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

izools

- Once an account has been defaulted, it cannot be un-defaulted. You broke the agreement and they sent you a default notice to say you broke the agreement thus it ended. You cannot un-break the original credit agreement. You didn't have a credit agreement with the DCA, so it will still remain marked in default. This is correct and can't be removed.

- Barclaycard might be updating the account as settled in the next update. Can take upto three months. Remind them.

- Unclassified normally means the account is in an arrangement to pay; the payment status is not reported as the account is not being run in line with the original agreement, but is still being run in line with an informal arrangement. Either that, or the account has not been used.

- ER on the Channel islands is the same.

..... Do you have any outstanding debt on any accounts? How about debts being paid off at an agreed reduced rate? (this could be the Unclassifed status account?)

never-in-doubt

Read this - it will answer your questions. Credit Reference Agencies

Briefly, a default stays for 6 years from the date of default. The status S or D matters nothing, the default is adverse and remains for a total period of 6 years from the date it was added (i.e. default date).

You cannot have it removed or amended, you just have to see out 6 years then it will disappear from your credit file totally.

The unclassified searches are searches that only you see, they have no impact on any credit. Unless you mean status U on accounts, which means they are too new and have no status as yet. Arrangement to Pay is A/P - and means you are in an arrangement with the lender.

Forget paying for a credit score, it is a made up number not worth the money you pay!

Good Luck!

CannyJock

JillyOJolly wrote: »

Also Barclaycard still have the status as "normal" does this mean the account is not "Satsified"? I did get a letter from them confirming they had closed the account.

Closing the account can mean that they will prevent you from using the card going forward. If it still shows with a "Normal" status then the card isn't "Settled". Worth contacting Barclaycard asking them to close the account fully and update the CRA's with the Settled status.

JillyOJolly wrote: »

My score at present is 574.

Meaningless number that doesn't relate to anything I'm afraid.

JillyOJolly wrote: »

Sorry one more question - what does "unclassified" mean on your status history and is this a negative or a neutral status.

Basically means no information that month - normally when a card has been dormant or when you first activate a card - it's neutral to positive because it's not a "missed" payment in the history.

JillyOJolly

Hi thanks all.

I dont have any remaining balances at all. YIPPEE it did take me 4 years to pay off via payplan and I never missed one payment to them and I was also lucky enough to get bank charges and credit card charges (naughty MBNA) back which also helped bring balances back to what I had paid back. I was not lucky enough to have interest frozen or reduced so I paid back exactly what I owed.

I will certainly get in touch with Barclaycard to get them to update to settled.

I have also been reading that sometimes in order to get your credit back on track is to take out another card, use it with small amounts, pay it back in full. is this correct? I kinda worry about getting any credit at all, although I certainly learnt some very hard lessons getting into debt in the first place and very chuffed that I paid it all back. I have no doubt at all that I would get into that kind of mess again. I am now very settled with my partner of two years who i told all my financial history to and he is very settled with money and I (we) hope to apply for a mortgage in the next couple of years and I worry that i may end up having to hold back on this.

Thanks again all, much appreciated.

CannyJock

JillyOJolly wrote: »

I have also been reading that sometimes in order to get your credit back on track is to take out another card, use it with small amounts, pay it back in full. is this correct?

Yup, showing "ongoing responsible use of credit" all counts in your favour. You might be lucky to get a mainstream one though with the default you mentioned before.

JillyOJolly wrote: »

I (we) hope to apply for a mortgage in the next couple of years and I worry that i may end up having to hold back on this.

If you were applying for it on your own tomorrow, I'd say "snowballs chance in hell", but who knows how the mortgage market will be in a few years time and whether a joint application will be more successful than on your own. All you can do is start repairing your credit rating and keep on top of your finances.

Chrysalis

scottish-girl wrote: »

Hey

I have tried to get a car on finance, they said no, so i tried this about 2 other times and they said no because of my credit rateing. I even went to my bank that i have been with for 10years to get a credit card and they said no because my crediti rateing. So i went and got a catalog and used that and been paying it back each month. i applied for a holiday card and they said my rateing was not high enough. How am i ment to get a high credit rateing to get stuff?? i am not in debt a dont have any credit cards so can any one help

I am curious what the answer to your question is as well.

As I understand it there is no such thing as a credit rateing with the credit agencies, the place you apply for credit from gives you a credit rateing based on their own criteria.

The general advice I see on this forum indicates the bulk of the rateing comes from not having a CCJ and bankruptcy + been on the electrol roll, I guess also your income. However my own experience indicates where you live, time at address, whether you own your house and have a landline is also a significant factor.

What they probably mean in your case is there is not enough history of passed credit on your file and of course oyu wondering how can you get that history if noone will give you credit. Thats why people are reccomended to go for subprime credit cards and use them to build up a history.

My own opinion is when people get turned down for credit they should be given an accurate and honest reason why, there is always very vague responses which typically send the claimant on a wild goose chase checking their credit report when the real reason could be something else.

Kitehoo

Hi All,

I've just returned to the UK from the US in July 09. I was over there for nearly 7 years and didn't leave any accounts open in the UK.

I'm now in the position of trying to completely re-establish a new credit rating. I've opened my current account, savings account, and ISA Savings account. I've placed myself on the electoral register. I'm paying all my bills on time etc. I've also got a contract phone with Orange.

I now what to know what my next steps should be. Are there any pre-paid credit cards that can help improve my credit ? Or any other useful steps I can take.

izools

I would suggest opening one or two of the following:

Vanquis Bank Credit Card
Capital One Classic Card
Aqua Card
Barclaycard Initial

I've listed them in most to least likely to approve, remember these are all high interest cards so you should only borrow what you can afford to repay in full on a month to month basis to avoid paying the high APR.

I personally would open the Vanquis and Capital One cards. After a year of repayment history with them, along with your current account and mobile contract on your credit file, you should be in a very strong position to open a "Prime" credit card with any of the high street lenders and ditch Vanquis and Capital One.

Good luck, and welcome back to the UK!!

pete_

Is anyone else having trouble signing up for this?

I go through the motions, fill in form, card details etc and then when I submit it tells me there has been an error and to contact them by phone!

The buggars I want my £8. :mad:

Exile

Kitehoo wrote: »

Hi All,

I've just returned to the UK from the US in July 09. I was over there for nearly 7 years and didn't leave any accounts open in the UK.

I'm now in the position of trying to completely re-establish a new credit rating. I've opened my current account, savings account, and ISA Savings account. I've placed myself on the electoral register. I'm paying all my bills on time etc. I've also got a contract phone with Orange.

I now what to know what my next steps should be. Are there any pre-paid credit cards that can help improve my credit ? Or any other useful steps I can take.

Did you have any problems opening your accounts and getting the Orange contract?