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

Mindspace

Hello all....quick question. Does going over agreed OD limit on my current account affect my credit rating? Not regularly...but I have been over twice this year.

Can anyone pls let me know?

Moggles_2

Mindspace wrote: »

Does going over agreed OD limit on my current account affect my credit rating? Not regularly, but I have been over twice this year.

It's difficult to give a definitive answer.

Depends, to some extent, on how long you were over the limit on each occasion. I would check credit files to see what's on there, before applying for new credit. For help, see page 1 of the *How to obtain credit reports* sticky.

You'll see that the status codes shown on current accounts have a different meaning from those associated with credit cards. Banks vary in their use of these codes and the data they report to the credit reference agencies.

butterfly72

I've just checked my file and had to put my addresses in for the past 6 years. What happens to any new applications/problems in address prior to this? For example, what if someone dodgy moves in to an address where I lived say 8/9 years ago and applies for a credit card in my name after getting some junk mail? Would this show on my recent file??

thanks

Moggles_2

butterfly72 wrote: »

I've just checked my file and had to put my addresses in for the past 6 years. What happens to any new applications/problems in address prior to this? For example, what if someone dodgy moves in to an address where I lived say 8/9 years ago and applies for a credit card in my name after getting some junk mail?

Only data that can be independently corroborated is used for credit scoring purposes.

Lenders reject applicants whose identity cannot be verified via the CRAs, which in turn collate data from public records such as the electoral register. If the fraudster was not on the electoral roll at your previous address, their application would fall at the first hurdle.

Bogle

Moggles wrote: »

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?

It automatically found the address, I live in a block of apartments and I have had that issue with other companies where my address sometimes doesnt include the building name, do you think its worth contacting my bank and credit card company to ask them to update the credit agencies.

Moggles_2

Bogle wrote: »

It automatically found the address, I live in a block of apartments and I have had that issue with other companies where my address sometimes doesn't include the building name. Do you think its worth contacting my bank and credit card company to ask them to update the credit agencies.

Yes, I suspect your address is the nub of your problem. In fact I'd put money on it.

If I were you, I'd inspect the electoral roll. You can do this at your nearest public library. Pay particular attention to the format of your address. An extra line may be inserted/omitted or the order reversed, where a block of apartments is involved. You'd be surprised how often discrepancies arise. It's not necessarily an error. Very often it comes down to a difference of opinion as to how an address should be formatted rather than an actual mistake.

With luck, the ER and Postal Address Finder formats will match and it'll be purely a question of sticking with that version. Provided that you're consistent when you apply for credit facilities, bank accounts or to the credit reference agencies, you should be okay.

P.S. Don't worry if your address is formatted differently on council tax bills and the like. That's of no consequence, but the electoral roll version counts when applying for credit

Bogle

Moggles wrote: »

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.

Thanks for this, I have now ordered a report off experian and my credit score with them is 970!!!! putting me in the excellent catergory!!! so with them im at the top of the scale but with equifax I am rated as very poor!!! how bizarre!! Well I think it is now obvious which company the credit card company used in my example!!! But how can they be so far apart!! Is it just a case do you think of equifax cocking up and not updating my records. I have sent them a request to investigate on their online system and will see what they have to say on the matter

Moggles_2

Bogle wrote: »

I think it is now obvious which agency the credit card company used in my example!

You can check for certain, because each search leaves a footprint on your credit reports more or less in real time.

Is it just a case do you think of Equifax cocking up and not updating my records?

Certainly sounds as though updates have not found their way onto your file since your move almost a year ago. If there are different versions of your current address in use, this could have something to do with it.

If Equifax are able to shed any light, please keep us posted.

Very best
M

Bogle

Moggles wrote: »

You can check for certain, because each search leaves a footprint on your credit reports more or less in real time.
Certainly sounds as though updates have not found their way onto your file since your move almost a year ago. If there are different versions of your current address in use, this could have something to do with it.

If Equifax are able to shed any light, please keep us posted.

Very best
M

Thanks yes, ive found that screen on my equifax report and they performed a search but not one on experian.

Will report back on here when equifax come back to me

Igor_bristol

Hi!
A while age I was using a Credit Card from Halifax. Cancelled it. But checked my Credit Report on Experian and still can see it on as:
Halifax Credit Card >> Status=Satisfactory >> Balance=Settled >> Update=01/03/2009.
Does it mean I'm still having that card although I've cancelled it half a year ago?
Thanks
Igor