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

Moggles_2

magicsushi wrote: »

I have an M&S Money credit card with a balance of just over £600 (It was 10 months 0% on all purchases when I got it earlier this year). I've been making the minimum payment, though perhaps crucially my very first payment was late due to a misunderstanding (I thought it was already set up to take the minimum amount from my current account but it wasn't)... I guess what I'm wanting to know is if paying off my credit card in full, now, will improve my credit rating

What's the credit limit on your M&S card?
Also, when does your 0% on purchases promotion expire?

Sir_Edward_Tedworth

I am in a bit of a pickle.


I was issued A CCJ back in November 2008, thankfully I have been paying more than the agreed minimum amount and it should in theory be paid of this coming November.


At the moment I currently have 5 active credit accounts; an etra two being settle and closed for inactivity. I have the usual agreements; a mobile phone contract with Vodafone, a cataloge, TV/Laptop agreements and a current account with A & L. In the last 18 month's of opening each and every account, I have never ended up missing a payment, I either always pay the minimum repayment fees or above. I am trying quite hard after receiving the CCJ to rebuild my credit report, if I continue like this should it help to some degree?


Now the real problem, having looked and studied my report I have found out that Three mobile have issued me with a default. I have never actually had a contract with Three or have been a customer of theirs, which obviously prompted me into sending this letter in the hopes it'll be corrected:

The Appeals Officer
Credit Referrals,
Three,
123, Vincent Street
Glasgow,
G2 5EA

Dear Sir/Madam

Ref: xxxxxxxxxxx

You have left a default on my credit report regarding the account with the above reference number, which you claim is owed by myself.

I would point out that I have no knowledge of any such debt being owed to Three.

I am familiar with the ‘Office of Fair Trading Debt Collection Guidance’ which states that it is unfair to send demands for payment to an individual when it is uncertain that they are the debtor in question.

I would also point out that the OFT say under the Guidance that it is unfair to pursue third parties for payment when they are not liable. In not ceasing collection activity whilst investigating a reasonably queried or disputed debt you are using deceptive/and or unfair methods.

Furthermore, ignoring and/or disregarding claims that debts have been settled or are disputed and continuing to make unjustified demands for payment amounts to physical/psychological harassment.

I would ask that there be a removal made concerning the above accounts/default unless you can provide evidence as to my liability for the debt in question.

I await your written confirmation that this matter is now closed. Otherwise I will have no option but to make a complaint to the trading standards department and consider informing the OFT of your actions.

I look forward to your reply.

Yours faithfully,

Unfortuantely Three haven't responsed so I have had a notice of correction placed on my file, Credit Expert have been involved and debt collection agencies are constantly knocking on my parents doors demanding monies for something that rightfully isn't mine to pay. I am just really at a wits end and don't know what else to do, I am trying so hard to build up a good credit report yet this keeps standing in my way. Any suggestions?

magicsushi

Moggles wrote: »

What's the credit limit on your M&S card?
Also, when does your 0% on purchases promotion expire?

The credit limit is £2500 and the 0% expires in January I think. It might be February.

Moggles_2

magicsushi wrote: »

I guess what I'm wanting to know is if paying off my credit card in full, now, will improve my credit rating and if not, is it possible that the single late payment is what is stopping me being approved for this new phone?... The credit limit is £2500 and the 0% expires in January I think. It might be February.

With a healthy used to available credit ratio like this, paying off your balance would not improve your credit rating, IMO

What's more, you'd stand to lose the benefit of 4 or 5 months at 0% with M&S.

Is it possible that the single late payment is what is stopping me being approved for this new phone?

In the context of a brief 5 or 6 months payment history, this certainly won't have done you any favours. The effect is fairly short-lived though. 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.

Your slip-up with M&S becomes steadily less significant as time goes by. By next January, your credit files should look something like this:
0000100000
showing that you've maintained your account perfectly ever since

magicsushi

Thanks for your help Moggles. So it seems it's just a case of playing the waiting game then.

Moggles_2

magicsushi wrote: »

Thanks for your help Moggles. So it seems it's just a case of playing the waiting game then.

In this case, yes. Building a good credit history takes time. You're well on the way, but there are no short-cuts, unfortunately.

Bogle

Hi, wonder if someone can help me. I moved house almost a year ago. I did all the right things by getting myself on the voters roll straight away and informing all the companies I deal with of my new address the day I moved in. I have about £1000 on a credit card (£4000.00 limit) a loan with £7000 left to pay off which is with my bank. I have allways had a excellant credit history and score in the past. I earn over 40k a year. I have never missed a payment on anything in 15 years and have always been carefull with money

Since moving house I have not applied for anything until last month, when I changed my mobile contract to o2 and had to pay £100 deposit because of poor credit score!

I was really miffed by this and contacted equifax and it appeared that they had not got me on the voters roll!, they corrected this in a matter of days and I thought this would be the end of any problems.

However last week I was declined for a new credit card, (to take advantage of 0% offer I have only switched twice before in the last 15 years! and the last time was 3 years ago!) Again the reason given was unsatisfactory credit rating!!! I found this especially odd as one of my colleagues applied for exactly the same card the day before and was accepted!! and she has had CCJ's in the past!!.

I called Equifax again and ordered an actual credit score, my credit score has gone down from over 400 to 280 in the last year!!! im completly baffled Equifax suggested the main reason could be that its because my arrangements are still listed under my old address and that I should contact my bank and credit card company to update my details!!, but I did that a year ago and recieve regular post from both my bank and credit card company so they definatly have my correct details!!.

Im at a complete loss what to do!

Moggles_2

Bogle wrote: »

Since moving house I have not applied for anything until last month, when I changed my mobile contract to O2 and had to pay £100 deposit because of poor credit score! I was really miffed by this and contacted Equifax. It appeared that they had not got me on the voters' roll. They corrected this in a matter of days and I thought this would be the end of any problems. However last week I was declined for a new credit card ...

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 credit report from Experian and see what's on there. For help, see page 1 of the *How to obtain credit reports* sticky. In particular, you need to check the all-important electoral status is correctly recorded. If not, whatever the reason(s), you'll struggle to get new credit.

Moggles_2

Bogle wrote: »

I called Equifax again and ordered an actual credit score. My credit score has gone down from over 400 to 280 in the last year. Equifax suggested the main reason could be that my arrangements are still listed under my old address and that I should contact my bank and credit card company to update my details, but I did that a year ago and receive regular post from both my bank and credit card company so they definitely have my correct details.

Obviously, the possibility that both your bank and your credit card provider neglected to update the CRAs when you moved, can be discounted.

It sounds as though no new updates have found their way onto credit files since you moved house.

Was your recent cc application made online? Did your new address pop up automatically on entering your postcode or did you have to enter each line manually?

heloid

Question regarding Electoral Roll registration. I'm enrolled at my current address (now 6 months) and this is showing up fine with Experian and Equifax. However due the numerous ways of entering it my previous address (6 months living there also) it is not showing up as enrolled with the CRA's even though I was.
Does my previous address matter? Will my chances improve by getting them to correct this?
Thx