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

ViktorOnopko

Thanks Somerset. Yes, we're looking to apply for a mortgage in the coming months so I thought I'd run one. Everything was green but it sounds like it might be worth running more - I'm not sure I understand when you say "all 3 files", could you explain?

DCFC79

ViktorOnopko wrote: »

Thanks Somerset. Yes, we're looking to apply for a mortgage in the coming months so I thought I'd run one. Everything was green but it sounds like it might be worth running more - I'm not sure I understand when you say "all 3 files", could you explain?

Theres 3 agencies, get your reports from the other 2.

Experian and Noddle.

carolynw

We completed our DMP last year and finally paid everything off in January this year. We are totally debt free with good savings now >£50k but want to move house which will still require a mortgage. Our outstanding mortgage on our existing property which we have never defaulted from is £150k and ideally we would like to reduce our mortgage to £100k. How can we improve our chances of being able to move our mortgage. We have been told by our existing provider that this cannot happen until our credit score (file) improves. Hence my previous question of how to improve our credit score. Advice please.......

[Deleted User]

If you lender has told you that, then they are referring to your score with THEM. Not any score given by a CRA. They cannot see it and do not care about it.

You need to simply manage your account responsibly to build a good history.

FORGET ABOUT YOUR CRA SCORES.

DCFC79

carolynw wrote: »

We completed our DMP last year and finally paid everything off in January this year. We are totally debt free with good savings now >£50k but want to move house which will still require a mortgage. Our outstanding mortgage on our existing property which we have never defaulted from is £150k and ideally we would like to reduce our mortgage to £100k. How can we improve our chances of being able to move our mortgage. We have been told by our existing provider that this cannot happen until our credit score (file) improves. Hence my previous question of how to improve our credit score. Advice please.......

Your score lenders don't see, only you can see it so lenders can't base a lending decision on it. They see the raw data which is what you can see.

Your improving you credit history.

Cross posted with zx81.

carolynw

what sort of time scale do you think it will take to improve our credit history, does it improve all the time ie each month from when we were debt free or does it take years! It seems mad we can't move to a cheaper house!!! Did we do any damage by taking out a credit card that we pay off each month by DD? Sorry for all the questions

[Deleted User]

The card is fine - it's the right thing to do.

Your file will improve each month you manage your credit well. Lenders are looming for long periods of stability.

vikkic

My 21 year old daughter's just been declined for car finance - she rents her own home and pays utilities etc, but because I pay for her car insurance and mobile phone her credit file is 'thin' - looked at £2 Equifax (who the finance company referred to) and there's only 2 active and 2 settled credit accounts (she is on the electoral roll). I know she needs to build a history with a credit card etc, but does anyone know how long for - 6 months, 1 year? She just wonders how long to wait until she applies again.

everusualsuspect

Hi,

I got into trouble but have managed to clear £27K in 2.5 years. The one thing remaining is a credit card with a bank. They've already informed me that they are closing the credit account and that I should continue to make payments until the debt is cleared. Over the last 8 months, I worked at it and got it from £3.9K to £250, currently.
My worry is that paying off the debts has damaged my credit rating but one of the positives on there, ironically, is the credit card account with a £4.5K limit. Obvious question - do I not pay the £250 in order to keep it open?
I see the words non-usage on here but how is that determined? Do the banks contact credit agencies and tell them, 'This guy isn't using his credit card'? I know in my case, I don't actually have a card anymore though...

[Deleted User]

No - you pay the account to clear it. Then, if you can, you get a new card that you use regularly and clear in full each month.