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

Moggles_2

score wrote: »

I thought that savings accounts are not credit searched, has this changed?

Please see #610 above

savagej

F.A.O CannyJock


First Direct

Financial Associations - How your Data is Used

A financial association is created where you share a financial commitment with another. For an application which may involve borrowing (current account, loan, credit card, etc.), your Credit Reference Agency records may be cross checked for financial associations. This process enables us to form a more accurate view of your existing financial commitments.

Caboot Financail

We may also provide details to the credit reference agencies with regular information about you and any financial associate if you have one, for example, a person with whom you have, or have had, joint personal financial arrangements such as joint accounts or have made joint credit applications (this includes asking for a secondary cardholder).

Marbles Credit Card

b) Link together the records of you and anyone that you have advised is your financial associate including previous and subsequent names of parties to the account. Links between financial associates will remain on your and their files until such a time as you or your partner successfully files for a disassociation with the credit reference agencies. Please note marbles credit card, not sure if you can still get one but the point is made.


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If false or inaccurate information is provided and fraud is identified or suspected, details may be passed to fraud prevention agencies.
We may also obtain information about you from fraud prevention agencies.
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We may obtain information about you from credit reference agencies records to check your credit status and identity. The agencies will record our enquiries which may be seen by other companies who make their own credit enquiries. We may use credit scoring.
Your application will be assessed using credit reference agency records relating to anyone with whom you have a joint account or similar financial association. If this is a joint application and such a link does not already exist then one may be created now. These links will remain until you file a "notice of disassociation" at the credit reference agencies.
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This list goes on and on and on and on.

CannyJock

score wrote: »

Hi
I thought that savings accounts are not credit searched, has this changed?

As Moggles said (using psychic abilities to answer before you asked:)) No change for savings accounts - no credit with them so no searches. All of my searches are for current accounts and credit cards. None of my new savings accounts required a search.

CannyJock

Bit of snipping needed ...

savagej wrote: »

Caboot Financial - (this includes asking for a secondary cardholder).

This list goes on and on and on and on.

The Caboot one is the odd one out from what I'm reading.

The terms on the rest are generic "we'll search financial associations where they exist", doesn't say that a secondary card-holder creates a financial association or that the secondary card-holder will be searched.

I'm looking at a copy of someone's credit report where they've asked me for a bit of advice, they have lots of financial associations with their wife and wife is a secondary card holder on almost all of their credit cards, but none of the financial associations have been created from their card people.

Still, if Caboot do it then you've convinced me that it can happen

Always good to learn new things

Moggles_2

CannyJock wrote: »

As Moggles said (using psychic abilities to answer before you asked) no change for savings accounts - no credit with them so no searches.

Lol. Some questions are so predictable, you don't need a crystal ball

savagej

CannyJock wrote: »

Bit of snipping needed ...



The Caboot one is the odd one out from what I'm reading.

The terms on the rest are generic "we'll search financial associations where they exist", doesn't say that a secondary card-holder creates a financial association or that the secondary card-holder will be searched.

I'm looking at a copy of someone's credit report where they've asked me for a bit of advice, they have lots of financial associations with their wife and wife is a secondary card holder on almost all of their credit cards, but none of the financial associations have been created from their card people.

Still, if Caboot do it then you've convinced me that it can happen

Always good to learn new things

Beleive me it does, as I said neither the principle cardholder and hence liable for the debts want it and the banks dont want bad debts on their book.

If you want a definitely answer I would recommended asking for a reply in writing as the people on the phone only have "interperable" scripts to read out that even they dont always undersands.

Sorry if I was argumentative it is just becoming more and more industry practice to check secondary cardholders i.e. time at home, previous address etc etc., and then link them as financial associates.

To the banks a few checks now stops thousands being lost down the line.

savagej

found another thread on MSE, someone pulling their hair out over the subject.

http://forums.moneysavingexpert.com/showthread.html?p=22151323

underthematress

Hi, I apologise in advance for the length of this post, but I am hping someone can clarif a few things for me..

1)I moved to the UK 3 years ago and took out a mobile phone contract against my better judgement before I even had a bank account or job, the salesman sold it to me that if I put £100 down I would get it back in 3 quarters, which I did. However, because I had yet to get a bank account I had to go into the shop and pay my bill each month. I ended up paying my mobile bill late for several months to the point where they would threaten to cut off my phone if I didn't pay. I didn't realsie at the time that this aparently goes against your credit rating. Is this condidered a default? Can someone clarify if my credit rating is affected for 6 years for having done this. I know it sounds really stupid and naive, but at the time I didnt realise a mobile phone contract was a form of credit. I've never had the need for credit before and now I'm st the stage where I am saving for a deposit on a flat and would like a mortgage in the next couple of years. I recently got my first credit card which has 4400k limit and I have it set up direct debit to be paid off each month in full and I have been using it and paying it off no problem.

2) My flatmates brother bumped a loan and used our address to the point that debt collectors were calling to the house. He has recently declared himself bankrupt/cva and used our address. My flatmate has assured me that his bad debt is against his name and not this address but if that is really the case why didn't he use his own address or whay has his parents not wanted him using theirs?

3)The bills in the flat are in both our names but come out of my flatmates account. Should I have some coming out of my account? I heard that it is not having the bills in your name that improves your score but the direct debits.

A while ago I requested a free credit check from experian, i think it was, and they replied saying they needed proof of residence, is this a bad sign?

Moggles_2

underthematress wrote: »

I moved to the UK 3 years ago and took out a mobile phone contract against my better judgement before I even had a bank account or job. The salesman sold it to me that if I put £100 down I would get it back in 3 quarters, which I did. However, because I had yet to get a bank account I had to go into the shop and pay my bill each month. I ended up paying my mobile bill late for several months to the point where they would threaten to cut off my phone if I didn't pay. I didn't realsie at the time that this apparently goes against your credit rating. Is this condidered a default? Can someone clarify if my credit rating is affected for 6 years for having done this?

If you've missed payments ( ie. not late, but missed altogether) for up to 3 months, then normally you are marked as "in arrears" A default notice would usually only be issued if you have gone more than 3 months in arrears and then you're notified that a default notice has been registered with the CRAs.

A default would indeed stay on your credit file for 6 years, however 3 months of arrears would generally disappear from view after 36 months (Experian), 48 months (Equifax), provided that you keep the account open and active.

Moggles_2

underthematress wrote: »

My flatmate's brother bumped a loan and used our address to the point that debt collectors were calling to the house. He has recently declared himself bankrupt and used our address. My flatmate has assured me that his bad debt is against his name and not this address, but if that is really the case, why didn't he use his own address or why has his parents not wanted him using theirs?

Credit ratings assess people, not dwellings.

If you share a financial product (eg. mortgage) with someone else, then you are
financially linked to them and their affairs could have an effect on your credit rating, but simply occupying the same house as somebody with a poor credit history, has no effect whatsoever