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

CannyJock

Money_Penny wrote: »

Hi - I have quite a big credit file with lots of defaults on it.

Basically I had quite a few outstanding debts and I left the country for the last 4 years and just got back about 6 months ago. So I left all the bills and debts behind. On my credit file they are all shown as defaults.

Is there anything I can do to start to help rectify this? I have a basic bank account with Nationwide, recently applied for a contract mobile phone and was refused and about 2 months ago applied for a current account with RBS and was accepted then 2 days after the acceptance sent a letter closing the account.

Any help would be greatly appreciated.

Wait until the defaults have dropped off your account - 6 years from they are settled.

If you've just applied and been declined, wait 3 months then apply for a sub-prime card. Look at the sub-prime thread for more details.

belly2000

CannyJock wrote: »

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.

Hi Guys,
In regards to the above. I sent a letter to Lloyds TSB. I found the original letter from Lloyds TSB (2007) when they put me on a repayment plan - It never mentioned anything about affecting my credit rating - so I mentioned this in my letter. Also I mentioned that they have never contacted me in the last two years plus regarding this account to check my financial situation or to advise me that it's having a negative effect on my account. Basically they forgot about me!!! I also mentioned that if they removed all references to arrangement to pay from my credit files, I would be able to lend money from family and start paying the interest again.
I recieved a letter back from hem saying they were not prepared to remove the "arrangement to pay" from my credit history, never mentioned the original letter (no references to affecting credit) - just said I was running my account outside the original terms and they have a responsibilty as a lender to advise other lenders. Also they said we have noted that we have continued to accept reduced payments which has benifited you. (Kop out I believe - as I said they forgot about me - no contact in three years!). Also without asking my financial situation - they've started added the interest again - once again this points to them forgetting about me. DO you advise me to carry on and try to get it removed??
Thanks in advance.

BugsyBrowne

belly2000 wrote: »

Hi Guys,
In regards to the above. I sent a letter to Lloyds TSB. I found the original letter from Lloyds TSB (2007) when they put me on a repayment plan - It never mentioned anything about affecting my credit rating - so I mentioned this in my letter. Also I mentioned that they have never contacted me in the last two years plus regarding this account to check my financial situation or to advise me that it's having a negative effect on my account. Basically they forgot about me!!! I also mentioned that if they removed all references to arrangement to pay from my credit files, I would be able to lend money from family and start paying the interest again.
I recieved a letter back from hem saying they were not prepared to remove the "arrangement to pay" from my credit history, never mentioned the original letter (no references to affecting credit) - just said I was running my account outside the original terms and they have a responsibilty as a lender to advise other lenders. Also they said we have noted that we have continued to accept reduced payments which has benifited you. (Kop out I believe - as I said they forgot about me - no contact in three years!). Also without asking my financial situation - they've started added the interest again - once again this points to them forgetting about me. DO you advise me to carry on and try to get it removed??
Thanks in advance.

Seems there are a lot of people trying to get defaults & arrangement to pay's off their credit report,i personally don't think the banks should take them off unless its the banks fault,but generally if you do fall behind on payments etc and your credit file is shot for 6 years,it is a lesson learnt..

annagib99

Hi,
I have just checked my credit score on Experian and it is 'very poor' (441) which has shocked me.
I have 21 records:
3 mail order, £0, £50 & £21 (credit) - all satisfactory
1 Loan £158 - now paid but not updated - satisfactory
Current Account £1400 - 1 payment late (???)
Current Account £0 - satisfactory
Current Account £21 - satisfactory
Egg £265 - satisfactory
Santander £947 - satisfactory
Mobile Phone - satisfactory
Current Account £0 - satisfactory
Barclaycard £5,326 - satisfactory
Nationwide x 2, MBNA, citi, Yorkshire Bank, Halifax, HSBC, Co-op all £0 - satisfactory

Available credit £9,444
41% of total credit used
1 Account overdue
7 missed or late payments

I dont understand why my rating is so poor. Do I need to close some accounts? This months Barclaycard payment bounced but I paid it within 7 days as soon as I realised. I am aware that my 0% with Barclaycard is now going to be gone which is why I have started looking at my credit score as I want to move the balance to a 0% card. This is the first credit card payment I have EVER missed. The other missed payments are on a Next mail order account, and one on my HSBC current account - which I dont understand at all.

Can anyone offer me any advice? :eek:

vconfused483

Hi,

I recently applied for my first credit card at the age of 23. I have a bank account i have been with for over 10yrs. I have had the same address for 10yrs. I have an overdraft with by bank account that I have had for nearly two years and i haven't gone into it yet. I am technically still a student but I have a guaranteed graduate job starting next year.

I have a mobile phone account, which i have had for 6 yrs or so, paid by direct debit in full every month. I have never defaulted on it.

I took out a monsoon store card 2yrs ago, paid it off immediately and cancelled it almost immediately as I didnt' want it anymore.

When i applied (online) for the Tesco Clubcard Credit Card I was accepted but was only given a credit limit of £250, which I saw no point in taking on. I am only getting the card for absolute emergencies when I go travelling for a while, and if I need to put down a rent deposit when I return (as I will not have my first wage packed for a month)

I am confused as to why i was given so little credit.

The only reason I can figure is that one of my parents was made bankrupt over 5yrs ago but has since been cleared (the 3yr rule) and generally doesnt have a good credit history.

Just because my address is the same as theirs, does it mean i have been judged on my parents behaviour? Are credit card companies allowed to do this?

harryhound

Does this read:
I am a student living at home, presumably with a student loan and no job?
I'm thinking of going travelling before taking up a job offer that only I know about. (From what organisation?)
I have had a proper bank account since I was 18?
Each month I have paid my mobile phone contract?
I have a Tesco card, with a credit limit of 250 quid, but I've not bothered to use it?
Why am I not recognised as good credit risk??

Step one. Use the Tesco card every month and pay it on time.

cheshirepirate

Hi all,

I have a strange question.

My credit file has NO credit searches on it in the last 12 months (As I have a 3 year old default and didn't want to search for credit)

What is the best way to get credit searches on file without getting the rejection (Just an exercise as I don't want credit but wondering if I had a few searches my report would improve?)

TIA

CP

izools

0 searches will be an absolute asset to you. Keep it up. Don't apply unless absolutely vital.

You're on to a winner having such a good ability not to apply, every single search you make will have a negative impact on your credit rating and having 0 previous searches will have a positive impact offsetting the negative impact the default is having Don't balls it up by "get searches on file"!!

boczkowski

Hi there, don't use this forum much but need a question answering.

Wifey works in public sector, therefore pay frozen for next 2 years (thanks ConDem).
I became ill/disabled in 2005/6 and haven't worked since, but, am on the mend and am thinking of going into part time work to make up the 'deficit' created by pay freezes & VAT rises and a child starting school in September 2010.

Prior to meeting my wife I was a student and moved around a fair bit, probably accruing small debts in relation to things like phone bills etc here and there, thinking 'I'm moving - it's only £50 (or whatever) - it doesn't matter'.

So, what I'd like to know is, if I check my files at Experian and Equifax, will that plant my new address on their databases for all and sundry to see?
I'm looking at jobs in banks (as I used to work in High Street banking in the 80's/90's) and they will most likely perform some sort of credit check.
What I want to do is check the files first and work out whether it is worth applying for these types of jobs, or should I try another line of work that does not make this kind of check upon application.

Anything useful in this are would be very welcome.
I'd had a quick trawl of this thread and will search more broadly after reading this...moneysavingexpert.com/loans/credit-rating-credit-score

(I can't post links yet - stick 3 W's and a dot in front of that^^^)

cheshirepirate

izools wrote: »

0 searches will be an absolute asset to you. Keep it up. Don't apply unless absolutely vital.

You're on to a winner having such a good ability not to apply, every single search you make will have a negative impact on your credit rating and having 0 previous searches will have a positive impact offsetting the negative impact the default is having Don't balls it up by "get searches on file"!!

Not according to Checkmyfile website

There are three basic types of searches recorded on your credit report, a credit application search, an enquiry and an audit footprint. Only credit application searches are seen by lenders, so that they can make an assessment of how ‘credit active’ you are. There are lots of myths about the problems caused by having several credit application searches recorded on your credit report. Certainly, many searches within an hour or two can indicate a possible fraud, and dozens in a month can indicate financial desperation, but up to about 12 searches on file in a year is perfectly normal and is expected. Very low levels of searches can tell lenders that you are not very credit active, so they may not be so willing to lend to you.

Any suggestions?