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

sfax

antonio1 wrote: »

Can anyone offer insight on this: I cancelled a magazine subscription contract (and the direct debit) but there's a dispute about whether any monies are owed, which turns on whether it was cancelled in the free trial period. Is it automatically the case that this will end up on a credit report as an unpaid debt without warning? I appreciate things like notice of correction etc.

I've not received any written demand for payment from the company or any collection agency, yet. It may well be on their internal files as a bad debt but they can't be bothered demanding payment.

Do companies have to warn you before they notify what they consider a bad debt to credit reference agencies is my key question? If not presumably the first time you know of it is when you have a credit issue....That said I don't know how long it normally takes from (alleged) default to something appearing on the credit report.

Many thanks.

It was a never a credit agreement so there is no late payment or default to record.

If they were to chase you for the money and you ignored it, it could end up as a CCJ. If it was me, I would contact them rather than wait and see.

antonio1

sfax wrote: »

It was a never a credit agreement so there is no late payment or default to record.

If they were to chase you for the money and you ignored it, it could end up as a CCJ. If it was me, I would contact them rather than wait and see.

Blimey! I take my hat off to you. It was a hard copy plus a digital online content subscription (you get website access to their content). There's nothing in the contract about it being a credit agreement and I didn't do any credit check.

Is it the case that magazine/newspaper subscriptions are not usually credit agreements? If so, what is the difference between that and a mobile phone or broadband contract? Why do the latter involve a credit agreement and the former doesn't? Is it because you can't incur extra charges with the former but can with mobiles etc.

They've been a real pain to deal with. I went to massive lengths to point out I cancelled in time but to no sensible response. But I agree entirely not to sit back and wait. I'll check whether they're going to send a demand for payment. Many thanks indeed.

sfax

antonio1 wrote: »

Blimey! I take my hat off to you. It was a hard copy plus a digital online content subscription (you get website access to their content). There's nothing in the contract about it being a credit agreement and I didn't do any credit check.

Is it the case that magazine/newspaper subscriptions are not usually credit agreements? If so, what is the difference between that and a mobile phone or broadband contract? Why do the latter involve a credit agreement and the former doesn't? Is it because you can't incur extra charges with the former but can with mobiles etc.

They've been a real pain to deal with. I went to massive lengths to point out I cancelled in time but to no sensible response. But I agree entirely not to sit back and wait. I'll check whether they're going to send a demand for payment. Many thanks indeed.

Phone contracts involve variable costs that you only pay after making the calls and often you are paying off the cost of the handset over 12-24 months. You are agreeing to pay a fixed amount plus a variable amount (making calls) for a set number of months and if you cancel early, you'll usually have to pay the whole term. In that way, it's much like a loan and fits a credit agreement.

Magazine subs are usually monthly recurring payments (CPAs) or you pay for a whole year in advance (last time I had one anyway). Unlikely to involve credit searches or credit agreements

purplestar133

antonio1 wrote: »

Can anyone offer insight on this: I cancelled a magazine subscription contract (and the direct debit) but there's a dispute about whether any monies are owed, which turns on whether it was cancelled in the free trial period. Is it automatically the case that this will end up on a credit report as an unpaid debt without warning? I appreciate things like notice of correction etc.

sfax wrote: »

It was a never a credit agreement so there is no late payment or default to record.

sfax wrote: »

Magazine subs are usually monthly recurring payments (CPAs) or you pay for a whole year in advance (last time I had one anyway). Unlikely to involve credit searches or credit agreements

Sorry this may be a bit off topic but talking of cancelling mag subscriptions...I have taken up offers such as 6 issues for £1 then cancelled after the promo or trial period, then done the same offer again say, 6 months later, quite a few times. Usually cancelling the direct debit during the trial period is enough to stop the issues arriving and I've never had any demands for further payment. On occasion I have contacted the subscription company to tell them I don't want to continue with the subscription but I don't do this every time.

I have often wondered whether this could be having any negative effect on my credit records or any other records for that matter. Does anyone know whether I'm shooting myself in the foot doing this?

kiffer_2

dear all.

hello my name is chris im 34 years old and never been able to get credit...i have asked and had credit reports but they mean nothing to mei could not get 1p credit...could anyone help...cheers

tim75

My friend, who had a bad rating, managed to improve it by getting an Argos card. He would spend on it but clear the balance quickly. It helped improve his overall score.

Pocahontas1

Hi, Could someone tell me what the point of a credit score is please if lenders often don't use them? Are credit ratings agencies run by the government or are they private companies? I'm new to this and am just confused how the system works really.
Thank you

KatherineM

Hi

I've just been turned down by Barclaycard. The letter they sent me declining my application suggests I go to the Equifax website to find out what details they hold which are affecting my credit rating.

As I was entering my details into the Equifax website, I realised that the website is not secure, yet it asks for all my credit card details (so they can start charging me after 1 month or whatever). How come Equifax doesn't need to have a secure site for dealing with its customers' credit card details?

And is there another way for me to check that Equifax and the others haven't got incorrect information about me on file?

Thanks
Katherine

sfax

KatherineM wrote: »

Hi

I've just been turned down by Barclaycard. The letter they sent me declining my application suggests I go to the Equifax website to find out what details they hold which are affecting my credit rating.

As I was entering my details into the Equifax website, I realised that the website is not secure, yet it asks for all my credit card details (so they can start charging me after 1 month or whatever). How come Equifax doesn't need to have a secure site for dealing with its customers' credit card details?

And is there another way for me to check that Equifax and the others haven't got incorrect information about me on file?

Thanks
Katherine

Why do you think it's "not secure"? It uses HTTPS, standard for website encryption

seanacy67

Hi

I was just wondering if I paid multiple payment off my credit cards a month would that build a better credit score eg

minimum payment = £100 so instead of paying one £100 I pay say £25 four times up to the cut off date.

Because don't you get so many points per payment !!

Any help would be great