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

Tixy

LynnX wrote: »

i was reading about CREDIT CARD SHUFFLE but martin also said it was better to leave time between applying for other cards etc. How much time???

Were you accepted on your first card application? have you made any other credit applications in the last few months for anything else?

If you've only had the one application and that was accepted you could apply for another one now I would think.

If you already have had a number of recent searches then I would leave it 4-6months or so.

LynnX_2

Hi

I :think:also had an argos card in July which was approved so I assume they did a credit check for that also .
Is there a specific ruling on how long to leave it between applications ?:think:

Tixy

No specific ruling - the generalised advice is to not have more than 3 applications in any 6month period. There are times when that isn't practical of course, such as when you move house but its a reasonable guideline.

LynnX_2

Hi again

I have been also looking at quotes to change my car insurance , am i right in thinking that they dont show up as a credit application ?

If I do change car insurer will the new one do a credit check ? so that will count.
Thanks Lynn

Chargem

Hi,

I just checked my credit report with Equifax and it has absolutely no data on me at all. I have both an arranged overdraft (£1250) and a credit card (Limit £1500) with HSBC, who I have banked with since my first account (12 years or so). I live in the Channel Islands so maybe this is why they are having problems accessing information for me, but the credit I have is with a huge bank, surely this should be picked up?

Should Equifax be allowed to charge me for a credit report when they have absolutely no information on me? Every part of the report is blank apart from my name and address that I filled in upon registering with them.

Secondly, how can I go about linking my credit information to my credit report, so I can start to build a good rating?

Thanks for any help offered.

simax

If your accounts are 12 years old, they won't be reported.

Chargem

simax wrote: »

If your accounts are 12 years old, they won't be reported.

The credit card is current, so is the overdraft. I even applied for a credit limit increase on my card in March of this year, nothing on the file. why would they not be reported?

izools

Sure, but old credit agreements didn't include a provision for reporting data to credit reference agencies so it would be a breach of DPA for HSBC to start doing this.

Credit reporting and scoring worked rather differently in the 90's.

Even my old HSBC current account (full account with OD etc) I had from the age 18-19 (closed just under six years ago) never appeared on my credit file - although HSBC still have it on file.

Also, is the address formatted correctly? For example, I live in a flat, but I have to enter my flat number as a house number on all my accounts and Credit Reference Agency subscriptions otherwise there's an address mismatch and no data is pulled, due to the way the address is formatted with the council and on the postcode database.

pete68

Hello All

First time user so go easy.

Applied for a mortgage yesterday and computer said NO !! As a result i've downloaded my credit report from equifax, and it makes for interesting reading.

6 years ago I approached a debt councelling service CCCS to be precise, I was getting into trouble financially so I decided to take the bull by the doo daa's and sort it before it became a real problem. Up to today barring 1 account i've paid of all my debts woo hoo!!! and this year for the first time i've applied for and been accepted for a new current acct and credit card.

Now upon reading my file I noticed that x2 of the account holders I owed money to have been what I can only describe as "being a little naughty." Even though I had made the arrangements with them through CCCS in 2005 and made my payments on time and as my circumstances improved I increased my payments, clearing the accounts 9 years earlier than initially estimated. In 2007 1 account (a well known credit card) defaulted my credit file 18 months after the initial agreement and another for a loan in 2009 between april and september added 6 missed payments??

Both of these were the reason for my refusal, and I cannot understand why this as occurred. This I need to rectify asap, the loan acct is still active but the credit card was paid off over 6 months ago and I have no acct information anymore.

Please if there is anyone out there who understands my ramblings and can help or advise I would be eternally grateful.

cheers

Pete

moneymoomoo

After following Martin's advice for the last few years I have finally managed to get myself debt free BUT my credit score is still poor due to one default left on my file. This reaches it's 6 year point on 30th November this year. How soon after this date will the record be removed from my file or do I need to ask for this to be actioned? And once it is removed how long will it take for my credit score to improve?

I have learned from my past and have no intention of getting myself into debt ever again but it would be nice to know if I needed another mortgage in the future or anything else that I would not have any problems with my credit score.

And finally two things.
1. THANK YOU Martin for all your efforts to help those of us stuck in the debt trap. It's taken me a few years but i have got myself debt free thanks to your advice and this website.

and 2 - to those of you still stuck in that debt trap don't despair and don't give up. It takes time, discipline and patience but you WILL get there in the end like I have done. I don't have much money each month but I no longer feel sick when brown envelopes fall through the letter box and I'm saving every month now to pay for the things I want rather than getting into debt to have them now and boy does that feel good!