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

WantToBeSE

Would be good if this was a sticky now.

SilentSquirrel

I've just paid off three credit cards and have rung to close a fourth one that I have never used at all. The first three are with Barclaycard and the fourth is a Debenhams credit card. I have just rung the customer services to close the Debenhams card and the person said that my account is now closed. I have a nil balance on it and they said I will know it is closed when I receive a statement with nil balance in the post.

I asked whether I could have a letter confirming that I had closed the account but the guy on the phone said that they didn't issue these anymore and that I will know it's closed when I get my statement.

Is this right? Surely I need some sort of written confirmation stating my account is closed? I did persist and ask but got nowhere. I'm really trying to improve my credit rating where I can, and wanted to check if this is correct?

Thanks!

sfax

paigew wrote: »

Hi,

I applied for a phone contract under my mums name because I'm under 18 after she told me she doesn't think she would pass the credit check. I just thought hey ho you don't know until you try, and I also put my card details for the direct debit so it was literally just her name and d.o.b that was used. However she was right, she was declined and she found out and is really upset with me because it stays on your credit rating for a year and she's trying to make hers better. I feel so bad I didn't realise that would happen. I was just wondering if it really does stay and how much worse would it make her credit rating?

Thank you, Paige

Her credit report must have already been bad if she was rejected for a phone contract. Searches only remain relevant for 6 months not a year.

I really wouldn't recommend ever applying for credit using someone else's name. It's a really bad idea and is essentially fraud

rb10

paigew wrote: »

Hi,

I applied for a phone contract under my mums name because I'm under 18 after she told me she doesn't think she would pass the credit check. I just thought hey ho you don't know until you try, and I also put my card details for the direct debit so it was literally just her name and d.o.b that was used. However she was right, she was declined and she found out and is really upset with me because it stays on your credit rating for a year and she's trying to make hers better. I feel so bad I didn't realise that would happen. I was just wondering if it really does stay and how much worse would it make her credit rating?

Thank you, Paige

Yes, it will stay on her credit file for a year.

The damage that you've done will probably be small ... but still negative.

Do you realise that you have committed fraud, by trying to open an account in someone else's name?

sfax

SilentSquirrel wrote: »

I've just paid off three credit cards and have rung to close a fourth one that I have never used at all. The first three are with Barclaycard and the fourth is a Debenhams credit card. I have just rung the customer services to close the Debenhams card and the person said that my account is now closed. I have a nil balance on it and they said I will know it is closed when I receive a statement with nil balance in the post.

I asked whether I could have a letter confirming that I had closed the account but the guy on the phone said that they didn't issue these anymore and that I will know it's closed when I get my statement.

Is this right? Surely I need some sort of written confirmation stating my account is closed? I did persist and ask but got nowhere. I'm really trying to improve my credit rating where I can, and wanted to check if this is correct?

Thanks!

Yes, all credit cards work like this. Just wait for a statement showing a zero balance. The actual close date depends on other factors - e.g. it can remain open if a recurring payment is taken after you've "closed" it

tinkerbell28

paigew wrote: »

It's not like that. It is allowed to have a phone contract in a guardian's name but with one's debit card details. I appreciate your concern but there are much worse things than applying for a phone contract, which I would pay for. Thank you for your reply.

Unless she knew you were applying, it essentially fraud.

RisingDamp

Okay, this is the negative factor (the only one) showing on my Experian report:

You have no successfully settled credit account




A successfully settled credit account is one which you have fully paid and closed in line with the terms of the agreement or to the lenders satisfaction. This is identified by a final account status of 0. This doesn't include mail order accounts (e.g. Next or Littlewoods).

Please be aware that if an account is settled with a final account status other than 0 or U, then this shows that the account has been settled, but not in line with the agreement or to the lenders satisfaction.

Settling accounts is likely to be viewed more positively by most lenders. Keep in mind lenders will also like to see what active credit limits are available to you.

But, in fact, I have a credit card which I clear every month, and have recently paid off a 25 year mortgage. None of this information appears on my report. Presumably, therefore, the information they hold is incorrect, and as I've recently applied for a card to take abroad, my rating has actually dropped as there is now a search logged against it.

I feel as if I'm in a spiral that I cannot get out from: I have no debt, there is nothing adverse on my credit report other than the fact that they have no records of my clearing debts.

I have done a little rooting around to see if I can see how to remedy what is going to be an eternal cycle of never being able to get a storecard if I want one, or another credit card if I need one (as I now need to get a Mastercard for travel to the States), yet I'm actually have an unblemished record of paying off debt.

Does anyone here know how I can get my records amended to reflect this?

RisingDamp

Just a quick PS to the above post: I have now tried emailing Experian to alert them to this. I only paid off my mortgage last year, and my current credit card is always paid off in full every month. I know I'm not alone in having this kind of silly problem, but am hoping that someone here will have been in my position and satisfactorily resolved it. Thanks!

Jharkinton

moon1970 wrote: »

Hope this is the right place to post. For the past three years I have no debt but a very very poor credit file due to a satisfied CCJ and past defaults. I understand it takes 6 years to be removed from my credit file. Is it worth getting a Cashplus to improve my credit rating? I have read mixed reviews.
Thanks for any help.

There would be no benefit in obtaining a Cashplus account to improve your credit situation. Your best bet would be the open a Co-Operative or Barclays Cash Card Account as no credit check is required and the account is registered on your credit file. Show good standing and the benefits would be more rewarding if you keep it in credit and don't miss any payments.

As far as I'm aware CashPlus Accounts don't appear on your credit file.

Think of opening a basic bank account as a prepaid card. You can only spend the amount you have in your account. :j

sfax

RisingDamp wrote: »

Just a quick PS to the above post: I have now tried emailing Experian to alert them to this. I only paid off my mortgage last year, and my current credit card is always paid off in full every month. I know I'm not alone in having this kind of silly problem, but am hoping that someone here will have been in my position and satisfactorily resolved it. Thanks!

I assume you were rejected for the said Mastercard and that's why you've taken an interest in your score? Your score is meaningless as it's not seen by lenders. The information in your 3 credit reports is what's important.

Get all 3 statutory reports (£2 each for Experian and Equifax, CallCredit is free from Noddle) and check them for accuracy. Find out who the Mastercard provider searched, All your credit agreements including your recently settled agreements should be accurate. A mortgage settled last year and not showing as such suggests this isn't the case