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

PHILP_2

Having read NickX reply at #11 above on 11th August, I’m curious about the way in which late and missed payments are recorded on CRA reports. I am kicking myself for having missed a payment due on 28th December on my Nationwide credit card. What’s more, the total amount outstanding was only £4.11 so the late payment fee (which I guess there’s no avoiding) will be nearly three times the amount due. Anyway, I made the payment on line and it was credited on 5th Jan. Looking at my Experian report it seems that payments up to one month late are recorded as status ‘1’, up to 2 months late as ‘2’ and 3 months ‘3’ etc. Equifax has much the same system. It seems from what NickX is saying that a late payment is different to and not as serious as a missed payment but it's not clear to me how the CRA reports can distinguish between the two – is a missed payment shown as account in ‘default’?

Also, I’m concerned about the consequences for my credit score as this is my first ever late payment in about 25 years of using credit cards. Any reassurance that my credit score will not be damaged will be welcome. Would it be worth entering a correction pointing out the small amount involved? It seems unlikely I will be applying for new credit over the next few months so if the consequences are short term, no action may be necessary.

MissWorzel

I have a quick question...

I took out an o2 contract 3 years ago, cancelled this then switched to a vodafone contract about a year ago, now i've gone back to o2 after cancelling my vodafone contract, but have only gone on a pay as you go sim card, not a contract.

For some bizarre reason, my credit file is showing that my o2 contract is still "open", where as my vodafone one has been settled.

How do i get the o2 one to become settled like the vodafone one is?!

Tatinho

I went on an unplanned overdraft a couple of months ago because of a late paid direct debit, currently I'm studying at university and in some debt with my bank, I was wondering if I could open another student account with an overdraft at another bank to pay the overdraft on the account thats getting charged intrest since I can't pay back the whole thing at once, do you think this will work or will I get rejected by every bank?

PS I didn't get a planned overdraft when I started my course cause I was still under 18 by then, and lloyds doesn't allow under 18s to have a student account overdraft.

Andy_Ash

can anyone advise if the length of time you have held your Current Account has much effect on your credit rating? I have started a new job in the eurozone, want to move to a nationwide current account (cause they treat you better than most when withdrawing money abroad) but am also about to start the process of buying the first properly i will have owned in the last 5 years or so. Should I hold out before moving my current account?

NickX

Andy_Ash wrote: »

can anyone advise if the length of time you have held your Current Account has much effect on your credit rating? I have started a new job in the eurozone, want to move to a nationwide current account (cause they treat you better than most when withdrawing money abroad) but am also about to start the process of buying the first properly i will have owned in the last 5 years or so. Should I hold out before moving my current account?

I would open the Nationwide account straight away to benefit from the commission free foreign currency transactions, but keep your old Current Account going and use that on your mortgage application because it will demonstrate an established relationship with your bank. Good Luck.

slopemaster

Just in case anyone was thinking of signing up and paying for them...

Signed up with both Equifax and CreditExpert for free trial.
Equifax gave me access to my report straight away on line.
And when i phoned to cancel, were polite and helpful.

CreditExpert, otoh, have sent a PIN code in the post, bit of a hassle.
Then I tried to phone to cancel. Phoned several times but couldn't get through, not even into a queue. Just get a message saying ring later or e-mail us. So I e-mailed them to cancel, and just got a message saying if you want to cancel you have to phone. I mailed again saying you don't answer the phone, and just got the same mail back. This is a lot of a hassle. Looks like I might have to send them a recoreded dlivery letter if I can't get through on the phone and they won't accept it by e-mail. So BEWARE of signing up with them.

System

MissWorzel wrote: »

I have a quick question...

I took out an o2 contract 3 years ago, cancelled this then switched to a vodafone contract about a year ago, now i've gone back to o2 after cancelling my vodafone contract, but have only gone on a pay as you go sim card, not a contract.

For some bizarre reason, my credit file is showing that my o2 contract is still "open", where as my vodafone one has been settled.

How do i get the o2 one to become settled like the vodafone one is?!

Just write to them asking them to mark the account as settled, they won't have a problem doing this.

Regards
UNDERGROUND

shine23

I applied for a Tesco's credit card because it was 0% for 14 months on balance transfers. I wanted to transfer the balance from my Mint card (due to extortionate interest rates) onto this one. I applied but got rejected, I was completely perplexed as to why this had happened because Im up to date with all my accounting and have never missed a payment on anything, Ive never had this problem in the past.

I quickly realised after looking at my credit report online that this was because I wasnt on the electoral roll at my new address. I have since gone onto the electoral roll but am not sure what to do....will re-applying for the Tesco card damage my credit rating? Does this mean that I have to continue paying the ridiculous rates on my mint card as I cant change onto another card. Will this rejection damage my credit rating and for how long?

If anyone could answer some of these questions and give me some advice it would be much appreciated! Thanks!

lisyloo

will re-applying for the Tesco card damage my credit rating?

If you continually re-apply without your credit file being updated with the electoral roll information then yes, it could damage your rating.
You need to wait until the information is there.

Does this mean that I have to continue paying the ridiculous rates on my mint card as I cant change onto another card.

Until the electoral roll is updated on your report - yes.

Will this rejection damage my credit rating and for how long?

There will be no sign of a rejection, just a search.
A single search will not damage your rating.
But lots of searches close together may be interpreted as rejection, so you need to hold off until you see the electoral roll stuff appear.

System

shine23 wrote: »

I applied for a Tesco's credit card because it was 0% for 14 months on balance transfers. I wanted to transfer the balance from my Mint card (due to extortionate interest rates) onto this one. I applied but got rejected, I was completely perplexed as to why this had happened because Im up to date with all my accounting and have never missed a payment on anything, Ive never had this problem in the past.

I quickly realised after looking at my credit report online that this was because I wasnt on the electoral roll at my new address. I have since gone onto the electoral roll but am not sure what to do....will re-applying for the Tesco card damage my credit rating? Does this mean that I have to continue paying the ridiculous rates on my mint card as I cant change onto another card. Will this rejection damage my credit rating and for how long?

If anyone could answer some of these questions and give me some advice it would be much appreciated! Thanks!

Hi

You wouldn't be able to balance transfer a balance from Mint to Tesco anyway because they are both issued by RBS.

If you are going to try for another card make sure it's not from the RBS stable.

Regards
UNDERGROUND