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

dy2k

Rejected for my first mortgage:(, I'm in great need for some sound advice! Needless to say, I have been incredibly naive during this whole 'home buying' process. Saved a sizeable deposit for a decent loan but failed to check my credit rating! After being rejected, I went to check my credit score on experian and I was astonished to find my whopping score of 452 - putting me in a 'very poor' category.

I realised that I made too many credit applications in a very short space of time, three in fact on the same day, and two more few months prior to that:(. Having read some of the posts, I now realise what disastorous effect this has had on my score. This is despite having no defaults, no late payments, no court order and also being on the electoral register. Only other downside is that I have moved home quite a number of times in the last three years (5 to be exact).

I currently have two credit cards and one store card with very little on them (less than 300 pounds) and I am thinking of settling one credit card and the store card. Also thinking about tidying up my linked addresses on my credit report as there are some errors. Does anyone know if this would have any effect on my score and when should I realistically expect my score to return to normal? Any other suggestions for improving my score?

Many thanks in advance.

dy2k

ceh209

I don't know if this has been asked before but this thread's far too long to check!

I haven't checked my credit report yet, no real need and wanted to let it get settled down after moving house.

I know you need to provide your last 6 years of addresses, however I've been a uni student in that time. Would you provide every address you lived at whilst at uni, or just give your parents address for that whole period?

• I always returned there during holidays and my bank account/overdraft/credit card/student loan all went there.
• I was on the electoral register in 2 places.
• I had utility bills/tv license/virgin media all at uni addresses.

Obviously just giving the one address will look more stable, but it's not entirely accurate...

Man_boy

Quick question. My credit card provider has just jacked up my interest rate. As my score is not great I was going to make an attempt at cancelling the card and argue back the old rate then pay it off. I know this does not effect my credit rating. However, I was wondering whether not cancelling the card and having a good crack at paying it off may have a better effect on my rating. This will of course cost me more money but if it increases my score it may be worth it. Any suggestions?

Cheers

hkwintrip

dy2k wrote: »

Rejected for my first mortgage:(, I'm in great need for some sound advice! Needless to say, I have been incredibly naive during this whole 'home buying' process. Saved a sizeable deposit for a decent loan but failed to check my credit rating! After being rejected, I went to check my credit score on experian and I was astonished to find my whopping score of 452 - putting me in a 'very poor' category.

I realised that I made too many credit applications in a very short space of time, three in fact on the same day, and two more few months prior to that:(. Having read some of the posts, I now realise what disastorous effect this has had on my score. This is despite having no defaults, no late payments, no court order and also being on the electoral register. Only other downside is that I have moved home quite a number of times in the last three years (5 to be exact).

I currently have two credit cards and one store card with very little on them (less than 300 pounds) and I am thinking of settling one credit card and the store card. Also thinking about tidying up my linked addresses on my credit report as there are some errors. Does anyone know if this would have any effect on my score and when should I realistically expect my score to return to normal? Any other suggestions for improving my score?

Many thanks in advance.

dy2k

i suspect im going to be in the very same boat as you before much longer - practically the same scenario. any advice welcome!

Helga14

Okay so I have (or definitely had) very good credit rating, checked with experian. I don't have any debts/always pay on time/ have a mortgages well 3 on the same property as i did shared ownership but now own 100% that a building society has given me/only a few streams of credit available etc, on the electoral register.

However my bf has now moved into my flat and I just put him on the electoral register with me. He doesn't have a good credit score. I'm not sure of all the facts but i know there are debts, late payments and maybe a ccj. I'm going to help him get it all sorted and it is much better now. However how can i stop my credit file being linked to his? How likely is that we will be linked?

I don't think my credit was linked to a previous bf who i lived with for over a year. Also i think this may be the one... if we married i'm thinking there is no way not to be linked?

Advice from those who are mismatched with credit rating in a relationship or anyone who knows would be gratefully received

walshy.walsh

the only way you would be linked, is if you had a financial product together. simply living at the same address, or even being married has no bearing. HTH

Helga14

thanks that is good to know. I won't be doing anything financially together.

Lizmo_2

Oh dy2K - I feel your pain!! I'm in a similar first mortgage boat! someone please help - i'm so confused!

I have always been so careful with money and assumed I would have a good credit score. I have got an overdraft and two credit cards but always pay them off in full every month. :A! I have now applied for my first mortgage and been rejected! I went and checked my credit report and Experian don't hav details of any of my credit cards or store cards so I have a bad credit score on the grounds I have no apparent credit agreements. Experian told me it's because I pay them off in full every month but this seems so unfair that I can't get a mortgage when I am such a responsible borrower! :mad: I have checked the address (lived there for 8 years and all statements sent there).

Any advice would be amazing - thank you!

mancdude

I took out a loan in my name for my sister back in 2004 and have been under the impression she's paid it since.

My credit record has recently been updated with a 'settled' account, whereby no payments were made, and it has one default on it dating back to May 2005.

1) Will this debt be statute barred when it reaches 6 years?
2) I don't understand how it's 'settled' if it's never been paid - will it be removed from my file after 6 years from the default date?

incesticde

incesticde wrote: »

(Sorry if this question has been asked before , I did do a search but nothing came up)

I'm re-building my credit record up using a Barclaycard initial, my limit is £400 and I'm re-paying it in full monthly.

Should I be keeping my monthly balance to a certain percentage of the credit limit? Should I be maxing or just a small amount each month? which one is better?

My credit limit was doubled to 800 a day after my sixth payment cleared (without me requesting it) :j

APR still a shocking 27.9% though! (not that they'll make a penny out of me! :rotfl:)