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

CannyJock

owitemisermusa wrote: »

I'm on the electoral roll but current address not showing up - previous addresses are.

Your electoral entry will show the address you're registered at. Worth updating the electoral entry by being on the register at your current address. If you are and the information at the CRA is wrong, then it's worth writing to them to request they update it.

owitemisermusa wrote: »

What do the words "settled or satisfied" mean? Does this mean that the accounts in question (old mobile phone and credit card) are closed?

Yup - done and dusted. They'll stay there for 6 years after the settlement date.

owitemisermusa wrote: »

What's the effect of "not updated"? A few credit card/current accounts have one or two months that have the symbol for "not updated" on. Should I do anything or just ignore?

Just ignore. I tend to see these for a couple of months with new cards.

CannyJock

Zack1 wrote: »

Is there any way to minimise the damage that moving about will cause? And how much would it affect me in future?

Don't tell anyone about it. As these are only temporary lodgings, keep your "permanent address" at your parents address. It'll give you an excuse to call and say hi if you don't want to set up mail forwarding

Zack1 wrote: »

Would having 2+ cards and using & paying both of them prove to be more beneficial in the long run?

It would demonstrate an ability to manage the credit responsibly. Course, it's also there as a temptation to spend, but that's up to you to manage.

Zack1 wrote: »

As for the address thing, would a PO box be an option? Or would the likes of Natwest not be happy billing to them/it would look dodgy I suppose?

Nope, PO boxes not an option, but not necessary - keep it simple - use parent's address.

Zack1 wrote: »

And is there anything I could do to improve my rating to help offset the bad things? I'm on the electoral roll etc here (got it done in April ahead of phone application), but I'll have to get it redone at uni.

Says who? Remember people are looking for stability, time with bank, time at current address, time in employment (if relevant) all count in your favour.

The main thing you can do to improve your rating is not to do anything to damage it - don't miss payments, don't default on debts.

CannyJock

Netermoon wrote: »

Hi Canny Jock, many thanks for your reply. I have a small loan of 700, which i am paying monthly. As for the ccj and default these were removed by a court judge, as they had been put unlawfully onto my bank account and credit report, as i had maintained monthly payments to my creditor, through the credit counselling service, and had kept them informed at all times, of my situation, my divorce had sent my financial state into a mess. I spent 18 months repairing my credit report, fighting Experian to remove incorrect information from my credit file, they had someone elses accounts on there! My credit score is now very high, and i have no unpaid accounts apart from the one loan. My own bank refused my application for a current account, even though i was accepted for a loan, by another company.

Hmmm, sounds like you've done all of the right things. If your credit report with Experian is now "clean" then that can't be the source of the problem.

Have you checked with Equifax and Call Credit? Do you still have a financial association recorded with your ex? Might be worth looking to have that removed if any of them still show it.

There's always the possibility that everything is clean but they've decided you don't fit their lending profile - in which case you're left with the credit builder cards.

Zack1

CannyJock wrote: »

Don't tell anyone about it. As these are only temporary lodgings, keep your "permanent address" at your parents address. It'll give you an excuse to call and say hi if you don't want to set up mail forwarding

Sorry I should have said, but it's not an option to carry on using this address, it's not my parents' address, so I'll have to change it, especially as some websites are/will be picky about where to deliver too (must deliver to cardholders address, which if that's set as here won't be possible). I’m hoping I’ll get somewhere permanent for this time next year, so it’s only 2 moves shown (3 addresses)

CannyJock wrote: »

It would demonstrate an ability to manage the credit responsibly. Course, it's also there as a temptation to spend, but that's up to you to manage.

So they won't look and be like oh he's got a £35 contract, plus £300 of his Natwest credit limit left, plus X of this limit, plus X of that limit - as a student how would he pay that back if he were to use it all? Plus I’m assuming my potential interest free overdraft (which if I get I’m going to take and put in savings) would also show up if I’m using it

CannyJock wrote: »

The main thing you can do to improve your rating is not to do anything to damage it - don't miss payments, don't default on debts.

Yea, that's why I was really considering whether Vanquis was worth it and so cancelled it, because I know I’m going to get great payment records from o2 & Natwest, and any other online type ones that I get approved for, but because they don't seem to have an online system I don't want to take the risk of not paying on time/correctly, especially with the move and everything and potential to miss letters

Thanks for your advice . It’s a shame I can’t stay registered here, but I’ll just have to try and do everything else well. I’ll def apply for the other cards once I’ve got a decision on my overdraft (3 weeks because of results day). Are there any you would recommend considering I got and turned down Vanquis but I’ve also been rejected for Capital One (no idea why, I know people with awful credit who are with them, maybe they just want the money from people that are known not to pay up on time….)

marial

Hi,
I'm wanting to apply for a loan - my credit rating is ok but I'm not being offered the interest rate that many websites quote therefore have to go through the application process to receive an accurate rate.

I have already made one application today which I have declined as the rate is higher than I have previously been quoted by another lender.

I spoke to my own bank about a fortnight ago and they offered me an ok rate.

How will it affect my credit score if I apply for one more quote today?

CannyJock

marial wrote: »

Hi,
I'm wanting to apply for a loan - my credit rating is ok but I'm not being offered the interest rate that many websites quote therefore have to go through the application process to receive an accurate rate.

I have already made one application today which I have declined as the rate is higher than I have previously been quoted by another lender.

I spoke to my own bank about a fortnight ago and they offered me an ok rate.

How will it affect my credit score if I apply for one more quote today?

Every application adds a search of your credit report.

Each search knocks a bit off your credit score. Best we can guess it's not a straight line affect on your score though

e.g. 1 search = lose a few points, 2 searches = lose 4 x number of points, 3 searches = lose 8 x number of points.

The exact number of points is anybody's guess and a bit abstract, but you get the idea.

At the end of the day, the searches drop off after 12 months (but just spoke to a senior underwriter today who swore blind they get ignored after 6 months). So if you don't mind putting a dent in your report for at least 6 months and you won't be needing any additional credit over the next 6 months then I can't see any harm in putting in another application.

I've had 9 searches in the last 3 months, mostly for high interest current and reward accounts, so safe to say I'll be keeping my hands off the applications for a while

gERRARD8

I took a £6k loan out in 2000, i struggled with the payments and had to go through a debt re-financing agency, i carried on paying the payments but at a smaller amount for years, over 7 years the loan only came down by £3500 due to intrest being placed on the account, i upped the repayments myself twice in the last 2 years and am currently paying off £300 a month which is twice the original re-payments required, should these paymetns be logged as defaults even if i am paying back on time and the arrangements have been made with the bank???

alo6

hi,

ive checked my credit file for a while now and im trying to rebuild it. paid over 7k on getting rid of a loan and car and well i noticed a few late payments to a cc with tesco. This mainly down to confusing online status, still dont understand it, just pay it twice a month now .

But the more i think about it the more i think i should have been notified of these late payments as i never recieved anything through post,. can i complain to get them removed?

Also, will paying off my HP car reduced my total debt and raise my acore as my outstanding debt hasnt went down.

thanks

CannyJock

alo6 wrote: »

hi,

ive checked my credit file for a while now and im trying to rebuild it. paid over 7k on getting rid of a loan and car and well i noticed a few late payments to a cc with tesco. This mainly down to confusing online status, still dont understand it, just pay it twice a month now .

But the more i think about it the more i think i should have been notified of these late payments as i never recieved anything through post,. can i complain to get them removed?

Also, will paying off my HP car reduced my total debt and raise my acore as my outstanding debt hasnt went down.

thanks

If you missed the payments, regardless of the reason, it'll stay because it's factually correct.

If your HP car is on your credit report then paying it off will reduce your total amount of debt which would improve your score. So long as you don't use one form of debt to clear another that is

Miss_J

Well I am at the end of my student overdraft rate with Halifax and need to make arrangements to pay it back. It runs out in 2 weeks time. Halifax will be cutting my OD by £1500 which I can't afford to pay back all at once. I called them yesterday to see what arrangement I can make and they have said that all they can do is enter into a repayment plan with me if I can't pay back the funds in time. In order to do this I have to let my account get into arrears before they will set up a payment plan. How much is this going to affect my credit rating? Also if I enter into a repayment plan with them is this also going to dent my credit score? I have 15K of debt to pay back which accumulated over my time studying and I am hoping to have it paid off in the next 2-3 years. I don't ever plan on using credit again for small purchases so the dent in my credit score won't affect me in this way but will it affect current credit that I have? i.e I have another OD on an account that I manage well but also not in a position to pay back in full and also would Credit cards start upping my APR's or reducing my credit limit so that I have loads to pay back there? I'm getting myself quite worried about it now. I am in a good position to make decent payments to reduce all my debt now that I am working. I don't think I will be able to get a graduate account else where to help with paying this OD back.