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

heloid

Igor_bristol wrote: »

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

Settled = closed, you definitely don't need to worry about any open credit account. Not sure why they are still updating on it, but have a settled on your account probably doesn't hurt at all.

Moggles_2

Igor_bristol wrote: »

I was using a credit card from Halifax. Cancelled it, but checked my credit report on Experian and can still see it 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?

No, the term "settled" indicates you have made all the necessary payments and the account has been closed on the date shown.

Experian produces guidance notes which explain this and much else besides. These are normally enclosed with reports sent by post. The same info' is available on the website
too

Moggles_2

heloid wrote: »

Not sure why they are still updating on it ...

According to the OP, the last update was 01/03/2009, just over 6 months ago. Sounds about right to me.

... but have a settled on your account probably doesn't hurt at all.

An account which is closed and marked settled, persists on your credit file for 6 years and, provided that the payment record is good, contributes positively to your credit history

Moggles_2

Moggles wrote: »

An account which is closed and marked settled, persists on your credit file for 6 years and, provided that the payment record is good, contributes positively to your credit history.

P.S. OTOH, if there's some negative data on there (eg. late or missed payments), you may want to keep the account open. That way the nasties disappear from view after 36 months (Experian), 48 months (Equifax)

willstewart

Personally don't think that any info should be given on settled accounts.

I had an O2 account a couple of years ago and twice they sent me letters demanding immediate payment of £4-8 that I hadn't paid due to the fact I never even got the bill until 4 days later (nearly 3 weeks late - also was supposed to get £16 or similar off my rental each month with I had been up to that point + xxx free minutes which I never exceeded). This gets me a couple of 1's in amongst the zeroes and pretty much paints me in a bad light.

Now I have to wait another 2 years at least to get rid of this and it's held against me.

Got a couple of 1's on my Sainsbury card that I closed 5 months ago as well - all adds up and says I regularly tend to miss payments. Whether this is counting against me I'm not sure.

Moggles_2

willstewart wrote: »

Personally don't think that any info should be given on settled accounts. I had an O2 account a couple of years ago and twice they sent me letters demanding immediate payment of £4-8 that I hadn't paid due to the fact I never even got the bill until 4 days later (nearly 3 weeks late - also was supposed to get £16 or similar off my rental each month with I had been up to that point + xxx free minutes which I never exceeded). This gets me a couple of 1's in amongst the zeroes and pretty much paints me in a bad light. Now I have to wait another 2 years at least to get rid of this and it's held against me.Got a couple of 1's on my Sainsbury card that I closed 5 months ago as well - all adds up and says I regularly tend to miss payments. Whether this is counting against me I'm not sure.

The purpose of credit files is to record credit history.
If you could erase the blemishes simply by paying up and moving on, this would defeat the object.

That said, if your accounts look something like this:
000000100001000000000000
or even this:
000000110000000000000000 (showing that you had a couple of months of difficulties, but never got more than one complete month behind in payments)
I would think you have nothing to worry about, as it will be seen that you had problems
6 months ago and you have maintained your accounts perfectly since then

Igor_bristol

heloid wrote: »

Settled = closed, you definitely don't need to worry about any open credit account. Not sure why they are still updating on it, but have a settled on your account probably doesn't hurt at all.

Feeling bit better with my Credit Score now

Thanks a lot!
Igor

Moggles_2

Igor_bristol wrote: »

Feeling bit better with my credit score now.

Well, I'm glad it's lifted your spirits, but be prepared for that score to fluctuate. Credit scores are at best a very rough guide and not worth paying extra for, tbh.

It's easy to be lulled into a false sense of security by these numbers. Then it comes as a shock, when your application is turned down. (Equally, some forum users are put off applying at all, because of low scores.)

Credit reports, when ordered directly from Experian (or Equifax) are invaluable, but to reap the most benefit, you need to read them in conjunction with the guidance notes that accompanied your Experian report. The same info' is a available on the website

Very best
M

willstewart

Moggles wrote: »

The purpose of credit files is to record credit history.
If you could erase the blemishes simply by paying up and moving on, this would defeat the object.

That said, if your accounts look something like this:
000000100001000000000000
or even this:
000000110000000000000000 (showing that you had a couple of months of difficulties, but never got more than one complete month behind in payments)
I would think you have nothing to worry about, as it will be seen that you had problems
6 months ago and you have maintained your accounts perfectly since then

I don't like the fact that I can be due to make payment of say £500 and I pay that 29 out of 30 days late and get a 1, or if I pay 5 days early and it takes 6 days for the payment to go through, I still get a 1. There's absolutely no discrimination between them.
MBNA are the worst for me. I get paid on Thursday, payment due on Monday and the payment never goes through until Tues at the earliest especially if it's due on Monday. If I pay Wed, 100% goes through by Fri.
Luckily all zeroes with them but they still hate me.

As for recording credit history, I'm fine with it if you've had a lot of problems like 2 month+ missed payments, defaults etc, but for the sake of one or two late payments in say 2-3 years (which could have been 3 years ago), I don't see what relevence that really has for a lender to see it.

razzy_b86

I took out a mobile phone contract with T Mobile around 2 years ago. Due to a large bill I arranged with the company to pay in 2 instalments, which was one card payment and one cheque payment. I was then told that the mobile phone would be re connected, but it never was (this was around September 2008).
In February of this year I received a letter from a collection agency stating that I owed £91. I rang to discuss the misunderstanding and they told me to put my concerns into writing which I did, however, I received another letter a few weeks later. I rang the collection agency again and was told to call T Mobile directly to try and resolve the issue. I did this and was told that the addition £91 was because my contract did not end untill February 2009 so I needed to pay the line rental up until this point. I reminded them that the phone was never re-connected therefore I was going to be paying for a service which I had never used but they simply said that there was nothing that they could do.
I am now finding in very difficult to obtain credit as it has appeared as a default on my profile. Any suggestions about what to do? I'm particularly worried as I am currently saving for a mortgage.