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

geordie_ben

focus888 wrote: »

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

As long as you're inside your free trial you should be ok

mynameisclare

focus888 wrote: »

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

It is easy to cancel - much easier than getting them to sign you up in the first place with all the ID checks!

I just cancelled my Equifax trial a couple of days ago, and she said because they "value their customers" they would give me a year's free trial of the email alert service. Don't know if they're doing that for everyone at the moment.

incesticde

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'd leave it for a year, even if you were to get a deal in the meantime it wouldn't be as good as you can get in a years time when your record is 'clean' (barring market factors of course).

Having a CCJ on your file is a massive hit to your credit score, I, like you, had a CCJ on my file followed by five years and 11 months of flawless credit history and my Experian credit score was 840 and 'fair'.

The CCJ drops off after six years (precisely at 2359 six years on from the day of the judgement in Experian's case).

That momentous day for me was yesterday, now my credit score is 999 (Excellent).

Just bide your time till your day comes up (and obv never get another CCJ/Default/Late payment on your record again!)

(P.S. I don't want any comments about credit scores being useless, I know that but I got them to see what the effect of the CCJ dropping off my file would have. I'm just trying to help the OP here)

BugsyBrowne

incesticde wrote: »

I'd leave it for a year, even if you were to get a deal in the meantime it wouldn't be as good as you can get in a years time when your record is 'clean' (barring market factors of course).

Having a CCJ on your file is a massive hit to your credit score, I, like you, had a CCJ on my file followed by five years and 11 months of flawless credit history and my Experian credit score was 840 and 'fair'.

The CCJ drops off after six years (precisely at 2359 six years on from the day of the judgement in Experian's case).

That momentous day for me was yesterday, now my credit score is 999 (Excellent).

Just bide your time till your day comes up (and obv never get another CCJ/Default/Late payment on your record again!)

(P.S. I don't want any comments about credit scores being useless, I know that but I got them to see what the effect of the CCJ dropping off my file would have. I'm just trying to help the OP here)

No your credit score with Experian is 999 a company that doesn't lend money so your so called 999 credit score is worthless I am afraid.

I know you said don't mention it so why do you, you obviously take notice of it if not you won't keep running on about it in your post.

shoegirl1974

Hi, never posted before so not sure how this all works??

I have a poor credit rating as I have a default registered.........i started checking my credit with Experian last year. It was due to drop off November 2011, excellent i thought. I checked my credit with Experian again yesterday and the date seems to have moved so now it looks like it wont drop off until Jan 2012? Can this happen? i thought all defaults went after 6 years. It seems odd that the date has changed?

also can i ask does having lots of settled accounts on the credit check matter? They are due to drop off in 2012 and 2013. I am trying to improve my credit rating so in 2006 and 2007 I settled all of my credit cards and store cards, i now only have a few cards and never miss any payments but until the default goes nothing else appears to matter.

Jimbo535

Hi

This is the first time I've posted on here. I'm curious as to what to do with my credit rating. I have a poor credit rating due to a couple of defaulted accounts, the last of which clears off my report soon. I have no debt or credit accounts, which I believe may now count against me should I apply for credit in future??

Obviously due to the poor credit rating in the past I've not been able to apply for any credit cards or loans etc so without any credit accounts to keep up to date with how do I improve my credit score once my last defaulted account is clear? I have very little to pay out at the end of each month apart from general bills I've built up through the years (sky tv, car insurance etc) and I live at home but obviously none of this counts towards anything and doing the quick credit checker things leaves me no wiser as, like I've said before, I have nothing to pay out on credit accounts, so if I answer "no" to the do I have a default question (which I won't have in a few weeks time) my result comes back as excellent, when I know that it isn't. Will my credit rating drastically improve overnight once it's removed? I just can't see it happening that way.

As I have no credit history for the last 6 years what would people suggest I do to improve matters?

no_cally_doe

Jimbo535 wrote: »

Hi

This is the first time I've posted on here. I'm curious as to what to do with my credit rating. I have a poor credit rating due to a couple of defaulted accounts, the last of which clears off my report soon. I have no debt or credit accounts, which I believe may now count against me should I apply for credit in future??

Obviously due to the poor credit rating in the past I've not been able to apply for any credit cards or loans etc so without any credit accounts to keep up to date with how do I improve my credit score once my last defaulted account is clear? I have very little to pay out at the end of each month apart from general bills I've built up through the years (sky tv, car insurance etc) and I live at home but obviously none of this counts towards anything and doing the quick credit checker things leaves me no wiser as, like I've said before, I have nothing to pay out on credit accounts, so if I answer "no" to the do I have a default question (which I won't have in a few weeks time) my result comes back as excellent, when I know that it isn't. Will my credit rating drastically improve overnight once it's removed? I just can't see it happening that way.

As I have no credit history for the last 6 years what would people suggest I do to improve matters?

As you'll know there is no quick fix to getting your credit rating up. You have to view it not as a number but really an overview of your spending and borrowing habits (or lack of, which is sometimes the case).

I'd suggest getting a credit card which you can build your rating with, perhaps a barclaycard initial or a similar offering. You might have to start lower with Capital one or vanquis. The apr will be sky high but that only applies if you don't pay it off in full every month. If you buy something small every month (something you usually have to buy) and then pay it in full (do this for a year) and you'll soon have a positive example of handling credit.

A long time ago I was in the same position and it's taken almost 5 years to be clear of 2 defaults. I started with a capital one card (39.9%) and paid it for a year. I then managed to get the BC initial (29.9%) and did the same. I then got an upgrade to the BC Gold (19.9%) did a years payments again. After that I got a MBNA Platinum (16.9%) and now have an RBS Platinum and MBNA.

Through this I also got a mortgage 12 months ago with a good APR. My point is it takes time but it is very achievable to get into a start of financial well-being if you're prepared to see it through

Rockbird_2

I've been using this site for some time and have successfully reclaimed PPI that I was mis-sold (thank you!), though I still have an ongoing dispute going on via the FOS regarding this, as I feel that I am not in the position I would have been in had I not had to pay PPI.

In connection with this and the said credit card, I am only managing to clear about £20 off a £4000+ loan and can only really afford to pay just above the minimum payment. Now, they've increased the minimum payment by about £40 (I've not been using the card, btw).

About the same time as I was going through the process of reclaiming my PPI, I received notification of an increase in interest, which I also queried. I'm not really sure of the outcome of that because I got standard replies that could have related to either query at the time!

Anyhow, I have just done a credit check via Equifax (the freebie one you recommend!) and my credit history is good except of a loan that my soon-to-be ex-husband took out via a joint account we still hold but I don't use. He has, apparently, missed a couple of payments, though knowing him, I think that they were just late. This shows his (our) rating as late payments going all the way back to July 2009 and is amber -caution.

I want to apply for a 0% card to transfer my current debt and would like to know if this is the best route for me. I am mainly self-employed, but on low income, receiving Working Tax Credit, but I do also have a very part-time job whereby I get a wage slip every week (albeit only about £37!) I am finding it increasingly difficult financially and want to reduce my outgoings accordingly until things pick up again. Having this increase is hurting me, to be honest, especially as it's only clearing a very small fraction of the initial loan.

I always make sure I pay at least the minimum payment and have been a day or so late sometimes (which I've been charged a fee for), but that particular check shows me as in the green.

Can anyone advise the best route for me? I'm getting my ex to check with the bank regarding the loan, as there seems to be a bit of a difference between their info and his statement, which might mean we can rectify that.

Thank you and keep up the good work, it's wonderful!

aspirations-high

Please can someone clarify for me, in the CR guide it mentions a 'term of settlement' where you can ask for a default to be removed.

Does this apply to defaults that are your fault or just ones
that are incorrect?:(

drewwhonumba2

topprez wrote: »

I recently graduated from University. However from my early years i have 4 defaulted account showing on my credit report where payments were missed and repayments were not kept up to date. Three of the four payments will be removed from my account next year as they will have been defaulted for six years.

I am now in a position to pay these debts and looking to improve my score. Ii am wondering how soon after payment will my credit score improve and will it be a big increase.

I personally wouldnt bother paying back defaults, when you pay them they appear as 'satisfied' but in reality this isnt an improvement in the eyes of lenders