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

CannyJock

candiinoodles wrote: »

i dont want to take out any loans, but i need to open a small business account for an existing business im taking over from my parents, although im aware that overdrafts usually come with the account i was wondering how good the credit check have to be to be sucessful? I just come out of being a student and started a new job and i do have students debts like use of their interest free overdraft, a few storecards that i have been paying on time all the time, even though i dont use them very often. my score comes out about 640-670 which is suppose to be an average? im panicking about this a lot, is there any way to know whether this is good enough to open the account?
And does banks just see the credit scorenwhen they assess the application? or can they see the entire credit history u have?

Student loans don't appear on your credit report, the rest will.

The scores you've had mean nothing, hopefully you didn't pay for them. The banks will work out their own score for you - and they'll see your full credit history as it is if you apply for a personal account.

Any time I've opened a business account, they've never searched my personal credit report (done through LTSB). Suspect you're worrying over nothing

gabriella90

Hi i've been on the DFW board but you lovely people might be able to help. So here the crack Hi all,

I have been on a DMP for 2 nearly 3 months and although a little bit early i thought i'd check one of my credit files ( Equifax)

I have 3 creditors Barclaycard, Virgin and RBS. i'm on a DMP with the CCCs and all have accepted.

My BC and Virgin accounts have been updated and have AP in the box (arrangement to pay) no defaults, no late payments, no missed payments on all 3.

My question is in let say 3 yrs time i've been paying my DMP every month and AP is marked for each month and no payments have been missed how is this viewed by other lenders eg Mortgage company etc??

Many thanks

belly2000

Hi Guys,
Wonder if you could help me out on this one. I've heard a number of people getting defaults removed. My question is can it be possible to get an arrangement to pay removed from your account? Reason being is I have this on my account and it's not good for my credit history - It's with Lloyds TSB Gold card. For the last 24 months I've been paying a payment but with no interest added. I know I'm on an arrangement to pay (i.e - no interest added) but can't remember signing anything, so even though my last two years of statements would show no interest added, is it still possible to get it removed if the right documentation wasn't sent/signed?
Thanks in advance.

SusieT

Not sure how to go about this, I am wanting to be free of all credit card debt and am selling my house to downsize which will facilitate this. I was made redundant 2 years ago and cannot find a job that will allow me to pay the minimum amount on the cards and pay the mortgage + loan. My family are helping by paying a fraction over the minimum on the smaller balance cards, I am paying the mortgage, loan and a small amount on the other 2 cards.
I have 5 cards, 2 (that I am paying a token amount on) will soon have defaults, the other 3 (and mortgage + loan) are paid on time every month and are marked as satisfactory.
I will be moving about 50% of the current mortgage to my next property and repaying the rest, I will also have enough to pay the credit cards - BUT will not be able to repay them all in full. The 2 that will have defaults are the biggest, and I have already been offered a partial settlement of one at 30% and the other one has intimated that they would look at a settlement at the same sort of level.
These would be marked as partial settlement but I am not sure if they will remove the default - not something I want to ask at the moment as I think its best to do it when I have funds to pay them with.
So, my credit is pretty much trashed because of the defaults but how do I repair it so that its not all doom and gloom - will the partial settlements on the defaulted accounts help to make it look better or will they be pretty much ignored, and if I pay off the other 3 smaller ones in full then close them will that help at all? Also as I will be keeping the current mortgage albeit at a much lower level is it likely that this will this be affected by the fact that defaults are registered?
Sorry about the long post, I just want to get as much paid off as fast as possible and stay out of debt and although I may not want to use the credit ratings I still want it to be good.

CannyJock

belly2000 wrote: »

Hi Guys,
Wonder if you could help me out on this one. I've heard a number of people getting defaults removed. My question is can it be possible to get an arrangement to pay removed from your account? Reason being is I have this on my account and it's not good for my credit history - It's with Lloyds TSB Gold card. For the last 24 months I've been paying a payment but with no interest added. I know I'm on an arrangement to pay (i.e - no interest added) but can't remember signing anything, so even though my last two years of statements would show no interest added, is it still possible to get it removed if the right documentation wasn't sent/signed?
Thanks in advance.

Presumably they've given you interest free for the past 24 months as a goodwill gesture - do you think they'll keep doing that if you try and take them down the unenforceability route?

terriandaaron

Hi
I know there are loads of template letters around here for things but i cant seem to find the one we want.
My hubby has a ccj on his file from a debt collection agency, i think it relates to an old littlewoods (very?), account that was in dispute at our old address, we never had any commucation to say they were doing this and didnt know till we saw it on file.

we bought sofa that were rubbish, they was on some payment thing (20 weeks or similar) they came out and fixed it twice and then i asked them to come again and wanted new ones or it written off as we still owed half but couldnt get them to come again they kept mucking me About saying they couldnt contact that department by phone and would ring me but no one ever did, it was all in dispute, in the end we decided to withold paymnet (only on the sofas), we had gotten new ones by then anyway even though the old ones were under a year old. they knew why this was and agreed to it till the issue was resolved, but still sent it to a debt collection department, after a snotty letter they never chased it anymore,to be honest i should have looked into it more but had just had a baby and was just glad they left us alone and accepted the sofas were crap.

we moved a year or so later and no more, till like a few years later this ccj shows up for only £150, of the disputed amount from a debt collection agency With some digging we found out its related to this old account (was more than 150 owed though so strange),

Its been on there a year, we didnt notice till now, as we were checking it after being offered silly apr on a car loan(another issue in itself ~ still need the car), what do we do next to sort it out?

CannyJock

SusieT wrote: »

Not sure how to go about this, I am wanting to be free of all credit card debt and am selling my house to downsize which will facilitate this. I was made redundant 2 years ago and cannot find a job that will allow me to pay the minimum amount on the cards and pay the mortgage + loan. My family are helping by paying a fraction over the minimum on the smaller balance cards, I am paying the mortgage, loan and a small amount on the other 2 cards.
I have 5 cards, 2 (that I am paying a token amount on) will soon have defaults, the other 3 (and mortgage + loan) are paid on time every month and are marked as satisfactory.
I will be moving about 50% of the current mortgage to my next property and repaying the rest, I will also have enough to pay the credit cards - BUT will not be able to repay them all in full. The 2 that will have defaults are the biggest, and I have already been offered a partial settlement of one at 30% and the other one has intimated that they would look at a settlement at the same sort of level.
These would be marked as partial settlement but I am not sure if they will remove the default - not something I want to ask at the moment as I think its best to do it when I have funds to pay them with.
So, my credit is pretty much trashed because of the defaults but how do I repair it so that its not all doom and gloom - will the partial settlements on the defaulted accounts help to make it look better or will they be pretty much ignored, and if I pay off the other 3 smaller ones in full then close them will that help at all? Also as I will be keeping the current mortgage albeit at a much lower level is it likely that this will this be affected by the fact that defaults are registered?
Sorry about the long post, I just want to get as much paid off as fast as possible and stay out of debt and although I may not want to use the credit ratings I still want it to be good.

Presumably from the detail you've give you've already looked at your credit report to see how the cards look at the moment. As part of the negotiation on the partial settlements, you can always ask that they remove the account from your credit report, or have it marked as paid in full with no balance outstanding - they can refuse, but you can ask all the same.

Have you got your new mortgage secured yet, or at least discussed it in principle with a provider? Obviously better to do that before the defaults and partial settlement appear.

Not sure about closing and settling the cards - close and settle a couple maybe, but I'd keep at least 1 and use this on an ongoing basis.to continue building a positive payment history - will be easier for you to keep an existing card to rebuild your history than applying for a new one with a few blemishes on your report

SusieT

I have only looked at experian, but I would not expect the others to be much different.
I will ask if they can be marked paid in full but I doubt that it will happen - removing them may be easier though, I will try that when I get the money to pay them off, thanks a lot, that was not something I was aware may be possible

I am not getting a new mortgage, I am keeping the one I already have and will be transfering it to the new property, it's in a few bits and I intend to pay off one of them thats interest only and just transfer the other sections across so its not going to be a new application just a change of property - hoping that makes a difference.

I will keep one card and try to use it a little bit then pay it in full each month and do a rebuild that way.

On the plus side, one of the cards that is behind have accepted the token payment so that may help to rescue something as well

Thanks for taking the time to reply :beer:

CannyJock wrote: »

Presumably from the detail you've give you've already looked at your credit report to see how the cards look at the moment. As part of the negotiation on the partial settlements, you can always ask that they remove the account from your credit report, or have it marked as paid in full with no balance outstanding - they can refuse, but you can ask all the same.

Have you got your new mortgage secured yet, or at least discussed it in principle with a provider? Obviously better to do that before the defaults and partial settlement appear.

Not sure about closing and settling the cards - close and settle a couple maybe, but I'd keep at least 1 and use this on an ongoing basis.to continue building a positive payment history - will be easier for you to keep an existing card to rebuild your history than applying for a new one with a few blemishes on your report

belly2000

CannyJock wrote: »

Presumably they've given you interest free for the past 24 months as a goodwill gesture - do you think they'll keep doing that if you try and take them down the unenforceability route?

Thanks for the reply CannyJock,
The thing is I want to pay the interest now - I don't want to carry on interest free. So I was wondering if there is any mileage in trying to get it removed. i.e - Is it possible? And how do I go about it?
Cheers

CannyJock

belly2000 wrote: »

Thanks for the reply CannyJock,
The thing is I want to pay the interest now - I don't want to carry on interest free. So I was wondering if there is any mileage in trying to get it removed. i.e - Is it possible? And how do I go about it?
Cheers

Never does any harm to try. You'd basically put it in writing and ask them to confirm in writing if it was possible.

If you were in a position to clear the balance in full or BT it elsewhere it might put you in a stronger negotiating position.