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

Prodad

Moggles wrote: »

You don't mention which card company turned you down, but bear in mind that potential lenders cannot assess the way you handle credit directly. The best indication they have is the payment history and credit limits on your existing cards with other lenders. Having three credit cards which are all maxed out, may signal over-commitment, so it's wise to leave some leeway

That said, there are any number of reasons why a given lender may refuse to extend credit. 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 gave rise to this thread.
http://www.moneysavingexpert.com/banking/credit-rating-credit-score#improve

Sorry bout that it was a BT card - MBNA I think. Just looking to find a low interest rate card to switch some borrowing to so I could start getting the balances down some. Thanks for the help:beer:

Moggles_2

Prodad wrote: »

It was a BT card, MBNA I think. Just looking to find a low interest rate card to switch some borrowing to, so I could start getting the balances down some.

MBNA is not known to score particularly harshly so, if I were you, I would concentrate on paying as much as possible off your most expensive card for a bit. Having three credit cards which are all maxed out, may signal over-commitment, so it's wise to leave
some headway

Btw, completely off topic, but do you really need that payment protection plan on your Tesco card? Cancelling the insurance could save you some money at a stroke.

Jacinta

Hey there,

I used to have a Barclaycard, and I wasn't very good at keeping track of my payments (before I discovered online banking!). I settled my last bill in 2006, and on my credit report it shows all the times I paid late.

I since haven't used my Barclaycard. On my credit report it shows that I have paid my mobile phone bill, and my overdraft on time consistently.

I am currently saving money for a deposit on a house. I would like to buy within the next 12-18 months. I have applied for an Egg Money card, as I can arrange the full amount to be paid off every month, get cashback, and I'm hoping it will improve my track record with using credit cards.

However, my Barclaycard history will remain on file for the next 4 years. 36 months worth of transactions are shown on screen. Should I have started using this card again, instead of applying for the Egg Money card?

Would appreciate comments and suggestions.

- Jacinta

thriftymomma

Jacinta wrote: »

Hey there,

I used to have a Barclaycard, and I wasn't very good at keeping track of my payments (before I discovered online banking!). I settled my last bill in 2006, and on my credit report it shows all the times I paid late.

I since haven't used my Barclaycard. On my credit report it shows that I have paid my mobile phone bill, and my overdraft on time consistently.

I am currently saving money for a deposit on a house. I would like to buy within the next 12-18 months. I have applied for an Egg Money card, as I can arrange the full amount to be paid off every month, get cashback, and I'm hoping it will improve my track record with using credit cards.

However, my Barclaycard history will remain on file for the next 4 years. 36 months worth of transactions are shown on screen. Should I have started using this card again, instead of applying for the Egg Money card?

Would appreciate comments and suggestions.

- Jacinta

I would make small purchases on the barclay card to pust the late payments off the page. Can't hurt as long as you keep the balance paid off. GO for the zeros!

BlueFleur

I've had a look through the main article but I couldn't find anything that would answer this. I've moved house a few times in the last few years being at uni and swapping halls etc. Will it make any significant impact on my credit rating if I go through and ensure that all the past addresses and dates relating to moves are correct? I haven't moved and not told anyone, but when I look on the Experian site, there are some discrepancies with dates and the way the address is listed. Any advice appreciated.

Moggles_2

BlueFleur wrote: »

I've moved house a few times in the last few years being at uni and swapping halls etc. Will it make any significant impact on my credit rating if I go through and ensure that all the past addresses and dates relating to moves are correct? I haven't moved and not told anyone, but when I look on the Experian site, there are some discrepancies with dates and the way the address is listed.

Slight discrepancies in dates may not matter now, but the way in which your current address is listed (and possibly your previous address if this is less than three years ago) is significant.

If I were you, I'd pay particular attention to the way your details are recorded on the electoral register. An extra line may be inserted/omitted, for instance, where a block of flats or house name is involved. Then notify the CRAs of any discrepancies.

When you apply for credit cards, bank accounts etc, ensure your address matches the details as they appear on the electoral register and you should be fine

harryhound

harryhound wrote: »

Did I read Martin's news letter correctly this week?

The credit agencies cannot know you have:
Been to Prison?
Got a huge student loan?

Doe this mean that the bank is not allowed to ask these questions ?

Or if they do the punter is allowed to lie?

Harry.

I know you are allowed legally to lie when you are covered by the rehabilitation of offenders act; which is kind of quick & useful if your offence was when you were a "young person". (It takes longer to become rehabilitated as an adult). .

http://www.nacro.org.uk/data/resources/nacro-2005020105.pdf

The thought that banks do not take into consideration student loan repayments, when considering extending more credit seems daft.

Harry.

gowgowuk

Hi, I've just canceled one of my credit card this week-end in order to improve my credit rating before applying for a new one (possibly Barclay's Platinum for stoozing).
How long does this information take to be transmitted to the credit agencies? In one of Martin's article I see this:
"Yet, even once you've cancelled a card, it doesn't mean the account is closed. The card company will leave it dormant but open for a while in case any payments you've made still need to come through. It's worth making a call a few months later to double check it's done and dusted."
Months? I was hoping for a quicker operation (I think Barclay's offer is only there until the end of September).
Thanks

Philippe

Moggles_2

gowgowuk wrote: »

I've just cancelled one of my credit cards this week-end in order to improve my credit rating before applying for a new one (possibly Barclay's Platinum for stoozing). How long does this information take to be transmitted to the credit agencies?

Lenders vary in this respect, as with everything else. You don't mention which card you closed down, but the whole process (from the initial phone call ) can sometimes span a couple of months, so allow plenty of time.

If you have an excess of available credit, it's advisable to check your credit reports to make sure the a/c is marked "settled" before you submit a credit card application.

Btw, once you have your credit reports, the CRAs seem happy to answer questions over the phone if you quote your reference number. So if, for instance, you wanted to check that particular items had since been updated, there's no need to order further copies of your reports

gowgowuk

Moggles wrote: »

Lenders vary in this respect, as with everything else. You don't mention which card you closed down, but the whole process (from the initial phone call ) can sometimes span a couple of months, so allow plenty of time.

Thanks, Moggles. It was an American Express Nectar card. I have to say I was hoping for something a bit quicker than that, but I'll check my credit reports in a few weeks.