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

Tixy

sunfug wrote: »

Hi, just joined this forum thanks for all the excellent information. We are trying to sort out our finances in order to buy a house (me for the first time my wife for the third) and are renting at present. My wife got her credit report from Experian (thanks for the free tip Martin!). To her surprise she was rated a poor credit risk apparently because of recent attempts to get another 0% credit card and to extend her OD.

We need to go through it in detail, but my question is how long does it take to re-build your credit rating?

We were hoping to try and buy a place this Summer but now I'm concerned. In the past she has never had any problems getting credit. Her ex with whom she bought the two houses (now sold) has a terrible CR. They split up in 2003 and she insists that there is nothing to associate herself with him financially, but I'm not so sure. They had a joint bank account and 2 mortgages together with all sorts of ducking and diving shennanigans going on that she only became aware of later.

Appreciate any advice. Thanks.

Your wife needs to look at her credit report (not the score or rating bit the main report) to see if under financial associations she is still shown as associated with ex - if she is then she needs to file a notice of disassociation as each of the 3 credit reference agencies. This doesn't happen automatically when accounts are closed.

Having a lot of searches close together can have a temporary negative on your chances of getting credit (as if you have a lot of searches lenders may consider you are desperate for credit). Its generally advised to try not to have more than 3searches in a 6month period.

You need to also go through her credit report and each credit account that shows on it and make sure it is accurate.

megescc

Hi - you say that foreign nationals who aren't on the electoral roll should provide proof of residency. What does this include?

Mary

Cherubchops

I need to cancel old cards that I no longer use, I understand that I need to write a letter to each lender, is there a specific template that I need to use? and what if I dont know olad account numbers etc, thanks

pinklady89

Hi,
I wonder if someone could help me. I have just checked my credit score today and in one day it has dropped from 744 to 611!! The only thing I can think of is that I was declined for a 95% mortgage, I have not applied elsewhere for a mortgage so why would it drop so much in the space of a day? I can't see anything obvious but now I am very annoyed that this has occured..can anyone shed any light on this? I have never missed any payments ect.
thank-you

Swiss_saint

Quick question I tried the credit checking tool thingy and used the same information both times except for one item.

5 years ago I had a CCJ but have a clean history of 5 years since with only 1 credit card, same address, various household bills, no loans, mortgage.

First time apart from the CCJ question which I answered yes to I got a poor rating.

Second time put the CCJ as no and got excellent.

At some point I will probably need to remortgage although as the tracker I have is better than current rates I am better off as it is.

So the question is even though I have 5 years of clean history and the CCJ was satisfied I am guessing that I will still probably have a hard time re-mortgaging? even though I have about 25% equity in the house.

Thoughts although again I think I will probably have to wait another year until the CCJ drops off.

andypr1976

Does anyone have any views on Natwest cards?

geordie_ben

Swiss_saint wrote: »

Quick question I tried the credit checking tool thingy and used the same information both times except for one item.

5 years ago I had a CCJ but have a clean history of 5 years since with only 1 credit card, same address, various household bills, no loans, mortgage.

First time apart from the CCJ question which I answered yes to I got a poor rating.

Second time put the CCJ as no and got excellent.

At some point I will probably need to remortgage although as the tracker I have is better than current rates I am better off as it is.

So the question is even though I have 5 years of clean history and the CCJ was satisfied I am guessing that I will still probably have a hard time re-mortgaging? even though I have about 25% equity in the house.

Thoughts although again I think I will probably have to wait another year until the CCJ drops off.

I'm sure CCJs drop off after 6 years, but I'm not 100% sure...

focus888

How easy is it to cancel the credit check service? Is it simply a matter of just ringing them and getting them to cancel the membership? They don't normally try and get one month's membership off you do they? Thanks

naijapower

megescc wrote: »

Hi - you say that foreign nationals who aren't on the electoral roll should provide proof of residency. What does this include?

Mary

I believe this includes any acceptable bills addressed to them

bcfc1710

Tixy wrote: »

Depends what is on your file to start with.

Usually shortly after you start a DMP your creditors will send out default notices and file defaults on your credit file (unless they have already done so). Defaults stay on for 6years and having defaults on file means that you almost certainly won't get any mainstream credit for those 6years. But as part of your DMP you agree not to take out new credit until your DMP is fully paid.

How long is your DMP predicted to last? If you pay off your debts before 6years from the default then the debts should be marked as satisfied defaults.

If you had any entries on your credit file such as gone away markers, then once you are paying creditors through a DMP these markers should be removed.

I have 4 defaults on file from 2005, so should they come off soon?

Also i have 4 barclays accound (OD, CC and 2 loans) they have all defaulted and eversheds have taken them over, i am paying eversheds on DMP but on my credit report all the barclays accounts say Satisfied?