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

izools

shomk wrote: »

We have a loan with HSBC and we recently asked that we may have a 3 month break as we we struggling.

The bank suggested that we pay half the monthly loan payment for 3 months and then went back to our usual monthly payment, plus the half we had a break on for the following 3 months.

We had 2 phone calls from the bank after the first payment went out to say that we had not paid and this would go on our credit file. We explained the agreement and they agreed it was their fault that it hadnt been noted properly and it was ok and nothing would show on our file.

We now see that our files are showing late payments for the last two months and of course there will be a third month. We are very unhappy and have been into our branch to discuss the matter but they said that the arrangement would show on our files and just tell you to phone the loans people who as they sound as though they are situated in India they dont even understand what the credit file is! We have just been refused credit due to this and it is going to show up for months.

We are going back into the branch this afernoon to try and sort it out- any advise please!!!!!

Even if you have an agreement in place, they aren't under any obligation to mark the account as paid up to date.

The arrears reported on your file are a true reflection of the fact that you haven't met the contractual payments on those months.

They can flag the account with an "Arrangement" special indicator for the two months to let other creditors know that the reduced payments were agreed with HSBC, but they months can still show as late or unpaid.

Sorry to urinate on your bonfire, but that's just how it is

EDIT: Regarding an Arrangement flag, this appears differently depending on the credit reference agency. With Experian there is a special instruction indicator, and it is up to the lender whether they want to report the account as paid, unclassified, or unpaid for those months.

Call Credit report the months in an AP as unclassified.

Equifax don't class the month as paid or unpaid, but AP, which has a similarly detrimental effect on your creditworthiness as arrears.

izools

Bargain_Rzl wrote: »

I have a weird problem with Equifax which I hope somebody can advise me on.

I tried to take out a new Vodafone contract through mobiles.co.uk. It unexpectedly came back that my address could be verified with neither Equifax nor Royal Mail, and they cancelled my order immediately. I re-ordered; this time it came back that my address was not showing up on Equifax so the order would be delayed for 24 hours while the address was "registered". I'm fully expecting this is going to fail again.

Out of curiosity I went onto the Equifax website and went through part of the application for a £2 credit report, to see what was showing on their database. Anyway, I was very surprised to discover that every other flat number in my building is listed on their database, but not mine (and I'm Flat 1!)

It is a newish build (2005) and I've lived here since 2006. Was on the electoral roll within a month, and have never had any problems getting credit here before (have mortgage, perfect payments record, am in long term full time employment with a good wage, etc).

What can I do?

Call Royal Mail and ask them to update their database. Do you have a dedicated letterbox?

If you are listed on the postcode database, you need to call Equifax

Bargain_Rzl

izools wrote: »

Call Royal Mail and ask them to update their database. Do you have a dedicated letterbox?

If you are listed on the postcode database, you need to call Equifax

I have a dedicated letterbox in that the postman comes in through the communal door and there are then separate boxes for each flat.

I've looked on the Royal Mail postcode finder and can find my specific flat number without a problem. Is this the same database?

And does Equifax have a contact phone number? All I can find on their website is a postal address.

Thanks for your help!

izools

Equifax - 0800 7839421 (Business) - say you want to speak to someone about your personal credit file and they'll pop you over to Residential.

Saves having to use an 0870 or 0844 number

Bargain_Rzl

Nope - that number doesn't work (as in "The number you have dialled has not been recognised").

Thanks for the help but... what's the 0870/0844 number?

izools

Grr they closed the loophole dammit!

0844 335 0550

Don't think they're open now.

Bargain_Rzl

Thanks - that's great! You're right that they're closed at the moment, though. Mon-Fri 9-5 only.

Really appreciate your assistance and will call them back Monday. (Spoke to a nice lady at Royal Mail who confirmed that my flat DOES exist, btw...)

izools

Happy to help. I had a similar issue with Equifax when I moved in September, took a few phone calls and some chasing up but got rectified after about a fortnight

notmyrealusername

I recently completed an IVA by way of full and final settlement and have set about cleaning up my credit report.

Equifax had 3 x Max Recovery Accounts (2 x Barclay card & 1 x Barclayloan) which were showing as defaulted. I wrote to Max recovery requesting that they mark the accounts as settled/satisfied, they replied very promptly and said that they would update the CRA's.

I have just checked my Equifax report online and rather than being updated as settled the accounts have disappeared off the report completely! There are other Max Recovery accounts on the report (Capital One & HBOS) which were showing as settled on the first report and have not changed.

Obviously this is positive for me ie the delinquent settled accounts not showing, but was wondering whether this is normal. Might they add the data in the future or is it a case that if it's not on there now they are unlikely to report in the future?

pennyfarthing1971

I have just checked my experian report and it says that i have a very poor rating of 523. Weirdly though it says i have twenty six accounts when i only have 6 and all of these are satisfactory (in green) so why is my score so bad?