Owlet. ��
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