Credit Reference and scoring discussion area

kirstyreanne

Hi,

I heard through the grapevine that they were going to put the debt through to the person rather than the address. Does any one know if this has come into place yet or if it is due to happen?

My mother has a very bad credit rating as she was a few thousand in debt and couldn't meet the repayments. It is now a few years on and she still hasn't tried to sort out her finances (the new top from river island is still more important!). As I still live at home, this obviously goes against me in a big way where credit is concerned.

I have one credit card at the moment, but I would really like to be able to transfer a balance onto a 0% credit card, but I am struggling to get one.

Also, I STUPIDLY put something onto my credit card for my mother, for which she was taking the payments into the bank for me to pay it off. I've since found out that the payments she's taken in have all been late (one was even 3 weeks late!) and it has resulted in me having 3 x £25 charges added to my account. Other than this I rarely use my credit card and payments are always made on time and way above the minimum payment. Is there anyway that I can get this taken from my credit rating?

Please help!

Milky_Mocha

Kirstyreanne

You and mother should exchange roles! That's mighty irresponsible of her. But then she probably has no clue about the consequences of making late payments. At the end of the day you are responsible for your account. As the due date draws near you should remind her and if by latest the day before she still has not paid then you take the initiative and march down to the bank yourself.

Anyway, this is the problem the new rules are seeking to address. That's according to the message alerts I was receiving prior to Nov 1 each time I logged into Creditexpert - that credit history of other people should not affect yours no matter where they live. Those late payments will still reflect on your record, though.

garyclay

From my experience of the CR agencies I have found:

DO NOT add a notice of correction to your file unless absolutely necessary. Most financial agencies use a computer programme to assess your credit worthiness and as soon as a NOC pops up it throws the application out. At best it will pass it on to a human to evaluate, normally it will simply decline you (why would a credit worthy applicant need a NOC anyay!)

Find out which CRA gives you the most favourable profile (they can vary quite wildly depending on which CRAs your creditors deal with). Then find a lender which uses this agency.

Mobile phone companies are terrible for giving accurate payment information. Ensure they have yours correct!

Querey EVERY late payment documented on your file. Even when they are justified! You may be surprised to find some lazy lenders will take your word for it that they made a mistake or that the bank didn't process the payment or that the internet banking service screwed it up etc etc.

Most banks have a differnet profile limit for each type of lending.

The least strict is for opening a current acount (with debit card)

The next is applications for a credit card.

Next strictist is a personal loan

Finaly the holy grail is the mortgage.

The simple reason being that the higher up the tree the less the interest so the more reliable the lender is required to be.

Finaly if you are struggling to find a mortgage lender don't go with te first company you find!!!

There are companies out there that will use human risk assesment rather than computer. GMAC-RFC is a good example of this. Offering reasonably competitive products that are close to high street offerings (although tie ins tend to be longer). A good independent mortgage advisor is great when approaching problem lending. Don't be embarrassed they have heard it all before, be truthfull and you will save thousands!!

Thats my take on the whole bad debts/ CRA thread. Having been there, done it and come out the other side. I ended up having t sell my home and start again as my debts were so bad. So take heed!! Reading these threads you see so many people who "took out the card to improve their credit rating but it's now at it's limit!!!" Do you need the credit, and I mean really really need it?? Our parents simply went without or saved up. Maybe its time to give it a try!!

:P

UK-Taltos

I have a question / problem regarding scoring and agencys.
Some backgroung info if it helps.
I live in a council flat, my wife and I both work, we owe nobody any money, we have no debt, we have a bank account but no credit cards, we save up for things and we stay in credit each month. So we decide to buy a new car (with 4 kids we need an MPV), and get a loan to buy a car while I sell her car (following me so far). I apply for a "SMILE" loan 6.0% looked ok.... Bingo we got acceped great I thought, little did I realise that they want to charge us 14.8% now. So I start digging around, I asked if they were joking, they dont do joke's "it's all automated sir, it's your credit scoring". ok I contact experian and get a report. well there is not a lot on it, yes we are who we say we are, yes we can vote and no we are not in debt to anyone, well that all correct. We now have 2 entries on the report, a search by co-op bank and my request for a copy of the report.
My question (to finally get to the point) is, if I tell smile to poke their 14.8% and go and apply to another loan company or apply for a credit card are we going to get black marked by having more searches made to experian. will the fact that we said NO to 14.8% count against us some how. God forbid you are careful with your money and that you use a bank as a bank, how do they make any proft from people like me, oh yes 14.8% thats how!
Regards
Malcolm

deemy2004

The problem you have is a lack of credit history.

So automatically your given a low credit score, because theres nowt much to base it on. Lots of credit checks does have the effect of eroding your credit score, but another one won't make much difference.

I now its hindsight talking now, but it would have been much better you havign a credit card, and not using it then having no credit at all.

Your going to have to build up a credit history so you may have to bite the bullet and take a loan at the higher rates and / or a credit card as well, even if you don't use it much. Afterall would you employ someone with no employment history ?

UK-Taltos

Hmmmm chicken & egg I think.
So take their "money grabbing" 14.8% loan, apply for credit cards with my bank, and in 6 to 9 months get a cheaper loan to pay off this daylight robbery. Is that about right?
Hinesight is a great thing, just wish I had done my homework a bit before jumping in and applying for it in the first place.
The loan BTW was for the huge sum of £3,000 I have some cash saved towards it already, I wanted it over 36 months. They now want intrest of £686 like I said daylight robbery.
Who said cash was best?
Regards
Malcolm aka Mr No Credit History.

garyclay

Hi Malcolm,

You could try one or two more CC companies before it becam detremental. The big problem is that the people in the call centre that process your application have no knowledge of how the scoring system they are using works.

This means they are unlikely to know if no previous lending information is likely to be detremental for their particular scoring system.

You could always apply for a Sainsbury's CC at 0% for 12 months. When the 12 months is up you'd have some credit history and then transfer to the cheapest loan you can find (there are some cracking sub 6% deals).

Thats if Sainsburys accept you.

Failing that why not approach your bank for a loan. As a trustworthy customer they have your account history on which to score you they can see your income and expenditure and are therefore more likely to lend to you at there lowest APR.

Who do you bank with. Only asking as I see LloydsTSB are writing to my mother offering a sub 6% loan and she's retired on a low income!!!!!!!!!!

Good luck!

UK-Taltos

Well an update
My bank well "natwest" wont be my bank for much longer after the whole exercise brought home just how valued a customer can be!
Once I have sorted out the loan / credit card I will be looking for nice new bank, with customer service not comedians.
Any advise on transfering to a new bank welcomed (probably subject of another forum).
The very kind people of "SMILE" and their 6% opps we ment 14.8% loan just got my back up.
I was just about to tell the wife to buy a roofrack and make do till we had saved up the total, when caution to the wind I went applyed to "Northen Rock" 5.6% then became 8.4% meaning I just saved 6.4% great.
I also liked the idea of the 0% credit card so have gone down that route as well, I am just waiting to see if they say yes and how much the credit limit will be.
The moral is do your homework, dont take the first offer, ask advise and if at first you dont succeed try try and try again.
I am just astonished how lenders can vary the way they credit score people and how much their advertised "typical rates" change.
How many people get loans at their typical rates?
Do people get loans at less than the advertised typical rates?

Malcolm

DaveyP_3

Hey Guys

Can anyone tell me how quickly a credit application appears on your credit file? I want to shop around for a loan, but don't want too many quotes to prevent me getting the best loan for me.

Many Thanks

Dave

WhizzKid

I recently applied to Freemans to buy somethig, and was going to use some e-vouchers. I was stunned to find my rejection declined on the basis of bad credit.
Experian are offering a free trial of their services, so in the last few days I have used this to take a look at my credit file with them. There is nothing untoward on there at all, two small loans for buy now pay later items that I could clear tomorrow if I wished. However my score is only 659 out of 1000.
Why?
I cannot fathom this. I pay my full credit card balances (2) off each month. I have never failed a payment for anything. I have a comfortable mortgage for my salary and am permanentyl employed.
Help!
What on earth can I do to rectifiy this?
Any help appreciated.
JKB