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

CraigLoans

Hi,

Have to say, I finding some very useful information on this thread.

Keep up the good work people.

Am hoping for some advice for my problem. Last November I applied for a credit card (which I was rejected for) as well as a mobile phone contract and bank overdraft within a very short space fo time. I know these searches dont look good when applying for credit, so I am wondering how long the cc companies check back when checking for searches on you file.

I know the Credit Reference Agencies keep these on file for a year, but in Martin's credit rating checker they only ask about searches in the last six months.

Do the cc companies only check back 6 months or does it depend on the which company it is?

Any help would be great thanks.

JimmyTheWig

sjb03 wrote: »

I took out my first mortgage 17 months ago, and my fixed rate is ending shortly. I applied to another mortgage lender

I know this isn't answering what you asked, but have you considered staying on the standard variable rate with your current lender.
I would have guessed that this would currently be cheaper than the fixed rate you are paying now. I know it might go up again, but at least this way you will avoid paying arrangement fees, etc. I'm guessing that you don't have a 40% deposit and so won't be offered the very best deals out there.

lilmissmup

lilmissmup wrote: »

Hi all,

Me and my OH are looking to get a mortgage.

I am out of debt with a good credit report (never missed a payment or made one late).

I have just checked OH's credit report with Credit Expert and its blank, no records on it, now he hasn't had any credit since we have been together but was expecting maybe some nasty things to be on it (glad they are not).

He is awaiting a decision for a Vanquis credit card to start building his credit rating up, any thing else we can do as well?

I am also surprised to see his current account wasn't on there but it is on mine? Is it dependent on banks?

As I have a good credit rating is it worth linking him to me?

Any help please?

hur575

lilmissmup wrote: »

Hi all,

I am also surprised to see his current account wasn't on there but it is on mine? Is it dependent on banks?

What type of account is it? my main bank is Barclays, and it showed in my file but I opened basic account with Halifax, which i never bothered upgrading, and it never showed in my file but now that I upgraded it shows. so from my experience it depend what type of account also on the bank, some bank do not list current account.

lilmissmup wrote: »

Hi all,

As I have a good credit rating is it worth linking him to me?

I am not sure about this hope others can help you on this

ScRiMpNsAvE_2

ScRiMpNsAvE wrote: »

a) How long does it take for both cancelled overdrafts and cancelled credit cards to reflect on your credit file?

b) Following the 'credit-crunch' (urgh) is it having a direct effect on applying for consumer credit?

I'd really appreciate some help on the above peeps - I've closed all unused accounts with overdrafts and reduced my limits on cards down as far as I can.

Cheers

noah271007

ScRiMpNsAvE wrote: »

I'd really appreciate some help on the above peeps - I've closed all unused accounts with overdrafts and reduced my limits on cards down as far as I can.

Cheers

Hi in response to your questions

a) It takes 4-6 weeks before it updated on credit file

b)It is MORE harder to get decent credit rates. If you have a good credit history with good income, it should not be a problem. However if you have missed payment recently (in the last 12 months), this might be a problem.

To answer the above quote, it can be counter productive if you closed unused accounts with o/d and reduce limit on your cards if you have other credit cards. This is because the credit usage percentage might be high(of all available credit in your name vis remaining balance). But if you pay off your other credit cards in full every month or leave a small balance, then it is good. Lenders like to see the total amount of credit on file - o/d, credit card limits, loan etc vs outstanding balances . It is advisable to have less than 30%.

ScRiMpNsAvE_2

noah271007 wrote: »

Hi in response to your questions

a) It takes 4-6 weeks before it updated on credit file

b)It is MORE harder to get decent credit rates. If you have a good credit history with good income, it should not be a problem. However if you have missed payment recently (in the last 12 months), this might be a problem.

To answer the above quote, it can be counter productive if you closed unused accounts with o/d and reduce limit on your cards if you have other credit cards. This is because the credit usage percentage might be high(of all available credit in your name vis remaining balance). But if you pay off your other credit cards in full every month or leave a small balance, then it is good. Lenders like to see the total amount of credit on file - o/d, credit card limits, loan etc vs outstanding balances . It is advisable to have less than 30%.

Thanks noah271007 - based on your response I thought I'd better apply now ahead of when the accounts are removed from my file, and am please to say got accepted! The limit is only slightly short of the ideal but I won't complain under the current circumstances...

Thanks again! :money:

noah271007

ScRiMpNsAvE wrote: »

Thanks noah271007 - based on your response I thought I'd better apply now ahead of when the accounts are removed from my file, and am please to say got accepted! The limit is only slightly short of the ideal but I won't complain under the current circumstances...

Thanks again! :money:

You're welcome! Congratulations! You have done the right thing in applying now ahead of time. Who accepted you?

ScRiMpNsAvE_2

noah271007 wrote: »

You're welcome! Congratulations! You have done the right thing in applying now ahead of time. Who accepted you?

It was Tesco with their 0% for 14 months - if all goes well that should cover me until I'm debt free!

Animaladmin

My husband and I are about to begin DMP's with 5 credit card companies as we have reached a point that we cannot afford our monthly payments. We also have an overdraft "leftover" from changing bank accounts to one without an overdraft. The DMP adviser has counted it in our total debt and my husband is happy for this to happen, but I am worried that a Bank Overdraft that is showing on our Credit History as not being honoured is going to "look" worse than the Credit Card Debts. Is there a difference between the impact different offences make on one's Credit History or is one offence the same as another?