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

LittleMissAspie

Hi can someone help. I have just checked my credit report and it says there is/was a payment one month in arrears from 2006. This is from a catalogue. I didn't realise I even still had an account at this catalogue, but apparently I have because I've just managed to sign into their website.

So, their account history only goes back six months. What do I do about this arrears thing, can I get it taken off my report? Or do I have to leave it? How long will it take to drop off? What if I close the account, or will that make things worse?

Also on my credit report is a credit card from "Creation (Cust Services)". I have no idea what this is. It was last updated in 2005. How do I find out what this is and close it?

Thanks for any help.

CannyJock

LittleMissAspie wrote: »

Hi can someone help. I have just checked my credit report and it says there is/was a payment one month in arrears from 2006. This is from a catalogue. I didn't realise I even still had an account at this catalogue, but apparently I have because I've just managed to sign into their website.

So, their account history only goes back six months. What do I do about this arrears thing, can I get it taken off my report? Or do I have to leave it? How long will it take to drop off? What if I close the account, or will that make things worse?

Also on my credit report is a credit card from "Creation (Cust Services)". I have no idea what this is. It was last updated in 2005. How do I find out what this is and close it?

Thanks for any help.

How exactly is the arrears being reported? and what's the status of the account?

If you contact the catalogue and quote your account number from the details on the website you should be able to make a payment and ask for your account to be closed and reported as settled with the credit reference agencies (CRA's). An account will stay on your credit report for 6 years after it's settled.

If the account is showing differently to your other credit accounts and you don't want it to stay like that on your report for 6 years then you'd have to put it in writing to the catalogue company - basically complaining that they have kept the account open, hadn't informed you, that you had not missed a payment etc etc and offer to make the payment with the agreement that they rectify the details they are reporting to the CRA's.

You should have contact details for Creation at the top of your credit report. You just write to them telling them that you are not aware of any accounts with them and want them to close your account, mark it as settled with the CRA's and confirm this to you in writing. If you don't know your account number you just give them your name and address and let them do the search. (This happens more often than you think when people with clipboards at airports and shopping centres stop you for a minute of your time).

rictus123

How long does it take for searches to fall off your report? I have alot recently, cant wait to see it all clear when im hopefully debt free.

CannyJock

rictus123 wrote: »

How long does it take for searches to fall off your report? I have alot recently, cant wait to see it all clear when im hopefully debt free.

12 months for searches to disappear but spoke to an underwriter recently who swore on their mother's eyes they don't count after 6 months. :rolleyes:

LittleMissAspie

Thanks for replying CannyJock. The account is marked as settled. If I rack my brains, I think I bought something and stupidly forgot to make a manual payment, or maybe I got the due date wrong. They sent me a letter or an email saying my payment was late so I paid it immediately. So it is marked down as a month's arrears. I've just been declined for a credit card and this must be the reason, everything else is green. I can't believe they declined me for that. Will this mean I won't be able to buy a house, we want to buy next year

The Creation thing is also marked as settled, does that mean I closed it then? I assumed closed accounts wouldn't show.

There are no contact details for companies on this report btw. It's an Equifax free report.

berrya1

Hi, I have just run a credit report with Equifax. I am quite happy but also unsure/worried about my results. I was fully expecting a couple of bad debts / transactions to show up; 1 being a mobile phone contract about 4 years ago and a TV purchase on finance about 5 years ago.

None of these transactions have appeared on my account. 1. This believes me to think they are actually over 6 years old and therefore removed. This would be great but I actually think they have been missed off the report. Mainly due to the fact that at the time I obtained these debts I was at a different address that has not come up on my report so I am guessing has not been linked.

What would you advise I do....keep quiet?? The 2. main reasons I ask are:

1. I am currently getting chased by McKenzie Hall for the TV debt. No problem staying quiet but would like to know when they will go away!! i.e. 6 year period.

2.If I was to go for a mortgage, will the above debts be known/found by the bank and be held against me???

Any help, advice would be much appreciated.

Thanks.

Moggles_2

LittleMissAspie wrote: »

The account is marked as settled. If I rack my brains, I think I bought something and stupidly forgot to make a manual payment or maybe I got the due date wrong. They sent me a letter or an email saying my payment was late so I paid it immediately. So it is marked down as a month's arrears.

A month's arrears would disappear from view after 36 months (Experian), 48 months (Equifax), provided that you keep the account open. If you close the account, it stays there for 6 years from the date you settled

I've just been declined for a credit card and this must be the reason, everything else is green. I can't believe they declined me for that.

There are any number of reasons why a given lender may refuse to extend credit, so I'd keep an open mind.

For tips to improve your chances of credit card acceptance, have a look at the *Credit Rating: how it works and how to improve it guide* especially Martin's *Manage and Improve your credit score* article, which triggered this thread

http://www.moneysavingexpert.com/banking/credit-rating-credit-score#improve

Moggles_2

berrya1 wrote: »

I have just run a credit report with Equifax. I was fully expecting a couple of bad debts to show up; 1 being a mobile phone contract about 4 years ago and a TV purchase on finance about 5 years ago. None of these transactions have appeared on my account. 1. What would you advise I do....keep quiet?

We cannot be absolutely certain which providers report to/search a particular agency's files (lenders do not disclose this information) but it's known that most use Experian, so that one matters more. For links, see page 1 of the *How to obtain credit reports* sticky.

LittleMissAspie

Moggles wrote: »

A month's arrears would disappear from view after 36 months (Experian), 48 months (Equifax), provided that you keep the account open. If you close the account, it stays there for 6 years from the date you settled

So "settled" does mean closed? That means it's not going to go away until 2013. How come I can still log into their website? Should I close the online account too?

Moggles wrote: »

There are any number of reasons why a given lender may refuse to extend credit, so I'd keep an open mind.

For tips to improve your chances of credit card acceptance, have a look at the *Credit Rating: how it works and how to improve it guide* especially Martin's *Manage and Improve your credit score* article, which triggered this thread

http://www.moneysavingexpert.com/banking/credit-rating-credit-score#improve

I can't see any other reason, or anything I can do to improve my rating. I'm on the electoral roll. I have one credit card which, if used, is paid in full by direct debit. I have no late payments except for this one. I've never taken a loan. I had no other credit searches on my account. I've been with my employer for 6 years and my bank for 7 years. I rent so I move every couple of years but we can't buy right now, we haven't finished our deposit yet. I don't see any other reason, unless this Equifax report is missing something.

Moggles_2

LittleMissAspie wrote: »

So "settled" does mean closed?

Yes.

That means it's not going to go away until 2013.

Well, 2012 anyway.

However, it's your payment history with all your creditors over the last 6 years that counts, with particular emphasis on the most recent 12 months, so the significance of these arrears diminishes as they recede into the background.

We cannot be absolutely certain which credit card providers search a particular agency's files (lenders do not disclose this information), but it's known that most use Experian, so that one matters more. I would definitely order your Experian credit report and see what's on there. For help, see page 1 of the *How to obtain credit reports* sticky.

Experian sends well-written notes which explain terms like "settled" and much else besides or if you go for the free trial, this info' is available online. I wouldn't pay for a credit score though.

Very best
M