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

Tixy

Doz34 wrote: »

Now my credit score is 699 when it was 850 on Experian. The reason my score has decreased is because my oldest account was closed and I now have a credit card that is less than 10 months old. I would like to know if there is anything I can do to rectify this? as we where mis led by so called professionals looking only to profiteer. and if not what are the implications of my now poor credit score and how long it will take to improve?

Just because your score on experian has decreased doesn't mean your chance of getting a mortgage has decreased. Mortgage lenders do not see the score that experian will sell to you. They assess the raw data from your credit file and use that to make a lending decision.

Switching bank accounts and opening a credit card account a few months ago shouldn't have a big impact on a mortgage lenders decision (assuming there isn't a large balance on the credit card account).

creamsweater

Hi I am really new to the forum and I have a question about my Experian Credit Score. I recently applied for their free 30 day trial to check my credit rating, on the first day I had a score of 978 but I had to wait for a pin to access all the information. When the pin arrived my score had dropped to 8oo and something - from Excellent to fair - I queried this with them as I hadn't been aware of and couldn't see any change on my account from one report to the next that would explain the drop. The reply I received said that Virgin Media - who I have been a customer off for almost 4 years now, but recently upgraded my account to include TIVO - had changed my credit limit and my account was outstanding, now my virgin bill goes out by D.D. and isn't due until the 4th although I receive the bill notification around the middle of the month. What I am wondering is does this mean that my credit score will fluctuate every month between the time I receive my bill and the date they take the payment? I'm afraid if it does I will no longer be a Virgin Media Customer. Thank you

boucho11

I've recently paid off all defaults on my credit file. I have a CCJ which was settled though comes off in Feb (6 years)

Just want to know once this updates (the payments I've made) will my credit rating improve? How long and is there anything I can do to help this? I have a small loan in my name that im making regular payments on and is up to date.

Im trying for a mortgage this year, have my deposit together but just want to know what i need to do to help my cause

thank

Tixy

creamsweater wrote: »

What I am wondering is does this mean that my credit score will fluctuate every month between the time I receive my bill and the date they take the payment? I'm afraid if it does I will no longer be a Virgin Media Customer. Thank you

Hi

The credit score that experian will sell to you will almost certainly vary each month / through the month whether you are a customer of virgin media or not.

The good news is that nobody ever sees that score other than you if you buy it, and experian. No lender or potential lender ever sees that score. The see the raw data on your credit file and assess that as a whole when making a decision.

Tixy

boucho11 wrote: »

I've recently paid off all defaults on my credit file. I have a CCJ which was settled though comes off in Feb (6 years)

Just want to know once this updates (the payments I've made) will my credit rating improve? How long and is there anything I can do to help this? I have a small loan in my name that im making regular payments on and is up to date.

Im trying for a mortgage this year, have my deposit together but just want to know what i need to do to help my cause

thank

Even if the defaults are settled whilstever the ar still showing they will significantly affect you ability to get accepted for credit/mortgages etc.

It may be possible to still get a mortgage with satisfied defaults on file, though that depends on how many, how much for and how recent. And it will limit the places that would be likely to accept you - you are probably looking subprime mortgages not highstreet, which tend to have a lower maximum ltv and higher rates>

boucho11

Tixy wrote: »

Even if the defaults are settled whilstever the ar still showing they will significantly affect you ability to get accepted for credit/mortgages etc.

It may be possible to still get a mortgage with satisfied defaults on file, though that depends on how many, how much for and how recent. And it will limit the places that would be likely to accept you - you are probably looking subprime mortgages not highstreet, which tend to have a lower maximum ltv and higher rates>

Thanks for replying. There were 4 defaults all equalling £1400 odd.

I've been told my local bank, I'm based in NI, May look at it on a case by case basis. 3 of these defaults are pretty old, one being nearly six years.

creamsweater

Tixy wrote: »

Hi

The credit score that experian will sell to you will almost certainly vary each month / through the month whether you are a customer of virgin media or not.

The good news is that nobody ever sees that score other than you if you buy it, and experian. No lender or potential lender ever sees that score. The see the raw data on your credit file and assess that as a whole when making a decision.

Thank you for your reply. I had no idea that's how it worked I thought it was just a static thing unless you missed payments.

Experian_company_representative

creamsweater wrote: »

Hi I am really new to the forum and I have a question about my Experian Credit Score. I recently applied for their free 30 day trial to check my credit rating, on the first day I had a score of 978 but I had to wait for a pin to access all the information. When the pin arrived my score had dropped to 8oo and something - from Excellent to fair - I queried this with them as I hadn't been aware of and couldn't see any change on my account from one report to the next that would explain the drop. The reply I received said that Virgin Media - who I have been a customer off for almost 4 years now, but recently upgraded my account to include TIVO - had changed my credit limit and my account was outstanding, now my virgin bill goes out by D.D. and isn't due until the 4th although I receive the bill notification around the middle of the month. What I am wondering is does this mean that my credit score will fluctuate every month between the time I receive my bill and the date they take the payment? I'm afraid if it does I will no longer be a Virgin Media Customer. Thank you

Hi Creamsweater - when your Experian score changes there can several reasons for this. As Virgin accounts generally don't have a credit limit recorded, it might not be the balance on this account that has impacted your score in this way. If you would like me to take a look at your report to advise you what might have caused this reduction, please email me with your membership number at

[EMAIL="uksocialsupport@experian.com"]uksocialsupport@experian.com[/EMAIL]

Thanks Jo

Fina200

Hi there,

I have a CCJ due to come off my file on 26/02/14 for £405 and wondered how long it will be before my score improves?

Currently my score on Noddle says 549. I do have various other credit ie cards, car, phones and catalogue accounts which are paid upto date and show green and aren't up to their credit limits. I am wanting to get a right to buy mortgage very soon but wasn't sure when my credit score should improve?

Any advice would be much appreciated!

Thanks

Hazzinho

The score means nothing, lenders don't use it, only you can see it, just make sure the data is accurate and you are on the electoral roll. Level of debt to salary and how you manage accounts is how they gauge you.