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

StuC75

My Bank balances have always show as zero on the credit report - I would guess that they would show overdrafts & credit commitments as opposed to accounts 'in credit'...

rhyski wrote: »

I've just checked my credit reports and there were two slight errors:

I have two current accounts which have always been in credit (one for bills, the other my main account)
The reports only showed by bills account, but incorrectly with zero balance throughout it's history, and my main current account didn't show at all.

I've contacted my banks and they've said they'll send my account details to the credit report agencies, but that they will only be able to send data from now onwards (and not historic data) - is this right? and will this reflect negatively at all that they don't have all the historic data?

rizla_king

StuC75 wrote: »

I would guess that they would show overdrafts & credit commitments as opposed to accounts 'in credit'...

Yes, bank account balances are debt not credit balances. £0 indicates that you are in credit every month and not overdrawn.

tr54vrs

Hello,

New to the credit area of the forum.

I plan to buy a house in the next 6 months with my partner. I've always been quite interested in how my credit file looks.

Background:

I have had several loans, car HP, credit cards and phone contracts over the years. I have never missed payments on anything, ever, and all credit reports varify this.

I am a member of Noddle, currently have Equifax free trial and got my Experian statutory report.

I'm disappointed with my "score" of 554 on Noddle. It places me between Poor and Very Poor. They place this down to having a high level of debt. I know everyone says the scores mean very little but it still worries me.

The only active acccounts I have:

Car HP - £6700 (£205 p/m)
Car insurance - £197 (29ish p/m)
Credit Card - £103 (paid off in full every month, limit £200)
Bank account - Balance always states 0 as I had an arranged overdraft of £100 which I use as balance. The bank overdraft has been removed as of today.
Mobile Phone - £0 (DD every month)


I have at least 12 accounts that are all settled.

My credit card was opened 2 months ago, for the sole purpose of credit file improving.

On my equifax Credit Report there are all of the above accounts with the addition of another credit card that I applied for but was under the impression that it was never opened. This has been closed today.

My score on Equifax is 402 which places me in the good category (just).

I also had my sister as a financial associate from a bank account she opened for herself when I was 9 years old! This was removed instantly.

That score should go up if I continue my stellar record of paying bills.


Experian credit report shows the same as Noddle but i'm not paying for the score. Everything looks hunky dory there.


Why would someone like me who is a an excellent bill payer and no risk whatsoever have low scores?

Can you recommend anything?

Should I just be patient and wait for this new card to kick in and be 3-6 months old...

Cheers for reading

mittens65

New to site and computer novice so not sure this is the way to post a new thread I hope so, so here goes for the second time my friends 30yr old daughter has the chance of a permanent job at a bank the only thing obstructing this is her credit reference which is poor to say the least she had six outstanding loans some with late payments and a credit card none of which has incurred any ccjs just defaults. My friend has paid off all but one loan which have mainly been payday ones and the one outstanding one is due to be paid off shortly. The only outstanding then will be a minimal amount on the credit card and an agreed overdraft of £3k which is being reduced each month. The credit card balance can be paid off but the overdraft is what she is worrying about as her daughter has been told the job is hers only for the credit reference previously sort she is currently temping at the bank and has done through an agency for a few years so they know she is a good worker my friend is unable to help with the overdraft do you think her credit reference will have improved sufficiently she has also gone on the electoral roll which she hadn't been on at the time of credit reference undertaken by the bank.

Tixy

Hi

mittens65 wrote: »

do you think her credit reference will have improved sufficiently she has also gone on the electoral roll which she hadn't been on at the time of credit reference undertaken by the bank.

Has the bank already performed a credit check and declined to offer her employment?

The debts she cannot pay off in full, which I think from your post is 1 card and an overdraft - do either of these have defaults? or will all of the defaulted accounts be fully paid?

I would imagine if she has several defaulted accounts on her file this could well be an issue for them.

If they haven't yet undertaken a credit check it might be worth her speaking to the HR team at the employer to ask what is considered acceptable and what is not.

newsgroup_monkey

Some of you may know me from other parts of this site so please be gentle

I have some really really basic questions.

1. I only moved into my house earlier in the year. Checkmyfile recommended waiting until the annual electoral roll update. However, this is now causing me problems if I want to apply for a FTB mortgage. I've requested my council add me and the wife to the roll. How long does this take and how long to show up on a credit report?

2. I had 2 "online only" Credit Cards which I've only just realised had the wrong address. I've changed them now. Again, how long to update my credit file? Also, I closed a credit card down in August, but it's still showing on my file as having £12k limit and £200 outstanding (and the wrong address). How long before that goes? They won't let me change the address because the account is closed.

3. In all my credit history for 6 years, I have 1 missed payment. I feel it's unfair because it was a brand new card and Halifax didn't set the DD up in time. What's the chances of getting it removed and how long does it take? I'll write to them anyway (costs me nothing).

4. Credit score is currently set at just over 800. What's the chances that fixing the above will boost it?

Thanks so much for your time. Even 1 word answers would help :A

Robbo1987

HELP HELP HELP HELP!!!

Hi guys

I am currently in the process of writing letters to two different companies in regards to getting defaults removed from my credit file. I am desperate to get them removed as its stopping me getting a mortgage. One of the defaults was registered in 2009 for around £100 and another in 2012 for around £200, both of which have been fully settled. I have read a post which has given me advice about how to apply for a removal (unlikely but worth a try). However I am unsure about a few things.

1- I have read that companies are required by law to reply to any letter that is sent to them. What do I do if they dont reply? (all my letters are through recorded delivery)

2- I have read the reply must be within 28 days, but if its outwith the 28 days, what legal action am I able to take?

3- They have to be able to provide proof of original default notice? If they cant provide this the defualt has to be removed. If this is the case, what if they refuse? How do I enforce this?

Any help would be much appreciated

p.s. All my letters have been sent recorded delivery

Robbo1987

daievz

Hi, I have a few loans outstanding but now have money to pay them all off. I am under a debt management company at the moment but would be able to come off that and pay my debts in full.

What would happen with my credit file if i done that or is it better to keep on paying per month to the debt managememt company?

Any help will be appreciated?

Thanks

bhoy1976

Hello all,

I finally paid off all my debts in May 2013 after being in DMP for about 4 years. Throughout that time I've lept my nose clean and educated myself managing my finances.

I'm on the electoral role, have a land line etc etc. What I would like advice on is whether there is anything else I can do whilst these defaults are still on my credit file or if I have to wait until they've disappeared completely?

Cheers

Stevie

Tixy

bhoy1976 wrote: »

Hello all,

I finally paid off all my debts in May 2013 after being in DMP for about 4 years. Throughout that time I've lept my nose clean and educated myself managing my finances.

I'm on the electoral role, have a land line etc etc. What I would like advice on is whether there is anything else I can do whilst these defaults are still on my credit file or if I have to wait until they've disappeared completely?

Cheers

Stevie

Do you have any active credit accounts on your file at all at the moment (things without defaults) e.g. phone contracts or similar?

It may be worth trying for a subprime credit card in a couple of months which you may be able to get if your defaults are all a few years old and now all paid.
You could then use this to start building up a positive credit history, so that when the defaults do all go you'll be left with some good history rather than just a blank file.

If you can get one its best to use it each month for maybe a couple of purchases and repay in full each statement. That way it won't cost you anything in interest.