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  • FIRST POST
    • moneymoney16
    • By moneymoney16 8th Oct 16, 4:17 PM
    • 9Posts
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    moneymoney16
    Why is my credit rating bad (credit info shown). Advice please
    • #1
    • 8th Oct 16, 4:17 PM
    Why is my credit rating bad (credit info shown). Advice please 8th Oct 16 at 4:17 PM
    Hi all

    I have been hoping to cosolidate my debts for a while now onto one credit card, with no/lower interest but my credit rating is holding me back.

    I had a blip in my rating the second half of last year - I graduated from university, red brick, in an engineering degree summer 2015, then I was looking for work and did not secure a job until end of December 2015. So for 6 months I was on jobseekers allowance and so unable to keep up with my credit card repayments. I rang 2 of my credit cards every month - Barclaycard and Bank of Scotland, to tell them I was still looking for work. It was an agreement that I ring every month to let them know my situation and during this they made sure no interest was added on. Obviously the minimum monthly repayments kept adding up though.

    When it came to about January this year Barclaycard were not far off defaulting me I think (I think as it had been 6 months of no payments), and Bank of Scotland did default me. I rang them up to tell them my situation and that I had now found work, earning £23,000/year. The woman understood my situation that I was only in finacial trouble as I had finished uni and was looking for work. She said she would remove the default and then suggested putting me on a thing where I pay £50/month and there is no interest. She said I will get no monthly statements, just a letter every year I think saying what I owe. She said I was actually better off doing this now, rather than going back to paying the credit card like I used to as there was no interest with this, so I thought great. She assured me the default had been removed and this new thing would not affect my credit rating.

    Obviously at this point in January my credit rating wasn't good after about 6 months of no payments on 2 credit cards. I paid to Barclaycard what I owed them in repayments in the previous 6 months in one go in January, and since January this year have been good with my payments for everything, except for one late payment in February on my Barclaycard credit card.

    10 months into full time employment on £23,000 a year, £1500ish/month going into my TSB account, only 1 late payment, I didn't expect to still have a poor credit rating. I hoped after 6 months I'd be able to move my debts to one low interest card or even interest free (!).

    I have attached screenshots of all the information from Equifax on my credit agreements. Could anyone shed light onto why my credit rating is still bad (505 on noddle and 294 on Equifax. I signed up to Experian earlier in the year for the free trial so can't see their rating now) ? I can only assume it is the non payments end of last year? But that was 10 months ago so I thought it would improve by now.

    I'm not sure if what Bank of Scotland have put me on is affecting my rating? The grey squares say ''status - not updated'' when I hover over them. There's definitely nothing with default on my credit report, and I don't think they have me down as arrangement to pay...

    I have tried to book an appointment with TSB (I have been with them 9 years and my wages go into TSB now) to see if they can help me consolidate it all (after telling them the reason why I had financial trouble) but they aren't interested in booking an appointment with me as the woman said I have no available credit. She said there must be something affecting my rating.

    It's just annoying seeing the interest each month on my statements, when I feel I could pay it all off much more quickly and cheaply on a lower interest rate if I could get it, and I live at home, so on £23k I should be ok really financially.

    Any ideas would be much appreciated Thanks for reading!!

    Hayley

    Edit:: can't seem to put link in of my credit report as I'm a new user

    Try http ://pho.to /ANFSW (taking out the 2 spaces)
    Last edited by moneymoney16; 08-10-2016 at 4:28 PM.
Page 1
    • zx81
    • By zx81 8th Oct 16, 4:28 PM
    • 9,395 Posts
    • 9,231 Thanks
    zx81
    • #2
    • 8th Oct 16, 4:28 PM
    • #2
    • 8th Oct 16, 4:28 PM
    Ignore the numbers they give you.

    But with recent agreements in place and only a few months of good behaviour, and with a late payment even then, you're seen as high risk.

    Are you still on arrangements with your cards? If so, you need to get off those. But even so, it will likely take a couple of years before you're able to get mainstream offers.
    • moneymoney16
    • By moneymoney16 8th Oct 16, 4:33 PM
    • 9 Posts
    • 0 Thanks
    moneymoney16
    • #3
    • 8th Oct 16, 4:33 PM
    • #3
    • 8th Oct 16, 4:33 PM
    Ignore the numbers they give you.

    But with recent agreements in place and only a few months of good behaviour, and with a late payment even then, you're seen as high risk.

    Are you still on arrangements with your cards? If so, you need to get off those. But even so, it will likely take a couple of years before you're able to get mainstream offers.
    Originally posted by zx81
    I've managed to put a link in now of my report (just take out 2 spaces)

    Just with the Bank of Scotland one, just pay £50/month, no interest, no statements, just get a letter once a year she said. I'm not sure this is affecting my rating though as it's not showing as anything bad on there, just not updated (?)

    Paying the Barclaycard and TSB credit card fine.

    Couple of years?? Jeesh, I was hoping by now after 10 months of no serious issues and 1 late payment in Feb that'd I'd be in a much better place
    • zx81
    • By zx81 8th Oct 16, 4:45 PM
    • 9,395 Posts
    • 9,231 Thanks
    zx81
    • #4
    • 8th Oct 16, 4:45 PM
    • #4
    • 8th Oct 16, 4:45 PM
    8 months of a clear record is nothing, when you have customers with 6 years of perfect history picking up the best deals. Added to that, is you have a very limited file in any case, and half of that is fairly poor.

    But each month will put you in a better place, as long as you start keeping to repayments.
    • Dobbibill
    • By Dobbibill 8th Oct 16, 5:00 PM
    • 1,728 Posts
    • 2,862 Thanks
    Dobbibill
    • #5
    • 8th Oct 16, 5:00 PM
    • #5
    • 8th Oct 16, 5:00 PM
    If you are not receiving statements then it sounds like you are on an 'arrangement to pay'.

    No other lender will consider you a healthy risk if you have an arrangement for a previous debt so I don't think moving the debts to a different card will happen any time soon.

    Keep throwing every spare penny at the debts.
    • DCFC79
    • By DCFC79 8th Oct 16, 5:02 PM
    • 27,770 Posts
    • 17,534 Thanks
    DCFC79
    • #6
    • 8th Oct 16, 5:02 PM
    • #6
    • 8th Oct 16, 5:02 PM
    You say you were out of work following uni, did you apply jobs and any job just to get some money in ?
    Je Suis Charlie
    • moneymoney16
    • By moneymoney16 8th Oct 16, 5:11 PM
    • 9 Posts
    • 0 Thanks
    moneymoney16
    • #7
    • 8th Oct 16, 5:11 PM
    • #7
    • 8th Oct 16, 5:11 PM
    If you are not receiving statements then it sounds like you are on an 'arrangement to pay'.

    No other lender will consider you a healthy risk if you have an arrangement for a previous debt so I don't think moving the debts to a different card will happen any time soon.

    Keep throwing every spare penny at the debts.
    Originally posted by Dobbibill
    Would it help if I spoke to Bank of Scotland and came off that arrangement, went back to paying interest etc each month like a normal credit card? The woman at BOS said it wouldn't affect my credit rating

    I can't tell from looking at credit reports if that's affecting it. It doesn't say arrangement to pay, just not updated, but it could well be and be affecting my rating.

    I'm unsure if it's that, or the missed payments for 6 months 10 months ago which are most affecting my rating.

    I suppose I'd have to do the maths on what I'm saving on interest on that one, and what I could save if my rating improved and I got a better interest rate credit card, consolidating it all...
    • zx81
    • By zx81 8th Oct 16, 5:18 PM
    • 9,395 Posts
    • 9,231 Thanks
    zx81
    • #8
    • 8th Oct 16, 5:18 PM
    • #8
    • 8th Oct 16, 5:18 PM
    Both arrangements and missed payments are horrible for your credit history.

    For as long as you continue to breach the terms of your agreement by being on an arrangement, the worse it will get.
    • moneymoney16
    • By moneymoney16 8th Oct 16, 5:34 PM
    • 9 Posts
    • 0 Thanks
    moneymoney16
    • #9
    • 8th Oct 16, 5:34 PM
    • #9
    • 8th Oct 16, 5:34 PM
    Both arrangements and missed payments are horrible for your credit history.

    For as long as you continue to breach the terms of your agreement by being on an arrangement, the worse it will get.
    Originally posted by zx81
    Would I be better off paying BOS all I can spare each month, say a few hundred to get that settled on my file, even though it's interest free, just to get rid of it? (I think it's about £2000)

    Or do you think they could put me back onto normal terms again, and pay them like normal each month along with the other credit cards, with interest?

    Or is it best to leave the BOS one at £50/month and pay off chunks of the other credit cards? (I'm guessing not if people think the BOS is hindering me at the moment)

    I'd have gone back to paying like normal BOS back in Jan if i'd have known it would affect my rating. I feel misinformed by the woman at BOS, unless she couldn't let me go back to normal terms as it did go to default and she removed it...
    • moneymoney16
    • By moneymoney16 8th Oct 16, 5:37 PM
    • 9 Posts
    • 0 Thanks
    moneymoney16
    I just don't want to throw it all at BOS to clear it, to then still have a bad rating when that money could have gone towards the cards with interest on
    • Dobbibill
    • By Dobbibill 8th Oct 16, 5:42 PM
    • 1,728 Posts
    • 2,862 Thanks
    Dobbibill
    Only you can decide whether an Arrangement to Pay is a better scenario for you to clear the debt v's paying interest to improve your credit history and future, should you want credit in the future eg a mortgage/move mortgage providers.
    • shortcrust
    • By shortcrust 8th Oct 16, 6:35 PM
    • 1,103 Posts
    • 1,332 Thanks
    shortcrust
    There's a bit of that old 'don't they know who I am?' thing going on here. Not being able to pay your debts isn't less of a big deal because you'd recently graduated from a red brick uni. You say this:

    "The woman understood my situation that I was only in finacial trouble as I had finished uni and was looking for work."

    as if it was completely unforeseeable. Did you not realise that you'd eventually finish uni and have to look for work?
    • moneymoney16
    • By moneymoney16 8th Oct 16, 7:43 PM
    • 9 Posts
    • 0 Thanks
    moneymoney16
    There's a bit of that old 'don't they know who I am?' thing going on here. Not being able to pay your debts isn't less of a big deal because you'd recently graduated from a red brick uni. You say this:

    "The woman understood my situation that I was only in finacial trouble as I had finished uni and was looking for work."

    as if it was completely unforeseeable. Did you not realise that you'd eventually finish uni and have to look for work?
    Originally posted by shortcrust
    Ouch, no need to get personal - yes of course, I was aware I would need a job after finishing uni. I was looking near the end of uni but I really had to focus on my final year project to boost my marks as it was worth a lot. Even so, I went to about 8 interviews around July, got a job and then found out I was lied to by the recruiter about the job so I pulled out at the point of signing to rent somewhere. Then July back to square 1 of applying. The engineering market and what I want to get into wasn't exactly booming, and everyone wanted experience in the market so getting a job wasn't exactly easy. Throw in the mix I had depression and retook a year at uni as someone I knew committed suicide, I got questioned at interview about that, again doesn't make getting a job easy. If you really want to go down the personal route...

    My point was more my bad 6 months and my only bad 6 months since my first credit card around 2012, was due to job market for graduates - not because I couldn't be bothered. I had no bad record before or since other than an odd late payment. I understand everyone has their reasons why they're in financial difficulty, and in that situation speaking to that woman it was just in the hope she had some understanding it's a blip for good reason, which she did understand and took the default off.

    I hope we can stick to the point of the thread now.
    • Westminster
    • By Westminster 9th Oct 16, 5:54 AM
    • 522 Posts
    • 337 Thanks
    Westminster
    You have high utilisation, delinquent balances and multiple consecutive missed payments.

    All of this is why you are not seen as a good risk by potential lenders.

    Im a bit surprised that you don't see this and it lends weight to the argument that financial management (and the long term consequences of a blip) should be taught in school before people get access to credit.

    Don't focus on what RBS have told you as its not the only account you have issues with and they are not regulated and qualified to advise on your credit file.

    Regarding your best course of action - i dont think there is a definitive right answer. In your position i would probably cut all my outgoings to the bare minimum while sending every spare pound to RBS and ensuring minimum payment direct debits are setup for any other credit account. Unless you still have 0% overdraft then that also needs to be cleared as sitting regularly so deep in an OD is doing you no good.
    • ukamber1
    • By ukamber1 9th Oct 16, 9:30 AM
    • 76 Posts
    • 14 Thanks
    ukamber1
    Hi all

    I have been hoping to cosolidate my debts for a while now onto one credit card, with no/lower interest but my credit rating is holding me back.

    I had a blip in my rating the second half of last year - I graduated from university, red brick, in an engineering degree summer 2015, then I was looking for work and did not secure a job until end of December 2015. So for 6 months I was on jobseekers allowance and so unable to keep up with my credit card repayments. I rang 2 of my credit cards every month - Barclaycard and Bank of Scotland, to tell them I was still looking for work. It was an agreement that I ring every month to let them know my situation and during this they made sure no interest was added on. Obviously the minimum monthly repayments kept adding up though.

    When it came to about January this year Barclaycard were not far off defaulting me I think (I think as it had been 6 months of no payments), and Bank of Scotland did default me. I rang them up to tell them my situation and that I had now found work, earning £23,000/year. The woman understood my situation that I was only in finacial trouble as I had finished uni and was looking for work. She said she would remove the default and then suggested putting me on a thing where I pay £50/month and there is no interest. She said I will get no monthly statements, just a letter every year I think saying what I owe. She said I was actually better off doing this now, rather than going back to paying the credit card like I used to as there was no interest with this, so I thought great. She assured me the default had been removed and this new thing would not affect my credit rating.

    Obviously at this point in January my credit rating wasn't good after about 6 months of no payments on 2 credit cards. I paid to Barclaycard what I owed them in repayments in the previous 6 months in one go in January, and since January this year have been good with my payments for everything, except for one late payment in February on my Barclaycard credit card.

    10 months into full time employment on £23,000 a year, £1500ish/month going into my TSB account, only 1 late payment, I didn't expect to still have a poor credit rating. I hoped after 6 months I'd be able to move my debts to one low interest card or even interest free (!).

    I have attached screenshots of all the information from Equifax on my credit agreements. Could anyone shed light onto why my credit rating is still bad (505 on noddle and 294 on Equifax. I signed up to Experian earlier in the year for the free trial so can't see their rating now) ? I can only assume it is the non payments end of last year? But that was 10 months ago so I thought it would improve by now.

    I'm not sure if what Bank of Scotland have put me on is affecting my rating? The grey squares say ''status - not updated'' when I hover over them. There's definitely nothing with default on my credit report, and I don't think they have me down as arrangement to pay...

    I have tried to book an appointment with TSB (I have been with them 9 years and my wages go into TSB now) to see if they can help me consolidate it all (after telling them the reason why I had financial trouble) but they aren't interested in booking an appointment with me as the woman said I have no available credit. She said there must be something affecting my rating.

    It's just annoying seeing the interest each month on my statements, when I feel I could pay it all off much more quickly and cheaply on a lower interest rate if I could get it, and I live at home, so on £23k I should be ok really financially.

    Any ideas would be much appreciated Thanks for reading!!

    Hayley

    Edit:: can't seem to put link in of my credit report as I'm a new user

    Try http ://pho.to /ANFSW (taking out the 2 spaces)
    Originally posted by moneymoney16
    Hi, I'm no expert, so wouldnt want to give you wrong information on your best option but defaults normally stay on your credit file for 6years. Even if the Lender has agreed to remove the default and have now agreed a payment plan for some of the debts, I think the missed payments/arrears also show and impact your credit file for the same length of time. Even if you settled all your accounts and paid them off today, the past credit issues would still show on your credit file but it would look better to any possible "new" Lender.

    In a perfect world paying them off would be the best option, a "settle" account looks alot better to Lenders than account in arrears and then spend the next couple of years showing you are able to manage your accounts, which will give Lenders confidence it was a "one off" and you are back on track...sadly, 10 months isnt very long in the "credit world".

    Hope you get everything sorted out...

    Best wishes
    • moneymoney16
    • By moneymoney16 9th Oct 16, 11:39 AM
    • 9 Posts
    • 0 Thanks
    moneymoney16
    You have high utilisation, delinquent balances and multiple consecutive missed payments.

    All of this is why you are not seen as a good risk by potential lenders.

    Im a bit surprised that you don't see this and it lends weight to the argument that financial management (and the long term consequences of a blip) should be taught in school before people get access to credit.

    Don't focus on what RBS have told you as its not the only account you have issues with and they are not regulated and qualified to advise on your credit file.

    Regarding your best course of action - i dont think there is a definitive right answer. In your position i would probably cut all my outgoings to the bare minimum while sending every spare pound to RBS and ensuring minimum payment direct debits are setup for any other credit account. Unless you still have 0% overdraft then that also needs to be cleared as sitting regularly so deep in an OD is doing you no good.
    Originally posted by Westminster
    Hey thanks for your reply. I had £2000 overdraft with TSB, £1500 of which is interest free as it's the second year after graduating so I just leave that sat at that for now. Otherwise no overdrafts, it's 2 credit cards and the BOS thing.

    I'm still not so sure what BOS have done, when I did a Google it seems Equifax usually show arrangement to pay as "AP", but I've got "U" striked through in a grey box, which is not updated when I hover over it, and it just shows balance and everything as 0. I think I'll give them a ring...
    • moneymoney16
    • By moneymoney16 9th Oct 16, 11:49 AM
    • 9 Posts
    • 0 Thanks
    moneymoney16
    Hi, I'm no expert, so wouldnt want to give you wrong information on your best option but defaults normally stay on your credit file for 6years. Even if the Lender has agreed to remove the default and have now agreed a payment plan for some of the debts, I think the missed payments/arrears also show and impact your credit file for the same length of time. Even if you settled all your accounts and paid them off today, the past credit issues would still show on your credit file but it would look better to any possible "new" Lender.

    In a perfect world paying them off would be the best option, a "settle" account looks alot better to Lenders than account in arrears and then spend the next couple of years showing you are able to manage your accounts, which will give Lenders confidence it was a "one off" and you are back on track...sadly, 10 months isnt very long in the "credit world".

    Hope you get everything sorted out...

    Best wishes
    Originally posted by ukamber1
    Hi thanks for your input. I know people say ignore the numbers on your credit rating, so say in 14 months I clear all my debts (which I think I should), they'll all be settled, I guess I'll still have a poor credit rating because of those missed payments last year, but would say 2 months after that I look better as the blip was then a couple of years ago and I've settled them all? (even though my actual rating may still be low)

    Also over these next 14 months will my rating/way lenders view me get better as that blip is getting further away in the past, and the amount I owe/utilisation is going down? Or will it just be poor up until I settle them/6 years into the future?
    • Dobbibill
    • By Dobbibill 9th Oct 16, 11:56 AM
    • 1,728 Posts
    • 2,862 Thanks
    Dobbibill
    Ouch, no need to get personal - yes of course, I was aware I would need a job after finishing uni.
    Originally posted by moneymoney16
    Don't take comments personally - any job was possibly the meaning, rather than a job specific to your degree. Shop, fast food restaurant, cleaning etc etc

    Look at it as a life lesson.

    I had £2000 overdraft with TSB, £1500 of which is interest free as it's the second year after graduating so I just leave that sat at that for now. Otherwise no overdrafts, it's 2 credit cards and the BOS thing.
    Originally posted by moneymoney16
    So am I right in thinking, you have the OD but do not use it?
    Or do you use it to the max interest free amount?

    Either way you look at it, that's an additional line of credit.

    I'm still not so sure what BOS have done, when I did a Google it seems Equifax usually show arrangement to pay as "AP", but I've got "U" striked through in a grey box, which is not updated when I hover over it, and it just shows balance and everything as 0. I think I'll give them a ring...
    It does seem rather strange that they haven't marked it as AP but if it shows the balance then this is going to be deteriorating by £50 each month so a quick bit of maths by another lender will show you are on an AP.
    • redux
    • By redux 9th Oct 16, 12:01 PM
    • 15,579 Posts
    • 18,375 Thanks
    redux
    Would it help if I spoke to Bank of Scotland and came off that arrangement, went back to paying interest etc each month like a normal credit card? The woman at BOS said it wouldn't affect my credit rating
    Originally posted by moneymoney16
    I don't know how it's affecting the credit rating, but to be somewhere between pragmatic and slightly cynical, it is zero interest at the moment, so why not take advantage for the time being.

    There is some other history as well, so probably isn't likely to take a great leap forwards if only that one was fixed.

    Take things steady for a few months, making payments and reducing balances, hitting the higher interest or fee accounts harder, and getting in a position to have a bit spare for the BoS account when or if they decide it's time to review it.

    Once there is some recent history showing things are improving, and the previous problems receding in time, then it may be possible.to get a new account with decent balance transfer offer and accelerate the reduction.
    • moneymoney16
    • By moneymoney16 9th Oct 16, 5:15 PM
    • 9 Posts
    • 0 Thanks
    moneymoney16
    Don't take comments personally - any job was possibly the meaning, rather than a job specific to your degree. Shop, fast food restaurant, cleaning etc etc

    Look at it as a life lesson.



    So am I right in thinking, you have the OD but do not use it?
    Or do you use it to the max interest free amount?

    Either way you look at it, that's an additional line of credit.



    It does seem rather strange that they haven't marked it as AP but if it shows the balance then this is going to be deteriorating by £50 each month so a quick bit of maths by another lender will show you are on an AP.
    Originally posted by Dobbibill
    I tried those sorts but there wasn't a lot around to be honest, and ones I did go for I think they were suspicious as I'd just finished an engineering type course so I think they wondered why I wanted to work there. I'm sure they'd worked out it was only a stepping stone.

    Yes had £2000 interest free overdraft on a TSB student account, now a graduate account. Since July this year it's still £2k but £1500 is interest free so I keep it sat at that now so I'm not paying interest on it. I figured best to leave that til last to pay off after the credit cards as it's not costing me.

    The BOS thing doesn't show any balance or anything. It's under one of the pics in the link at the end of my first post. I don't think it shows the £50 I pay each month either
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