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

sc03tye

Hi guys - I did the good/BAD thing of taking a 15k loan out for my gf to pay off multiple debts (not all of them...) as she couldn't get a loan anywhere herself, and she just had nowhere to look for help. I understood that, and felt the only thing to do was take a loan out for her.

She's changed her spending habits around and has very little money for living, just paying things off - including me. She has to occasionally miss 1-2 payments with credits cards for example, as she literally cannot afford the minimum payment, due to the amount owed to everyone. She is just about managing... trying to ensure she doesn't miss a payment 3 times.. which would record badly on her rating?

I guess as I expected, this loan has stopped me from getting a mortgage by myself. I have an average credit score.. seems to be floating down slightly recently but I've no bad credit or anything - pretty squeaky clean - she hates that!ha.

So I've just used the loan eligibility calc on the site with her details and it shows a 0% chance for any loan... not even 1k. To pay the loan I have out for her, she'd need 13k... she'd like more to pay off/consolidate others.

She's been waiting it out to apply for another loan very shortly... waited about 12 months as told by her bank. The checker doesn't fill me with a good feeling.

What exactly can she do? she's stuck in a hard place spending all of her money on repaying debts... but no company can help...?

Has anyone been in the same situation and/or have suggestions please?

Thank you

Hazzinho

Probably best to go on the debt forum, for £13k loan she'd need to earn over £26k and have a decent history of managing credit. I hope you trust her, the £15k debt is now yours not hers, lenders see anyone borrowing 50%+ of their annual salary as high risk.

bsms1147

Tell her to post on the debt-free wannabe board and post a statement of affairs
http://www.stoozing.com/calculator/soa.php

dwtmahdc

Hi,
I have a decent experian score (997), and know that isn't directly looked at by credit companies, but have struggled to get credit recently.
Even banks that I'm with, and have a fair amount of savings with (I even have an existing credit card with barclays), seem to reject me.
I'm startign to think it's to do with address history, but the one on my credit file matches that on my Electoral Role.
Any suggestions?

newsgroup_monkey

I'm intrigued on how anyone can get a 997 on Experian?

I've just completely killed my credit score by doing the following:

I had a number of credit cards, low APR (I had one which was 4% lifetime balance transfer), a couple with higher APR but not much on. I've not stoozed - I've had the same cards for a number of years.

Total debt was less than £10k. Credit score was in the mid 800s.

So I've basically saved up, paid them off. Closed the unused ones down so that I'm just left with one - I had £45k in unused credit and I was warned that would screw me if I applied for a mortgage.

All I have left now is about a year left on a loan (it's very low APR and really not worth paying off early because of the naughty charges).

So ultimately, I've about £2k of debt. No missed payments. No store cards (never have). 1 Credit card. An OK income (Saving £6-800 a month). Postcode is excellent (950).

My credit score has now dropped to 787 :eek:

Now, according to the "increase your credit score" item, I've done all the right things - not stoozed, paid lots of interest, not missed payments and so on and now I have very little unsecured credit (and by this time next year £0)

Any suggestions?

Candyapple

newsgroup_monkey wrote: »

I'm intrigued on how anyone can get a 997 on Experian?

I've just completely killed my credit score by doing the following:

I had a number of credit cards, low APR (I had one which was 4% lifetime balance transfer), a couple with higher APR but not much on. I've not stoozed - I've had the same cards for a number of years.

Total debt was less than £10k. Credit score was in the mid 800s.

So I've basically saved up, paid them off. Closed the unused ones down so that I'm just left with one - I had £45k in unused credit and I was warned that would screw me if I applied for a mortgage.

All I have left now is about a year left on a loan (it's very low APR and really not worth paying off early because of the naughty charges).

So ultimately, I've about £2k of debt. No missed payments. No store cards (never have). 1 Credit card. An OK income (Saving £6-800 a month). Postcode is excellent (950).

My credit score has now dropped to 787 :eek:

Now, according to the "increase your credit score" item, I've done all the right things - not stoozed, paid lots of interest, not missed payments and so on and now I have very little unsecured credit (and by this time next year £0)

Any suggestions?

Why are you paying for a meaningless credit score? It has no bearing on your ability to obtain credit, stop wasting your money. There are people who have had numerous defaults, are bankrupt and they have had ‘scores’ in the 900's, that shows just how stupid their system is.

When you take out new credit/close down accounts, these small changes will impact your file to varying degrees. You seem to be in a great position what with your savings, make sure you’re on the electoral roll and keep doing what you are doing and ignore the ‘scores’. Make sure the data on your files at all 3 agencies are up-to-date and correct.

newsgroup_monkey

Candyapple wrote: »

Why are you paying for a meaningless credit score? It has no bearing on your ability to obtain credit, stop wasting your money. There are people who have had numerous defaults, are bankrupt and they have had ‘scores’ in the 900's, that shows just how stupid their system is.

When you take out new credit/close down accounts, these small changes will impact your file to varying degrees. You seem to be in a great position what with your savings, make sure you’re on the electoral roll and keep doing what you are doing and ignore the ‘scores’. Make sure the data on your files at all 3 agencies are up-to-date and correct.

I've only been paying for credit scoring the last few months because I wanted to make sure I had no gremlins (I've had an attempted La Redoute account set up in a different address) and also because I wanted to make sure that my ex-wife was entirely off my credit file (she isn't, despite me requesting it).

I'm glad that the credit scoring is bull anyway - I had a feeling it probably was. Interestingly, my bank keep sending me the "new 0% balance transfer" letters on almost a daily basis like they seem to think I've some hidden cards somewhere.

sly_dog_jonah

According to the MSE guide, searches only stay on your credit files for 12 months.

Looking at my credit reports on Call Credit (noddle) & Equifax though, this doesn't seem to be the case. Both list searches for the past 24 months. I can still see 'Identity Verification' and 'Insurance Quotation' searches on both reports dating from July 2013. According to Experian's site searches are removed from their credit reports after 12 months.

Perhaps equifax & Call Credit show a longer history of searches to consumers than is shared with lenders, but there's no suggestion this is the case.

EChampello

Hi
Last month I switched from natwest to first for the £100 joining incentive and am considering whether to switch again to Halifax in order to earn another £125. Does switching current accounts potentially adversely effect my credit rating? I am wanting to apply for a mortgage soon for the first time. Many thanks all!

wales786

I had an accident at work that left me disabled. My car was repossessed and my cards closed. I have an agreement with these companies to pay back a small amount each month, which I have not defaulted on ( as I pay by direct debit). How may I correct my credit rating that says I defaulted on these payments?..