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

Moggles_2

Protus wrote: »

I'm new to the country with no bank account and have only recently registered myself on the electoral roll, which I've been told will only be updated and reported to the CRAs after 1st December.

Yes, had you applied in August, your details would have appeared on 1 September. Unfortunately, the next update is not published until 1 December. (The delay is due to the borough-wide annual audits that are carried out at this time of year.)

On or shortly after 1 December 2009, I'd contact the electoral services department of your local council to ask when the credit reference agencies are next updated, as frequency varies between boroughs. Then check your electoral status is correctly recorded on credit files at your current address before you apply for credit facilities. For help, see page 1 of the *How to obtain credit reports* sticky.

Btw, once you have your paper copy, 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 credit reports

I'm presuming being on the electoral roll itself does not create a history.

That's right, but it is a fundamental requirement, so I'd make this your No. 1 priority.

DrScotsman

Hi guys, I have a question.

7th May 2008, card transaction brought me into negative. Brought back into positive on 7th June. Incurred some charges, which were taken on 22nd May, 30th June and 31st July (still completely positive after 7th of June)

On my credit reports this manifests as June being "3", with the May and July marked as up to date. Callcredit says this "3" means payments up to 3 months late, and Experian says it means "3 payments late". Basically my question is does anyone think this is a mistake, or is it completely normal (i.e. should I complain or not?)

Moggles_2

DrScotsman wrote: »

7th May 2008, card transaction brought me into negative. Brought back into positive on 7th June. Incurred some charges, which were taken on 22nd May, 30th June and 31st July (still completely positive after 7th of June) On my credit reports this manifests as June being "3", with the May and July marked as up to date. Callcredit says this "3" means payments up to 3 months late, and Experian says it means "3 payments late". Basically my question is does anyone think this is a mistake or is it completely normal (i.e. should I complain or not?)

Is this a credit card account or a debit card linked to your current account?

If I've understood your post correctly, it sounds as though the status codes on your credit files look something like this:
000300000
whereas I would have expected
00032100000
if your payments were in actual fact up to 3 months late

DrScotsman

Moggles wrote: »

Is this a credit card account or a debit card linked to your current account?

The latter

If I've understood your post correctly, it sounds as though the status codes on your credit files look something like this:
000300000
whereas I would have expected
00032100000
if your payments were in actual fact up to 3 months late

You have understood that correctly, it is 00300 with [strike]at least 2 out of the 3 credit agencies[/strike] all three agencies; found my saved Equifax. Glad I'm not the only one who found this unintuitive.

Moggles_2

DrScotsman wrote: »

The latter [current account]. You have understood that correctly, it is 00300 with all three agencies; found my saved Equifax. Glad I'm not the only one who found this unintuitive.

The status codes shown on current accounts have a different meaning from those associated with credit cards and unfortunately banks vary in their use of these codes and the data they report to the credit reference agencies.

I take it you have an authorised overdraft. Have you exceeded the overdraft limit? I would seek clarification from the CRAs. I've found Experian's staff helpful, provided that you quote the reference number on your credit report.

As you know, overdrafts are repayable on demand. Credit card debt, on the other hand, is not. Please be aware that if you apply for new credit, potential lenders will pay more attention to overdraft balances, because it's known that the same level of debt on credit cards only requires a 2% to 3% monthly minimum payment and cannot be called in.

DrScotsman

Moggles wrote: »

The status codes shown on current accounts have a different meaning from those associated with credit cards and unfortunately banks vary in their use of these codes and the data they report to the credit reference agencies.

Bah, not worth sending the letter to Halifax I've just drafted then?

Moggles wrote: »

I take it you have an authorised overdraft. Have you exceeded the overdraft limit? I would seek clarification from the CRAs. I've found Experian's staff helpful, provided that you quote the reference number on your credit report.

I had a £10 authorised overdraft and the transaction took me from positive to over the limit (about £-40), so in short it was unauthorised overdraft. I'll contact Experian first then.

As you know, overdrafts are repayable on demand. Credit card debt, on the other hand, is not. Please be aware that if you apply for new credit, potential lenders will pay more attention to overdraft balances, because it's known that the same level of debt on credit cards only requires a 2% to 3% monthly minimum payment and cannot be called in.

Well then hopefully my well managed student overdraft will cancel out this annoying 3

Thanks for all your advice

brid13th

izools wrote: »

Further to the ER registration, which is most important, you need to contact Orange and correct the address they hold on file for you - it's Orange's fault, not Experian's.

Once you have ER showing on your credit file and all the accounts at the correct address, you should be able to reapply with confidence as long as you haven't applied more than twice in the preceding six months

Many thanks for the help I've received from this forum

milliemonster

I'm wondering if anyone can help me. Both myself and my hubby have high unsecured CC debts which we are overpaying each month by around £1000 (the total o/s amount is around £38k now) we have a good combined income of circa £75k but despite nothing adverse one our credit reports we cannot get a 0% or LOB transfer deal at all, the only cards we ever get offered are ridiculous rates of 28%.

The interest rates on our current cards are from 6.5% - 34%.

Now I realise that the only reason we cannot get another card to transfer a balance is probably due to the amount of credit card debt we already have. So my question is, what level do we need to get this down to before it is worth applying again? I don't want to keep applying and getting refused and it damaging our credit rating even more. I have made sure that we are on the electoral roll (having said that when I tried the Barclaycard checker, it says they can't locate us and to check we are on the electoral roll - we are!) we have made sure we closed all unused accounts and settled accounts also.

Moggles_2

milliemonster wrote: »

I'm wondering if anyone can help me. Both myself and my hubby have high unsecured CC debts. We have a good combined income of circa £75k .... I have made sure that we are on the electoral roll. Having said that when I tried the Barclaycard checker, it says they can't locate us and to check we are on the electoral roll - we are.

Something's adrift then.

How long is it since you last applied for a credit card successfully? Have you moved house since then or has your post code changed in the interim?

When you last filled in an online cc application, can you recall whether your address popped up automatically on entering your house/flat number and post code or did you have to enter each line manually?

milliemonster

Moggles wrote: »

Something's adrift then.

How long is it since you last applied for a credit card successfully? Have you moved house since then or has your post code changed in the interim?

When you last filled in an online cc application, can you recall whether your address popped up automatically on entering your house/flat number and post code or did you have to enter each line manually?

Last time I successfully got a new CC was my Mint card which was about 2 years ago. I last applied for a new one a couple of months ago and got turned down, hubby the same. This is about the 4th time we have tried since we moved here. We last moved house in March 2008, our address has been updated on Experian and Equifax (not sure about Call credit) Normally our address always pops up when we start entering the address (its an old house and the address is high st'!, postcode hasn't changed but I haven't been able to get any new credit since I have been in this house. Initially I thought it was because we weren't on the electoral roll but we definitely are according to the council and to my report with experian and equifax.

But when I applied for a Halifax bank account a few months ago, it said they opened it online immediately, but once I had entered all my details and it went through the application process it said they had to write to me for verification of identity and address, they did so and wanted a copy of council tax etc.

I can't understand this as we went on the electoral roll last December and even had a letter from the council confirming we were on it. Our address is correct on Experian and Equifax.

Its so annoying as I am sick of not being able to get a transfer deal and paying high interest when I know after all our bills have been paid we have around £2000 disposable income of which £800 is min payments on cards so easily have enough to overpay (which we do) we have reduced our unsecured debt from £65k early last year (and a £187k mortgage) to £38k now and our mortgage is now £150k yet we could easily get credit back then and can't get anything now plus both our salaries have increased in that time!!

We do live in our overdrafts though, but that is only because I am using the overdrafts for extra cc payments (as the interest is less on the overdrafts!) I could clear the overdrafts immediately when I get paid if I had to if this would make a difference, I can't think of anything else I can do.

Egg have just written to say they are putting their interest rate up from 17.9% to 21.9% unless I close the account, which I have done, again I don't know why as I have not missed a payment ever to them, always pay more than min, no defaults CCJ's late payments in last 12 months or anything.