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

DEBTMONKEY1A

Checkmyfile shows the payment history for my cashplus creditbuilder & also reporting for my yorkshire ban a/c....all good! Credit score is below (686) national average but hope that will be improved upon....!

Anyone know about Capital one (the higher apr one)...wen through the on-line process-no decline-7 days for additional checks-credit card agreement attached-does this mean its a yes??? If it was a decline would it have been immediate on-line?

geordie_ben

DEBTMONKEY1A wrote: »

Anyone know about Capital one (the higher apr one)...wen through the on-line process-no decline-7 days for additional checks-credit card agreement attached-does this mean its a yes??? If it was a decline would it have been immediate on-line?

Sounds positive, when I've applied for cards in the past declines have shown on the spot... this doesnt mean to say they wont do the checks and decline you tho. Keep your fingers crossed from reading your posts is sounds like you're on the right path. Just remember to budget properly and pay your most expensive debt (highest apr) off first

DEBTMONKEY1A

Anyone know about Capital one (the higher apr one)...wen through the on-line process-no decline-7 days for additional checks-credit card agreement attached-does this mean its a yes??? If it was a decline would it have been immediate on-line?

I'm presently trying to build a credit rating...& this is the last one I'm applying for for the next year (or indeed any other credit). My info...electoral roll last 1 1/2 yrs, 4 yrs + at present address, no ccjs/defaults/missed payments, f/t job for last 3 months on fairly good money, no linked addresses, accepted for vanquis/aqua (no reporting on them on file yet), have a standard & not basic) y/bank a/c since last August & a creditbuilder (mycashplus) agreement since last August-both of which have been reported positively on my equifax/callcredit files. No linked addresses.....

Also will it be a positive thing to have a SECOND pre-paid mastercard with credit builder on the file? Thinking of doing this to have a card me & g/f can use solely for food shopping-so will help with budgeting anyway. Any ideas guys? Posted this in another section-apologies in advance-not sure of best place to put it!

deefadog

Hi,

If you miss a credit card payment by a few days, does that go against your rating?

Thanks

Zack1

deefadog wrote: »

Hi,

If you miss a credit card payment by a few days, does that go against your rating?

Thanks

Depends on the company and dates involved. Internally it probably will count against you - but if you've paid by the time they update your credit file it's often marked as paid on time externally - certainly has been when I've missed card & o2 payments

Suppose it's luck of the draw, but I'd imagine a few days would almost always be fine externally

deefadog

Thanks! We did not get a warning letter or nothing, so fingers crossed!

Thanks again

DEBTMONKEY1A

Any ideas anyone...? Thanks!

chexum

DEBTMONKEY1A wrote: »

Anyone know about Capital one (the higher apr one)...wen through the on-line process-no decline-7 days for additional checks-credit card agreement attached-does this mean its a yes??? If it was a decline would it have been immediate on-line?

Noone can really tell, it just means it has been referred because the computer couldn't decide - now a person will need to.

DEBTMONKEY1A wrote: »

Also will it be a positive thing to have a SECOND pre-paid mastercard with credit builder on the file? Thinking of doing this to have a card me & g/f can use solely for food shopping-so will help with budgeting anyway. Any ideas guys? Posted this in another section-apologies in advance-not sure of best place to put it!

It would be a new credit account of the type LOAN (for £59 paid back over a year). The advantage of this is one more "type" of credit account that you can prove you can handle well. The disadvantage is that there's a "fresh" account on your credit file, which means instability. There doesn't seem to be a point to add one more account of the same type. It also seems lenders are getting smarter to learn what this low value loan is.

All things considered, Cashplus creditbuilder may be good to have, but I don't see any point at all to have two of them.

UniqeNewYork

Went for a mortgage in 2007 and got turned down due to poor credit rating caused by my own stupidity in opening a 2nd bank account while a student maxing out £1500 interest free overdraft and planning on paying back when interest kicked in 3 years post-graduation. Stupid enough action but even more stupidly I promptly forgot about the account only to be well and truly reminded of it when mortgage app was rejected!

I settled the account immediately and for the past 3/4 years have an excellent record with immediate payments of small personal loan (now completed) and ensuring I always put some payments on my credit card every month and then immediately pay off at end of month. Just completed an Equifax credit report/rating in the hope my good behaviour would have caused an improvement and my score is classed as Very Poor - 254. Shouldn't it have improved!?

I've listed the Full Report (minus personal info) below in the hope I can get some advice: -

CREDIT AGREEMENTS

Good
You have 2 active accounts and 1 settled accounts on file at your current address. Credit grantors prefer that you have at least one or two accounts as part of your credit profile. Active accounts are preferred to settled accounts.

Excellent
Your oldest account is 8 or more years old. Credit grantors prefer to see accounts opened at least 3 years.

Very Poor
Your payment history shows that you have accounts shown to be defaulted. Credit grantors will view this negatively and you may have difficulty obtaining credit. This reflects accounts at other addresses.
Further Details
Current Account from Natwest
Terms 0 @ £ 0 (Monthly) Status Settled
Current Balance £ 0 Start Balance £ 0
Credit Limit £ 0 Default / Delinquent Balance £ 1,474
Start Date 07/10/2002 Date Updated 30/01/2009
Date Last Delinquent 10/07 Date Satisfied 03/11/2007
September 2007 - Defaulted Account
October 2007 - Settled

I've bolded Sep 2007 default as this is the only red mark on my file, seeing as it was settledOct 2007, over 3 years ago, should this alone be holding my rating back and is it correctly listed on the report?

Excellent
All payments on your accounts are up to date.

Excellent
Credit reference agencies are receiving periodic updates from your credit grantor(s) that reflect you have made payments on time in the past.

Excellent
You have no defaults.

ELECTORAL ROLL

Good
You are presently shown as registered on the Electoral Roll. You've been registered at your current address for 12 years. This is looked upon favourably by credit grantors.

SEARCHES

Excellent
You have had 0 search(es) for credit in the last six months. Credit grantors view more than one or two searches within six months unfavourably.

COURT INFORMATION

Excellent
You have no information in your credit report that indicates a Court Judgment or other public record information such as a bankruptcy in your name. Credit grantors view this favourably.

Any advice gladly received...

izools

I would say you certainly do stand a chance of approval for a mortgage with a credit file like that. You are right, a settled default over three years old should have less of an impact as long as the rest of your credit history is spot on - which yours appears to be.

Some lenders are more picky than others; who did you apply to? You might not have been declined as a result of the default but as a result of some other aspect of your profile pulling you down. Like how long you've been with your employeror bank, or some such.

EDIT: I notice you only have two active accounts. Is one of these a credit card or loan? I'm guessing not - probably bank account and mobile phone? The lack of recent history with a credit agreement may put a lender off giving you a mortgage as you haven't proved yourself credit worthy since the default.

If you don't currently have a credit card it's worth taking out a Capital One Progress mastercard (which I'm sure you'll get) to build proper credit history. After a year of running that flawlessly you'll be a much better candidate for a mortgage :beer:

EDIT: Reading your post again and looking over your score details again I'm not sure. You say you have a credit card? How long have you had it? is it still open?