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

gfunk_2

Just done a credit report with equifax but don't really understand it!

Hi, Just done a Credit report with equifax after having cleared debts and such, but a few of them are not showing as settled. How do i change this, will it change if i leave it a month or so? does it change automatically?!

Sorry for the rapid fire of questions but its got me in a panic that i have red danger stuff on there (4missed payments to t-mobile from nov 09-feb10 which i settled around april and thought i closed) when i am now debt free!!

I also payed off a lloydstsb loan, virgin (mbna) credit card, Very account (which i'm guessing is the 'Mail Order Agency from Shop Direct Finance Company Ltd') but i'll admit that was only a week and a half ago i paid all that off... am i being Jenny to hasty?!

Any advice?!

Hi, posted this in the wrong place previously i think! Any advice? I find the whole thing a bit confusing! Got a score from them while i was at it of 396. Although from what i have since read, that is worthless?!

DancerKaz

My husband's daughter who is young (21), living with family and trying to get a loan for a car but has no credit rating at all. Can anyone advise on my best course of action i.e. quickest to enable her to apply for a loan but without paying ridiculous amounts of interest?

Thanks in advance.

mjb197298

Im after abit of help here as I dont know what to do.

Myself and my husband are wanting to get a mortgage in about 6 months time. We have spent the last few months checking our credit files (all three) and paying off as much debt as we can. My husbands file is now excellent and credit score also. However, mine is not, it is poor. This is because of a OUSBA account that I had last year when I fell behind with payments, due to them not setting up the dd that I sent back to them. I received no correspondence from them to let me know that the account was in arrears but I also failed to check that the dd was coming out (I have had a OUSBA account since 2004 and never had a problem before). I noticed that the account has a 5 and 6 for late payments and am thinking this is what is causing the bad score. I have written to them to explain but they are saying they sent two letters to me,(but I didnt received either of them), and are refusing to change the details. However, as soon as I found that I was in arrears I paid the full amount off straight away. I have put a notice of correction onto the account. Is there anything that I can do. Me and my husband have a joint bank account and will be applying for a joint mortgage!!

BugsyBrowne

mjb197298 wrote: »

Im after abit of help here as I dont know what to do.

Myself and my husband are wanting to get a mortgage in about 6 months time. We have spent the last few months checking our credit files (all three) and paying off as much debt as we can. My husbands file is now excellent and credit score also. However, mine is not, it is poor. This is because of a OUSBA account that I had last year when I fell behind with payments, due to them not setting up the dd that I sent back to them. I received no correspondence from them to let me know that the account was in arrears but I also failed to check that the dd was coming out (I have had a OUSBA account since 2004 and never had a problem before). I noticed that the account has a 5 and 6 for late payments and am thinking this is what is causing the bad score. I have written to them to explain but they are saying they sent two letters to me,(but I didnt received either of them), and are refusing to change the details. However, as soon as I found that I was in arrears I paid the full amount off straight away. I have put a notice of correction onto the account. Is there anything that I can do. Me and my husband have a joint bank account and will be applying for a joint mortgage!!

You will never find out what score a lender will score you.
If you did get your credit score's from any of the CRA's remember 1 thing they don't lend money,so your score from these would not come into it when you apply for a mortgage.

Mortgage people will have their own credit scoring model.

sunny_skies

Hi guys, I'm really sorry if this is a bit of a silly question. I'm a worry wart. For the past few months I've been worrying 24/7 how we were going to get a good deposit together (we earn good salaries, just the amount of time it would take to build up our deposit) - family have stepped in to help (I already had 5%). However, all that worrying about deposits meant I totally forgot to worry about credit history!

I'm sending our details to our mortgage advisor tomorrow and am mega-worried, not because I think there's anything wrong but I just don't know what to expect.

Are there any "good signs" I could identify that might indicate good credit history?

Some things I'm concerned about:
2 "missed" payments - not actually too sure what is meant by "missed". I had one, as a result of the store not setting up the direct debit properly as requested; they admitted error and said it wouldn't affect the credit rating.
Hubby had one, as a result of his online-only bank account not sending him log-in details even when he called 3 times to request it - again they said it wouldn't affect credit rating (he asked 3 times because ... you guessed it, I made him, I was worried!)
Both payments were made when we received the letters.

We've lived in this house over 1 year and before then lived over 2 years. Is that enough time?

I'm a South African with indefinite leave to remain, hubby is British.

Those are my only concerns ... we both have credit cards and have had a loan plus have overdraft facilities, so we have history. I did the quick test here on moneysavingexpert and I got "good", but when I indicated missed payments (as above) I got "weak".

Any advice? Besides cut out the stress and be patient? Honestly if I'm panicking this much at this stage how am I going to survive the rest of the house-buying process (if we get there!!)? Now that I know the deposit isn't going to be a problem ... do you ever get the feeling something just isn't going to happen for you? :O

Crocodile3

I have been reading through posts here and the main article. I understand that having too many credita cards can hurt my credit rating, so I cancelled a credit card I never used.

However, I also have 2 bank accounts I hardly ever use. Do bank account matter as well for the credit rating? In essence these can be in credit(overdrfat) as well? Shall I cancel these as well?

(I am doing this, so I can apply for a mortgage later)

geordie_ben

Crocodile3 wrote: »

I have been reading through posts here and the main article. I understand that having too many credita cards can hurt my credit rating, so I cancelled a credit card I never used.

However, I also have 2 bank accounts I hardly ever use. Do bank account matter as well for the credit rating? In essence these can be in credit(overdrfat) as well? Shall I cancel these as well?

(I am doing this, so I can apply for a mortgage later)

I've always thought it was have as little as possible, but use what you have.

I have a main bank account (bills), a secondary account (spending) and one credit card. I use all 3 all of the time.

If you dont use the accounts then I'd say to close them down. And if not close them down then certainly get rid of the overdrafts if you dont touch/need them

Too much credit available to you can be a bad thing.

Firekid

Hi, just been refused for a further advance on my mortgage due to my credit rating, i think this might of been due to being in 3 overdrafts at the time and also having an outstanding payday loan. I've paid of the payday loan and also got out of 2 of my overdrafts. Will this show up on my credit rating instantly or will it take a while. Would it be worth my trying again now that i have got out of the debt i was in?

Thanks for you time.

geordie_ben

Firekid wrote: »

Hi, just been refused for a further advance on my mortgage due to my credit rating, i think this might of been due to being in 3 overdrafts at the time and also having an outstanding payday loan. I've paid of the payday loan and also got out of 2 of my overdrafts. Will this show up on my credit rating instantly or will it take a while. Would it be worth my trying again now that i have got out of the debt i was in?

Thanks for you time.

No, defs dont try again, applying, getting refused, trying again takes a massive hit on your credit file

You should wait about 6 months between applications, and it'll probs take a few months for your file to be updated fully anyway

My advice would be patient and do everything you can to boost your score.. have a read of this for more tips

cjstan_2

Thanks for very interesting posts and their replies.

In May this year I returned to Britai after living in Turkey for the last 10 years.
Today I have been informed that I am a bad credit risk because I have no credit history after applying for a loan for a car.
The company I applied to says that I must have at least 3 years residence before any credit transaction decision can be given.
I have a bank account which is always in the black, but that has only been running for 8 months.
Any ideas how I can re-build my credit rating if I cannot obtain Credit because of the 3 years residence time required by the lenders. I am on the electoral roll, and, I am retired. Thankyou in advance for your replies and ideas, if any