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

Exile

First of all, great site! Extremely informative.

I left the UK 9 years ago after graduating and had already screwed up my credit by maxing out an overdraught and credit card and leaving the country without paying them. Yes, I was a bad boy, but I've turned good since then and I'm thinking about returning next year and would like to know where to start when it comes to getting credit info and cleaning it up.

I live overseas at the moment and have no connections in the UK- and have no address to speak of. Though I was registered on the electoral role at my last UK address back in 2000.

This, along with not possessing a credit card at the moment is making it difficult to apply for for my free report with Experian since they require those things to validate who I am.

Any suggestions on where to start?

I would like to get my current credit information so I can make an informed decision about whether it's safe to return- after all, I'd like to buy a home one day and to be honest..or dishonest I suppose, I'd rather just go somewhere else if it means I'm going to be fighting a very long battle to clear my name.

Thanks in advance

MisterD21

Hey.
I'd potentially say "Welcome back to the UK" but its pretty grim here lately and I'm sure you haven't missed much.

Anyway, I digress.

Nine times out of ten, (although don't quote me on this). Any debts not claimed/settled within a 7 year time frame from the last payment on any account is deemed to be written off.
However, this isn't set in stone as companies may still pursue you for the balance including charges, court costs, solicitors fees etc. So what you thought may have been a £1k balance for instance, will without doubt be at least three times that much by now.

Anyway. there are a few things you can do.
Go to the UK Credit Reference Agency Websites which the main ones are:
Experian - experian. co.uk
Equifax - equifax. co.uk
CallCredit - callcredit. co.uk

And apply for a copy of your credit file.
Two ways.

Expensive Way:
Sign up via their website, pay the £15 (ish) to view your report, pay an extra £6 (ish) to get your credit score = FULL report, then after 25 days (to be safe), cancel your online account.

Cheap Way:
BUT you need a UK mailing address or a friend that can hold your post for you until you get here or the address of where you'll be staying when you get here.

Go to the respective websites and find a customer services telephone number, give them a ring and ask them for a "Data Subject Request" or a copy of your credit file.

They will ask for a Postal Order for a nominal donation of somewhere between £2 ~ £10 for the privilege and will post a full report to the address stated above.

The "By Post" method is cheaper but slower, the online version is instant but costs quite a bit more.

By Post - 3 Credit Reference Agencies x £2 = £6
Online - 3 Credit Reference Agencies x £21 (ish) = £63

If you enjoy throwing money away, go for the online version.

However, Experian and Equifax usually offer a Free 30 Day trial then charge you thereafter.

Once you have your credit files, they will show who you owe money to and how much.
Then it's up to you to contact each company and set up a payment plan and start paying back the money.

I may have missed something out somewhere and I'm sure the other good people of this site will correct me.

Hope that helps.
Danny

never-in-doubt

Exile wrote: »

First of all, great site! Extremely informative.

I left the UK 9 years ago after graduating and had already screwed up my credit by maxing out an overdraught and credit card and leaving the country without paying them. Yes, I was a bad boy, but I've turned good since then and I'm thinking about returning next year and would like to know where to start when it comes to getting credit info and cleaning it up.

I live overseas at the moment and have no connections in the UK- and have no address to speak of. Though I was registered on the electoral role at my last UK address back in 2000.

This, along with not possessing a credit card at the moment is making it difficult to apply for for my free report with Experian since they require those things to validate who I am.

Any suggestions on where to start?

I would like to get my current credit information so I can make an informed decision about whether it's safe to return- after all, I'd like to buy a home one day and to be honest..or dishonest I suppose, I'd rather just go somewhere else if it means I'm going to be fighting a very long battle to clear my name.

Thanks in advance

If you left the UK in 2000 then all debts would be statute barred (pretty much) and no trace on the CRA's so you just come back to the UK as a new person, if you like.

You have a blank canvas.

When you move back you have to get added to the electoral roll - without this you'll have no chance of getting credit.

Do not mention your last UK address from 2000, it is irrelevant. To apply for credit most lenders ask for your current and last address for a 3 year period. As you've been out the country for 9 years then you give that as your previous address. The advice above (sorry) is fruitless as the last thing you need to do is see your credit files, they are none existant so pointless. Forget it.

By the way, to correct the above post debts become statute barred (under Limitations Act) after 6 years of no acknowledgement or payment (5 in scotland).

never-in-doubt

MisterD21 wrote: »

Nine times out of ten, (although don't quote me on this). Any debts not claimed/settled within a 7 year time frame from the last payment on any account is deemed to be written off.

^ 6 years in England - 5 Scotland and it is not written off, it becomes statute barred

MisterD21 wrote: »

However, this isn't set in stone as companies may still pursue you for the balance including charges, court costs, solicitors fees etc. So what you thought may have been a £1k balance for instance, will without doubt be at least three times that much by now.

^ After 9 years away no-one will pursue this. Period (plus it is illegal for the DCA to chase a Statute Barred debt).

MisterD21 wrote: »

Anyway. there are a few things you can do.
Go to the UK Credit Reference Agency Websites And apply for a copy of your credit file.

Pointless - he's been out the country for 9 years so there will be no trace of him!

MisterD21 wrote: »

Go to the respective websites and find a customer services telephone number, give them a ring and ask them for a "Data Subject Request" or a copy of your credit file.

A section 7 (DPA1998) - SAR request costs £10 - must be done in writing but you'd be wasting your time as they do not hold any data as he was out the country for 9 years (the CRA's only keep 6 years worth of data).

MisterD21 wrote: »

They will ask for a Postal Order for a nominal donation of somewhere between £2 ~ £10 for the privilege and will post a full report to the address stated above.

£2 for a Statutory Credit Report - £10 for a SAR (entirely different things). No need for either.

MisterD21 wrote: »

Once you have your credit files, they will show who you owe money to and how much.

If they did then i'd be suing the CRA's

MisterD21 wrote: »

Then it's up to you to contact each company and set up a payment plan and start paying back the money.

Not at all - the companies would be acting illegally for taking payment on a known Statute Barred debt.

MisterD21 wrote: »

I may have missed something out somewhere and I'm sure the other good people of this site will correct me.

Sorry Danny - stick to the day job mate

Exile

Great information all! Thanks a lot.:beer:

Is getting on the electoral register something that can be done quickly?

never-in-doubt

Exile wrote: »

Great information all! Thanks a lot.:beer:

Is getting on the electoral register something that can be done quickly?

Yep - see here: http://www.aboutmyvote.co.uk/

MSE thread - http://forums.moneysavingexpert.com/showthread.html?t=758777

misscutiepie1984

Not sure if anybody can help but worth a try.

My credit score is

callcredit : (523)

Equifax

experian : (425) had unfair default on has since been removed thanks to FOS but has never gone back up.

misscutiepie1984

Not sure if anybody can help but worth a try.

My credit score is

Callcredit : (523)

Equifax : (494)

Experian : (425) had unfair default on has since been removed thanks to FOS but has never gone back up.

I have a problem with my Experian report since the Default was removed none of my creditors seem to report to Experian so on the surface I seem to have no loans or credit cards so my score does not improve. I have applied for credit but it get declined because they search Experian so im catch 22, I need credit to improve my score but can't get it because I have no history.

Any ideas as to what I can do so somebody will report to Experian?

never-in-doubt

You cannot enforce a lender reports data - in some ways it is good cos it will not be included in any debt assessments but on the other hand means you don't have any credit. You could send an online message to the CRA asking them to chase the lender - new accounts can take a while to update, plus some only search/report data with certain CRA's - not necessarily both!

The secret is to apply to lenders that use equifax if that is where your history is - look for undergrounds thread - credit ref agencies, who searches who. That will help you.

Forget the scores the CRA's issue - they are useless and mean nothing - save your money.

never-in-doubt

Misscutie - thats the same post in 3 threads - enough already!

http://forums.moneysavingexpert.com/showthread.html?p=28244079#post28244079

http://forums.moneysavingexpert.com/showthread.html?p=28245819#post28245819

http://forums.moneysavingexpert.com/showthread.html?p=28240803#post28240803