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

lj2010

Tixy wrote: »

In terms of your ability to get credit having 3 defaults on your file will likely affect you for the whole of the 6years they are on file. But satsified defaults are a little better than outstanding defaults, and the older those defaults get the less of an impact they are likely to have to credit applications.

2 of the Defaults were defaulted 2 years ago and the other 3 years ago all paid in full about 3 months ago. I am trying to get my credit card paid right down by then end of next month so i REALLY REALLY hope that since those defaults were defaulted a while ago i hope it is not going to affect my credit score so much. You were saying it will be better the older the Defaults are did you mean from the default date or from when they were paid off ?

Many Thanks for your advice

Felis_Sylvestris

Hi, this is a ? rather than a reply. I recently tried to buy a new pay monthly phone online from Mobile Phones Direct. The contract was with EE and my existing contract is with T-Mobile, part of EE. I was very surprised when Mobile Phones Direct told me that EE had refused credit for the phone and thought it must be a mistake as I have never had credit problems. But I've checked my credit report on Experian and Equifax and they show that I had a late payment to Next Directory in April - 6 days late for a minimum payment of £10. I can't believe that this one late payment could prejudice my getting credit for a phone and am wary of trying to buy the same phone from EE in case they refuse again... Have asked Experian to add a statement to my report. Has anyone had similar experiences? Thanks!

Thrugelmir

Felis_Sylvestris wrote: »

6 days late for a minimum payment of £10. I can't believe that this one late payment could prejudice my getting credit for a phone

A late payment is a late payment. Hence the reason more and more businesses report to and use CRA's. Pay by direct debit in future to avoid problems. .

bakerfa

My soon to be husband & I are looking to get a mortgage later this year. Just checked credit files; his is non-existent. He's 32 and never had a credit card or store card, he thought this was a good thing but he's got a poor rating. We have gone onto the Electoral Roll at our rented address, (the council hasn't yet updated it but should soon, which will help). None of his direct debits show, council tax, utility warehouse, 2 x water, no car insurance. His Lloyds bank account open since the 90s doesn't show. Neither Aqua nor Lloyds would give him cc to help build credit. He can't get credit to improve credit. We're waiting until ER shows to recheck 3 agencies. How else can we improve quickly?

Hazzinho

You can't improve it quickly, a credit history takes years, he has no debt so hopefully you'll be OK.

HillyFields

I have been using the Noddle service but noticed that, despite, keeping up all the payments (for over 18 months now) and not being late to pay or any of the 'bad' things we are warned about, my score is going down! I am sure they use this just to frighten one. I paid for the Noddle Improve service and they mugged me! It is nothing more than a web page with two, anodyne and fatuous comments on it!! I am so angry with them!

Please: how do I improve my Credit score? If I could just get a consolidation loan, I could drastically reduce my out-goings and pay it off a tad quicker. I have never defaulted. I was working out of the country and stuff was paid late but I didn't miss any payments at all. Just late!

Hullabaloo2014

I was made bankrupt back in February 2012 and discharged in October 2012, previous to that I fell behind with payments which defaulted and bankruptcy was inevitable. I'm trying to do some work on my credit file over the next 4 years considering I'm almost 2 years of the necessary 6 years waiting period. My credit file still shows the defaulted accounts as outstanding and also I think at previous addresses, is there anything I can do to aid the situation so that once the 6 year period has ticked by I have a good start? From what I have already read, offering payment to my defaulted creditor might be advantageous but as I'm still within the 6 year stage, I can't see this being beneficial for me other than having a lighter wallet. What would you guys suggest?

Rrushi_Shqiptar

Hullabaloo2014 wrote: »

I was made bankrupt back in February 2012 and discharged in October 2012, previous to that I fell behind with payments which defaulted and bankruptcy was inevitable. I'm trying to do some work on my credit file over the next 4 years considering I'm almost 2 years of the necessary 6 years waiting period. My credit file still shows the defaulted accounts as outstanding and also I think at previous addresses, is there anything I can do to aid the situation so that once the 6 year period has ticked by I have a good start? From what I have already read, offering payment to my defaulted creditor might be advantageous but as I'm still within the 6 year stage, I can't see this being beneficial for me other than having a lighter wallet. What would you guys suggest?

The accounts will still show as defaulted, as long as the defaults dates are shown as earlier than the bankruptcy then they are ok. As for settling the defaulted accounts its a moral thing in my mind. Paying them off wont have that much impact on your reports as you have a BR report on your file and until it drops off it will affect the report more than anything else will.
In my experience I had to sort out incorrect dates and made sure all accounts showed as satisfied or settled (so much was wrong on the accounts) I made sure that linked addresses and financial links are amended, public info was corrected, searches were correct and all addresses were correct. I had to do this with all 3 CRA's NODDLE was and still is the worse/slowest to update anything.
Hope your life improves now.

Tixy

Hullabaloo2014 wrote: »

I was made bankrupt back in February 2012 and discharged in October 2012, previous to that I fell behind with payments which defaulted and bankruptcy was inevitable. I'm trying to do some work on my credit file over the next 4 years considering I'm almost 2 years of the necessary 6 years waiting period. My credit file still shows the defaulted accounts as outstanding and also I think at previous addresses, is there anything I can do to aid the situation so that once the 6 year period has ticked by I have a good start? From what I have already read, offering payment to my defaulted creditor might be advantageous but as I'm still within the 6 year stage, I can't see this being beneficial for me other than having a lighter wallet. What would you guys suggest?

If the debt was included in your bankruptcy then you have no need to pay anything extra to that account and it will not benefit your credit file to do so.

In terms of how the accounts show on your file have a read of this article - Credit Reference File Clean Up Post Bankruptcy

wpearson92

Hi all ive been on these forums for a while reading them however I havent contributed allot.
Anyway Im 22yrs Old and im currently in the process of saving for a deposit for an house.
So now Im looking at making my credit report seem as good as it possibly can be to potential lenders.
Ive paid for a credit report and score from Equifax and they seem to suggest I have excellent/Good scored in Credit agreements, Searches, court information and on the electoral role is showing Fair due to me not living there for 2 or more years, I will have lived there for 2 years In october.

With these ratings I would of expected a score higher then 351 which it gave me.

So this made me question what i could do to improve.
I have some accounts which are currently open to my previous address (my parents house) would I be best changing these to my current address. These are previous finance comitments such as my car Finance etc... would these appearing at my previous house affect my score?

Im also wondering if you guys have any advice as to how to make my appeal better to lenders, im doing all the typical things, not going close to my credit car limit, staying clear of overdraft limits etc... not missing any payments.

Cheers for any contributions,
Billy