Credit Rating: How it works and How to improve it discussion area

Gemmadilem34

Hi everyone, I am wondering if you can help me.
I am really panicked by my credit rating. I know it must be really low and I am concerned that I will never get a mortgage!

Here's the deal. I am a recent graduate - graduated in July 09.

Whislt at uni I took on the internet in my name but it was actually paid for by me and 2 other girls who couldn't be bothered to sort it out - hence why I put it in my name. This was with Virgin Media. I believe there is still a debt of 20 pounds outstanding as I have been chased by debt collectors - I am too naive and scared to ring them up to pay it off and am considering just sending in a cheque to collections to pay it off. I know that I probably have a default on my account as a result. The girls never paid on time and I hated asking/pestering for the money. Can I get this removed from my credit file due to unfairness?

I also have an Orange mobile phone contract which I failed to get a direct debit for because I hit some very low points with finances whilst at uni. God knows why I agreed to get the contract NEVER AGAIN. So I believe this will have impacted my credit file massively.

I also have problems with banks - I transfer money between accounts alot and a few times I have forgotten and gone overdrawn by literally a quid. At one point Halifax charged me 70 quid for being overdrawn by about a pound and I refused to pay this and this resulted in being chased by collectors. I paid up in the end.

So in short:
I've had an Orange contract gone bust on me
I've got a Virgin Media account payment still pending so I have obviously defaulted
I've had various bank charges which I took a long time to pay!

As well as this, my parents moved house so I have only been in this house for 2 yrs which also lowers a credit rating.

I have two overdrafts, they total 2.5k debt in total but I am already reducing them, no credit cards and no store cards, but I do have a car on finance (I believe the Regional Director bartered for me, as my first application was DECLINED ).

So I'm panicked. I am turning over a new leaf. I have savings now, I am reducing student overdraft gradually and I have set up up to date direct debits...

I want a mortgage once I have saved up about 10-15k but I'm worried that my credit score will impact on my B/F who has masses of savings and no debt whatsoever !

arnoldma

Moggles wrote: »

How did this arise? Are you contemplating another move in the near future?

Note: there's nothing to prevent you from being on the electoral roll at two separate addresses. A large body of voters (students) register at Uni, but stay on the ER at their parents' home.

Caution: if your family home is occupied by one person who qualifies for a single person's discount, I wouldn't advise it.

thanks again, so if there is no one person discount on the address, i just need to register my bank address on the electoral roll?

will this make a big difference in my credit rating? i'm trying to work out why i was rejected by tesco credit card, i have a 800 pound credit card with no missed or late payments for almost 2 years.

thanks.

Mic2904

Can anyone let me know, why my Halifax Credit Card is NOT mentioned in my report?

I am having the card for nearly 1 year now...

I have a 2nd CC, i got last May and that CC is mentioned in the report.

Since I pay them ALWAYS back in full, the Halifax CC should get my score even higher, shouldnt it?

Though my Credit Score is not that bad ;-)

never-in-doubt

colrei wrote: »

How do I remove error on my credit report re late payment when last payment on account was in 2000 and 2001 but credit report showing that payment was late in 2007. More than 6 years after last payment sent and account balance less than £5.

This is with Lloyds bank. I have written to bank and 2 of the credit agency but no correction done. I know it will addect my credit rating

Easiest option is to SAR Lloyds (costs a tenner) and then send a copy of any statements they send you to the CRA's which will show the last payment date.

never-in-doubt

marcellep wrote: »

I could do with more Green "O" just like most people I guess.

But I do not want to keep them if it will begin to affect my credit.

They are with GU and Next, GU is always interest free and Next is not that high either

But I do agree others are ROBBING BAS*ARDS

Mate keep them open, remember you have the problem with Crappy1 at the moment so you won't get new credit until that is sorted next year..... i'd leave the catalogues open so when the crappy1 default does drop off, you'll have an excellent history ready for your new credit applications.

My opinion - leave them open mate.

never-in-doubt

Kez1983 wrote: »

Hi all, have had a quick search but cant find the info on this, I have just checked my credit rating with 2 of the 3 companies, neither of them list my HSBC credit card. Is this normal?

It lists my store card mastercard but this only has a low limit so it is showing I am using 78% of my available credit, but I am not! I am looking to apply for a mortgage soon, but will be through HSBC (they have quoted me best deal) so will this affect things?

Help!!

Thanks!

My HSBC shows on all 3 CRA's - is it new?

The mortgage won't affect anything..... if you bank with them (you must to get their CC) then they will already know you and use the CRA's as an external source only - their internal behaviour score will also help.

iwantoneplease

Not sure I posted this in the right place first time so here goes...

I've been working on my credit rating for the past year and wondered if anyone could advise me on what to do next to improve.

The below is information from my latest credit report

Number of credit accounts (including those settled) - 14
Amount of available credit (excluding mortgages) - £949
% of your total credit being used (excluding mortgages) - 36%
Amount of outstanding debt (excluding mortgages and defaults) - £9,708
Number of accounts overdue - 0
Number of missed or late repayments in the last year - 0
Number of times your credit report has been searched in the past 3 months - 1
Number of times your report has been searched in the past year - 14
Number of public information records on your report - 1
Number of Notices of Correction on your credit report - 1
Number of aliases (other names) and/or financial associations recorded - 0
Length of time you have lived at your current address - 9 years 3 months
Are you registered on the electoral roll at your current address - Yes

Account Information

J D WILLIAMS Mail order Satisfactory £89 Balance - Limit £400
VANQUIS BANK Credit card / S... Satisfactory £462 Balance - Limit £500
SHOP DIRECT FINANC... Mail order Satisfactory £0 Balance - Limit £600
ADVANTAGE FINANCE ... Hire purchase/C... Satisfactory £9,157
The 10 other accounts are all settled and marked satisfactory

Credit Expert Credit Score - 883 Fair

never-in-doubt

Look at getting an account with your main bank to get away from subprime and close the sub-prime accounts.

Stop applying as you have a lot of searches - 6 in 6 months/13 a year is classed as borderline with most lenders. More than this and 90% chance of auto-decline as it suggests you're desperate for credit.

Public Info - so you have a CCJ then?

iwantoneplease

never-in-doubt wrote: »

Look at getting an account with your main bank to get away from subprime and close the sub-prime accounts.

Stop applying as you have a lot of searches - 6 in 6 months/13 a year is classed as borderline with most lenders. More than this and 90% chance of auto-decline as it suggests you're desperate for credit.

Public Info - so you have a CCJ then?

Thanks, Yes a CCJ in 2006 that is paid and satisfied, most of those searches are the the ones experian do I've taken this from my account so it's showing high. I've just counted only 7 searches for the past 12 months that are other companies.

Entry Number: P1 - Searched on: 22/08/2009
Searched By: J D WILLIAMS & COMPANY LIMITED
Application Type: Direct Mail Order Account

Entry Number: P2 - Searched on: 15/06/2009
Searched By: ADVANTAGE FINANCE LTD
Application Type: Hire Purchase / Conditional Sale

Entry Number: P3 - Searched on: 14/06/2009
Term: 048 months
Searched By: BLACK HORSE LTD
Application Type: Hire Purchase / Conditional Sale

Entry Number: P4 - Searched on: 24/03/2009
Searched By: CAPITAL ONE BANK (EUROPE) PLC
Application Type: Credit Card

Entry Number: P5 - Searched on: 26/10/2009
Searched By: CREDIT REPORTING AGENCY LTD
Application Type: Unrecorded Enquiry

Entry Number: P6 - Searched on: 08/10/2009
Searched By: EXPERIAN CONSUMER SERVICES
Application Type: Identification: Generic Check
Note: This information was provided to us by you when you applied for your Experian credit report online.

Entry Number: P7 - Searched on: 25/09/2009
Searched By: CREDIT REPORTING AGENCY LTD
Application Type: Unrecorded Enquiry

Entry Number: P8 - Searched on: 24/08/2009
Searched By: CREDIT REPORTING AGENCY LTD
Application Type: Unrecorded Enquiry

Entry Number: P9 - Searched on: 23/08/2009
Searched By: EXPERIAN CREDIT REPORT (1)
Application Type: Identification: Generic Check
Note: This information was provided to us by you when you applied for your credit report via our website.

Entry Number: P10 - Searched on: 24/07/2009
Searched By: CREDIT REPORTING AGENCY LTD
Application Type: Unrecorded Enquiry

Entry Number: P11 - Searched on: 15/07/2009
Searched By: RBS PLC IRO DIRECT LINE
Application Type: Insurance Quotation

Entry Number: P12 - Searched on: 11/06/2009
Searched By: CREDIT REPORTING AGENCY LTD
Application Type: Unrecorded Enquiry

Entry Number: P13 - Searched on: 18/04/2009
Searched By: RBS PLC IRO DIRECT LINE
Application Type: Insurance Quotation

Entry Number: P14 - Searched on: 22/03/2009
Searched By: CREDIT REPORTING AGENCY LTD
Application Type: Unrecorded Enquiry

Entry Number: P15 - Searched on: 04/02/2009
Searched By: HALIFAX - EASYCASH A/C
Application Type: Unrecorded Enquiry

Entry Number: P16 - Searched on: 10/01/2010
Searched By: EXPERIAN CONSUMER SERVICES
Application Type: Credit Report
Previous search on: 04/01/2010, 02/01/2010
Note: This information was provided to us by you when you applied for your Experian credit report online.

Entry Number: P17 - Searched on: 26/12/2009
Searched By: EXPERIAN CONSUMER SERVICES
Application Type: Credit Report
Previous search on: 24/12/2009, 21/12/2009, 17/12/2009, 13/12/2009, 12/12/2009
Note: This information was provided to us by you when you applied for your Experian credit report online.

Entry Number: P18 - Searched on: 12/12/2009
Searched By: LOWER MY BILLS FROM EXPERIAN
Application Type: Credit Report
Note: This information was provided to us when you searched for financial products using Lower My Bills from Experian

Entry Number: P19 - Searched on: 30/11/2009
Searched By: EXPERIAN CONSUMER SERVICES
Application Type: Credit Report
Previous search on: 29/11/2009, 25/11/2009, 23/11/2009, 21/11/2009, 20/11/2009
Note: This information was provided to us by you when you applied for your Experian credit report online.

Entry Number: P20 - Searched on: 21/11/2009
Searched By: LOWER MY BILLS FROM EXPERIAN
Application Type: Credit Report
Note: This information was provided to us when you searched for financial products using Lower My Bills from Experian

Entry Number: P21 - Searched on: 27/10/2009
Searched By: EXPERIAN CONSUMER SERVICES
Application Type: Credit Report
Previous search on: 20/10/2009, 18/10/2009, 17/10/2009, 16/10/2009, 15/10/2009
Note: This information was provided to us by you when you applied for your Experian credit report online.

Entry Number: P22 - Searched on: 23/08/2009
Searched By: EXPERIAN CREDIT REPORT (1)
Application Type: Credit Report
Note: This information was provided to us by you when you applied for your credit report via our website.



Would it be worth getting shut of the Vanquis Card then? do I leave it open with no outstanding or get it closed?

never-in-doubt

iwantoneplease wrote: »

Thanks, Yes a CCJ in 2006 that is paid and satisfied, most of those searches are the the ones experian do I've taken this from my account so it's showing high. I've just counted only 6 searches for the past 12 months that are other companies.

Would it be worth getting shut of the vanquis card then? do I leave them open with no outstanding or get them closed?

Your CCJ will stop you getting credit, so for the next 2 years forget mainstream - keep Vanquis open as it's not too bad to build up history for when the CCJ drops off.

Settled or outstanding makes no difference, it is a severe adverse marker - the only one worse is a Bankruptcy marker!