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

Lister_2

Hi all,

I've been tidying up my finances and closing unused credit cards. I've just got a credit report and see that two of the cards are still showing as active, and one (Halifax) is even showing I have £50 in debt on there!

I closed them roughly a month ago. Anyone know how long it takes before you report is updated?

Thanks,
Lister

bathgatebuyer

I've got a similar situation with the Halifax. I think it should take a month or so, and if they don't, you should certainly write to them and ask them to ensure that they send details of the closure to the credit reference agency.

I'm certainly hoping that they do that quickly for me as settling a debt has a positive impact on credit score and I'm due to renegotiate my mortgage deal in a few months. Every little helps.

Moggles_2

JonBetts2004 wrote: »

My girlfriend's dad is not allowed to rent any part of the house due to an agreement in the mortgage. They apparently check the electoral roll every couple of years to check that this is not happening. If they see someone has been added that isn't a family member (such as me), they will ask my girlfriend's dad to kick me out.

But you are a family member, aren't you? Tenants don't normally live with their landlord's daughter.

I am on the electoral roll at my mother's address (where I just moved from). I take it, it is better to be on the roll there rather than not on it at all?

Phone/credit card companies normally use the electoral register to verify an applicant's ID electronically, so it's hardly surprising your applications were unsuccessful.

Lenders like stability, so best practice is to apply for credit facilities, where possible, before you move/change jobs/change banks. If you decide to submit a further application, it may make sense to use your mother's address. Most credit cards can be run online without the need for postal statements.

For tips to improve your chances of credit card acceptance, have a look at the *Credit Rating: how it works and how to improve it guide*, especially Martin's *Manage and Improve your credit score* article which triggered this thread

http://www.moneysavingexpert.com/banking/credit-rating-credit-score#improve

Moggles_2

Lister wrote: »

I've been tidying up my finances and closing unused credit cards. I've just got a credit report and see that two of the cards are still showing as active. One (Halifax) is even showing I have £50 in debt on there! I closed them roughly a month ago. Anyone know how long it takes before you report is updated?

Lenders vary in this respect as with everything else. The whole process (from the initial phone call ) can sometimes span a couple of months, so allow plenty of time.

If you have an excess of available credit, it's advisable to check your credit reports to make sure the a/c is marked "settled" before you submit a credit card application.

Btw, once you have your hard copy, the CRAs seem happy to answer questions over the phone if you quote your reference number. So if, for instance, you wanted to check that particular items had since been updated, there's no need to order further copies of your credit reports

JonBetts2004

Thanks alot for your help Moggles.

Shall I apply for a credit card linked to my mum's address (where I am still on the electoral role), and use that each month to start getting a good credit history? If paying it off in full each month, does that mean I will never get charged any interest, etc?

How do you think I should go about getting a mobile phone contract now then? My current account with Natwest is now linked to my current residential address, so using that account for a direct debit is pointless as I will always fail the credit check. Do you think I should open another current account (used solely for this phone contract) but use my old address as the billing address, which would then mean I will be verified on the electoral role and hopefully accepted for a contract. Only problem there is that on my credit file with Equifax, my old address is listed as a 'previous address' so having a current account linked to that address still would look dodgy.

What do you think? Would really appreciate your help again as I have no clue how to do this!

Only other option is having the phone contract under my girlfriend's name, etc, and just send direct debits each month to her account. But that way I don't build up my credit history!

Thanks, Jon

Moggles_2

JonBetts2004 wrote: »

Shall I apply for a credit card linked to my mum's address (where I am still on the electoral role) and use that each month to start getting a good credit history?

This may be worthwhile, in order to build a credit history.

If paying it off in full each month, does that mean I will never get charged any interest, etc?

As long as you make at least the minimum payment by the due date, you'll build a good credit history. If you pay the balance in full, you'll avoid interest charges too.

Btw, there's nothing to prevent you from being on the electoral roll at both addresses so, if I were you (whatever else you do), I would stay on the register at your family home

JonBetts2004

Thanks very much for the advice. I have just a couple more questions though!

This may be worthwhile, in order to build a credit history.

But wouldn't this look bad on my credit report, that I have an open credit agreement at my previous address?

Do you recommend any specific credit card for someone in my position? Is it better to get a card that offers the most credit, but then I would use very little?

Also back to the mobile phone contract for a minute: I guess the only way I can get a contract off my own back is to write a written request to someone such as O2, with a copy of my credit report and reasons why I should be allowed a contract with them. Surely if I suggest taking a deposit of say £200 from me at the start of the contract, they then have the security of knowing that I am likely to be a reliable customer? What are your thoughts on this? I don't think there's any other way I can do this without being on the electoral role at my new address, and I daren't go on the role for fear of my girlfriend's dad's mortgage company finding out. Even if we explained I am living here as part of the family, I doubt they'd believe it, and I don't want to ask them for permission to go on the electoral role because that would bring it to their attention.

Cheers

JimmyTheWig

Who is the mortgage with? Is it a reputable high street lender? Or some "dodgy" sub-prime outfit?

E.g. consider the impact of a local / national media story along the lines of "XYZ bank won't let me live with my girlfriend". Most established names wouldn't want that sort of bad publicity and may well be receptive to a sensible request.

I presume that you are living "as man and wife". I agree with Moggles that you are part of the family.

I think you need to tread very carefully. Some parts of some of your suggestions have hints of fraud in them. Now I know you're not doing it to be "fraudulent" per-se, but you are suggesting manipulating facts (and in some cases outrightly lying) for personal gain. I can totally see why you are wanting to do it, and from what you've said the blame lies with the mortgage company and not you, but I think you need to be careful.

JonBetts2004

JimmyTheWig wrote: »

Who is the mortgage with? Is it a reputable high street lender? Or some "dodgy" sub-prime outfit?

E.g. consider the impact of a local / national media story along the lines of "XYZ bank won't let me live with my girlfriend". Most established names wouldn't want that sort of bad publicity and may well be receptive to a sensible request.

I presume that you are living "as man and wife". I agree with Moggles that you are part of the family.

I think you need to tread very carefully. Some parts of some of your suggestions have hints of fraud in them. Now I know you're not doing it to be "fraudulent" per-se, but you are suggesting manipulating facts (and in some cases outrightly lying) for personal gain. I can totally see why you are wanting to do it, and from what you've said the blame lies with the mortgage company and not you, but I think you need to be careful.

I see what you mean. The only thing I want to do is live at this address with my girlfriend, and the reason I am worried about going on the electoral role would be that the mortgage company may want to kick me out if they feel it goes against the contract that my girlfriend's Dad has signed up to.

I don't know who the mortgage is with, I'll have to ask. I take it if they are a 'sub-prime outfit', it may be a harder decision to make?

You're right about it being fraudulent in a way, as everyone should be registered on the role at their current address. I feel if I register on the electoral role then another reason for doing it would simply be so I'm not breaking the law! Thank you all for your comments so far, it is really helping me figure this out.

JonBetts2004

Apparently the mortgage states that nobody other than family can live at the address as they can't be legally moved if the mortgage holder defaults. As I am not technically family, this could be a problem...