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

emmadragon

Does any one know why some companies post to one credit company and not the other?

I have a mortgage with the Chelsea Building Society and it is shown on my Experian report. I have then logged onto my Equifax report (eventually, but thats another story!!!) and it is not there, I've contacted them and they have said that the Chelsea is not a company they deal with. So if someone checks my Equifax report (like my recent mortgage application with another company) there was no sign of my 4yr mortgage paid each month in full! How can this be the case?

mynameisclare

I just tried to sign up for the Equifax free trial. After putting my addresses in, rather than my credit report it gave me the message

"We have your information and you’re nearly finished in setting up your service. All we need now is to ask you some final questions. Call us on 0844 335 0550 (Calls will be charged at 5p per min) to complete your purchase today!"

Is that normal? What questions do they want? And how helpful to have a phone line that's only open Mon-Fri 9-5 :wall:

rd6821

Hello all,

If nothing shows up on the suggested credit checks to suggest why you wouldn't be accepted, what do you do to try and find out why you've been rejected for a credit card? Can you ask the provider?

izools

rd6821 wrote: »

Hello all,

If nothing shows up on the suggested credit checks to suggest why you wouldn't be accepted, what do you do to try and find out why you've been rejected for a credit card? Can you ask the provider?

If that's the case, it's best to start your own thread in the credit cards section and myself and several others can help you figure out what it is.

You'll want to give us information like, how much you earn vs. how much all your limits add up to vs how much you owe.

For example, I earn £17,250, I owe about £2900 and have limits of about £3200. So whilst my debt to earnings ratio is good, I am considered a risk because my cards are maxed out.

It also helps to know how long you've held your job, your bank account, and how long you've lived at your current address. If one has just changed, this is a risk factor and can cause applications to be declined.

Also whether you are on the electoral role and how long for makes a difference.

Other things like if you've just opened a new account, how many credit accounts you have, how old is the oldest one, etc.

There are a plethora of different factors taken into account when credit scoring that your report won't make immediately obvious to you.

And the main thing to remember is all creditors score differently - a given customers profile may be one creditors yes and another creditors no. Because they weight the various parts of your information with different importances.

No creditor will let loose their criteria, either.

emmadragon

mynameisclare wrote: »

I just tried to sign up for the Equifax free trial. After putting my addresses in, rather than my credit report it gave me the message

"We have your information and you’re nearly finished in setting up your service. All we need now is to ask you some final questions. Call us on 0844 335 0550 (Calls will be charged at 5p per min) to complete your purchase today!"

Is that normal? What questions do they want? And how helpful to have a phone line that's only open Mon-Fri 9-5 :wall:

I had the same, I had to send them copies of my passport and a recent utility bill. They just pointed me to the part of the website which explain how to do it (their ASK section) and it was the second to last question. I faxed my details as I couldn't scan them and the process was completed within 48hrs. Nightmare site though, it takes me at least 3 attempts to enter my username and password everytime I try and log in and also you have to call them to cancel! If you don't need to check your Equifax report I would recommend just sticking to Experian! So much more user friendly!

NUFCSean

I have recently tried to apply for finance to buy a new computer but have been denied due to not having a decent credit rating. I'm currently doing an apprenticeship and get paid £167 per week after some minimal deductions. The amount for the finance was £1100 and the payments were only £35 a month, which I can easily afford on my current wage. I have a phone contract, car insurance and a couple of small direct debits in my name coming out of my account.

My phone is £25 a month so can't see why I was accepted for that (I actually got that when I was on a lower wage) and not this which isn't that much more expensive.

I am 19 years old have lived at my current address for just 3 months, but was at my previous address for 4 years.

So my question is how can I improve my credit rating if I can't get any credit in the first place?

NMSE12

I recently did a £2 credit check with expedia, anyway everything was coming up clean... if i had any devbt etc it would showon there wouldnt it? i ask as a few years ago i was late without alot of payments but i have never had a CCJ. i have become paranoid that my credit is awful as had so many "we're sending to a debt agency" letters in past

anyway after doing the £2 report it shows my Debnhams card which has since been closed and my 2 bank acounts, all three have the number 00 next to them!

Anyway what does all this mean?

izools

NUFCSean wrote: »

I have recently tried to apply for finance to buy a new computer but have been denied due to not having a decent credit rating. I'm currently doing an apprenticeship and get paid £167 per week after some minimal deductions. The amount for the finance was £1100 and the payments were only £35 a month, which I can easily afford on my current wage. I have a phone contract, car insurance and a couple of small direct debits in my name coming out of my account.

My phone is £25 a month so can't see why I was accepted for that (I actually got that when I was on a lower wage) and not this which isn't that much more expensive.

I am 19 years old have lived at my current address for just 3 months, but was at my previous address for 4 years.

So my question is how can I improve my credit rating if I can't get any credit in the first place?

The reason you weren't accepted is you don't have any credit history from the sounds of it.

Your mobile phone contract isn't a credit agreement, rather it's an airtime agreement (not regulated by the consumer credit act) so creditors don't really pay attention to that on your credit file. Doesn't mean much unfortunately.

The direct debits and car insurance set up won't help your credit rating as they don't appear on your credit file. They may help your internal account score with your bank, but that's as far as it goes.

Also the fact you've recently moved will count against you. Are you on the electoral role? If you aren't, get registered sharpish (absolutely before 8th August).

Finally, if you want to be approved for credit in future, you need to start building some credit history now. You'd be best off getting a sub-prime credit card or two. Those that I'd recommend applying for are:

Capital One Classic
Vanquis
Barclaycard Initial
Aqua Card

These all carry high interest rates so the best way to use these cards to build up a credit rating is to spend a little on them each month, and clear the credit card bills in full when you get the statement.

This way you won't pay any interest. If you use a sub prime card to spread the cost of a purchase over several months you'll pay over the odds in terms of interest.

Once you've held one or two sub prime credit cards for a year, keeping up with payments, you'll have build a solid start to your credit history and will be in a much better position to be approved for things like PC finance etc.

Oh, and finally, make sure you keep applications for credit to a minimum. Every time you apply a credit search footprint is left on your credit files, and more than two or three searches in a six month period can make it appear that you're desperate for credit and cause you to be declined irrespective of the rest of your credit history.

Good luck

curtisjones1

I just checked my credit score on experian and its a 'poor' 694. I have never taken out any credit and have no negative things affecting my credit. Is this because i have virtually no credit history? thanks

izools

curtisjones1 wrote: »

I just checked my credit score on experian and its a 'poor' 694. I have never taken out any credit and have no negative things affecting my credit. Is this because i have virtually no credit history? thanks

I would imagine my last post just above yours applies to you, too