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

DrScotsman

Moggles wrote: »

Two checks in almost 4 months isn't much to worry about, but it would be sensible to leave applications for credit alone for a bit.

I completely ignored your advice, even thought you're not the only person to have given me it...and I managed to get the Capital One Classic card!

Don't get me wrong, it was a stupid thing to do, and I appreciate that your advice was 98% the way to go...but I guess the criteria for getting the credit rating building cards is very low. Maybe their target audience is those who JUST got rejected for better cards.

Moggles_2

DrScotsman wrote: »

I completely ignored your advice, even though you're not the only person to have given me it and I managed to get the Capital One Classic card! Don't get me wrong, it was a stupid thing to do and I appreciate that your advice was 98% the way to go, but I guess the criteria for getting the credit rating building cards is very low. Maybe their target audience is those who JUST got rejected for better cards.

When giving advice that may be read by goodness knows how many newbies, I feel compelled to err on the cautious side. I'm only too glad to be proved wrong in your case.;)

Congratulations & thanks for your feedback
:beer:

weebubbles

Hi, my question is regarding the percentage of available credit I am using.
Currently this is what is in my report:

You have £1,903 of available credit (excluding mortgages)
You have £17,562 of outstanding debt (excluding mortgages and defaults)
You are using 80% of your available credit

I do not understand where the 80% figure is from as if I owe £17,562 and I
have £1,903 available then the total credit companies are giving me is
£19465 ( £17,562 and £1,903 added together).

Owing £17,562 of £19465 means I am using 90% of my available credit. Can
anyone explain how the 80% is calculated?

Moggles_2

weebubbles wrote: »

My question is regarding the percentage of available credit I am using .... I do not understand where the 80% figure is from ... Can anyone explain how the 80% is calculated?

No, but I wouldn't get bogged down with this calculation, which is after all just a snapshot of your finances.

In addition to the number of accounts in use, lenders look at the extent their credit limits have been utilised. Maxed out accounts like yours make you look stretched, so it's wise to leave more headroom. I would certainly pay down the balance of one of your cards and wait for this to show on your credit reports before you submit a credit card application. Usual advice is to pay off the card with the highest APR first, since this reduces the interest you pay.

charliebubbles13

Hi, I want to know if there is any way i can do anything about my credit rating being affected by payments not being made when it was due to the fact that the company didn't take the money via a direct debit that had been set up?

Moggles_2

charliebubbles13 wrote: »

I want to know if there is any way I can do anything about my credit rating being affected by payments not being made when it was due to the fact that the company didn't take the money via a direct debit that had been set up?

That's the beauty of direct debit payments. Once a DD is active on your account, it's the originator's responsibility, not yours, to make sure the repayments are collected at the right time.

charliebubbles13

Ok, thanks for that, but i still don't understand - does that mean that it shouldn't have any effect on my credit rating or does it mean that it is easier to do something about it?

MissHB-AFC

Hello

Looking for some advice - we moved into our property last September, and the previous tenants have not changed their address with their creditors, which include mobile phone bills, broadband, credit cards, catalogues, the lot!

We don't want pass on their forwarding address, and as I believe that's not our responsibility - BUT - I'm now at the stage where I'm not only sick of receiving their post daily, but also I believe it is affecting our credit rating as we are bieng associated with those tenants, who still probably appear to live at our address - even though they don't.

Any ideas who we can talk to, to tell them to remove files of these old tenants from being at our address?

Thanks all!

John_Pierpoint

They have done a runner.
Scribble "Gone away - return to sender" on the envelopes and post back once a week.

If you are paying the council tax and register as voters this stuff will dry up eventually.

You might get visits from men in big boots, so don't let them in.

YBNB

YBNB wrote:

My sister wants to apply for credit (new mobile phone account); she currently has no credit except for one credit card which she pays off every month. She registered with Experian and she's not on the electoral roll (according to Experian). She's been at the address for 9 years and has voted, most recently in last year's local council elections.Under "Electoral Roll Information" on her Experian report, there is 1 record held, which reads as follows:
Address: SOME Road, SOME Town, SOME Postcode. (All correct)
Names and dates: No names listed on Voters Roll.
On Experian's "My Details" page, where it says "The following information will be used for your order:", her address is correctly listed as:
SOME House Name, SOME Road, SOME Town, SOME Postcode.
Is that, as it seems, an anomaly?

Moggles wrote: »

This is quite common, particularly where a house name is concerned. The agencies collate info from 3 main sources 1) you 2) public records 3) their clients, the lenders. Obviously, this info' is only as accurate as its sources.

I would inspect the electoral roll. She can do this at her nearest public library.* Pay particular attention to the way her details are recorded on the register. First name(s) as well as surname. Also an extra line may be inserted/omitted or the order reversed, as you've discovered, where a house name is involved. You'd be surprised how often this happens.

When she applies for credit facilities, bank accounts etc.or to the credit reference agencies, ensure her address matches the details as they appear on the electoral register and she'll avoid all the inconvenience of sending documents through the post as proof of residency, because her ID can be checked electronically using the electoral roll. More importantly, her electoral roll status can mean the difference between acceptance and rejection.

*If she opted out of the edited register (which is sold to anyone who wants to buy and which may be viewed in a public library), she can check the full version at her local electoral registration office

Thanks for the help so far, and now I'm following up on this, and requesting opinions at the end. So she went to the local Electoral Services office to check, and, sure enough, the address was incorrect. She informed Credit Expert, and they changed it, but it's still wrong - they changed it to something slightly different, with the effect that her report still shows her as not being present on the electoral roll at her address. Very frustrating, but she's back on to them to try and sort that out once and for all.

Meantime, she really wants to get going with her mobile phone (monthly contract) application. Here's her current Credit Report (in brief). I'd be very grateful to be told your considered opinions on her chances of getting accepted for an 18 or 24-month mobile contract of around £35 per month based on the following:

her_report wrote:

You have £260 of outstanding debt (excluding mortgages and defaults)
You have £140 of available credit (excluding mortgages)
You are using 65% of your available credit
You have 2 credit accounts (including settled accounts)
You have 0 accounts overdue
You have missed 0 repayments in the last year
Your credit report has been viewed 0 times in the last 3 months and 1 times in total over the last year
You have 0 public information records
You have 0 aliases and/or financial associations
You have been at your current address for 8 years 8 months
You are not on the electoral roll at your current address
You have 0 notice of correction on your credit report

All help gratefully received. :T