Credit Ratings

Emma_Salmon

Hi,

Like many during my Uni days I got a credit card/overdraft/loans and ran up a lot of debt, I paid all this off in 2007 and have spent the last 2yrs trying to improve my rating. I have been very strict with myself over the last 6 months in a effort to see how much it does affect my rating. I have spent very little on my credit cards (Capital One high interest card)and paid them off every month in full. Taken on a pre-payment credit card to act as a mini-loan to improve my rating. And got a Next account to show I can obtain credit and pay this off well within the time limit.

However, I checked my rating 6 months ago and again today and it has improved by ONLY 20 points! At this rate it will be years before my credit rating is anything like good (currently in the Poor range).

A bit of history - I am registered on the electoral register, I have a mortgage and lived in my place for 3yrs. I am showing a number of accounts on my credit score which are settled and closed but it does say they stay on the report for 6yrs (I thought this was only defaults, which I have 1 settled).

So a few questions for you wise guys:

1) Does any one have any experiance with improving their rating, what sort of timescale does it take to improve? Am I being a little impatient?

2) How do I get the closed accounts taken off the report? I have called the companies involved a number of times and they assure me the accounts are definatly closed.

Thanks in advance,
Emma

love_the_messenger

How did you manage to get a mortgage?

lisyloo

1) You aren't being impatient, but there is a big credit crunch going on and a lot of people are finding their rating going DOWN. You should see you improvement as a big success relative to the current enviroment.

2) Closed accounts get taken off 6 years after closure. Sorry but the operative word in credit history is HISTORY. Lenders want to see your past even if you want to cover it up. You won't be able to get these removed.

thriftymomma

You can't get accounts taken off your report. The data remains there for 6 years, default or not. You can improve your credit score by taking things out like contract mobile phones, credit cards and well run, paid on time accounts. There is a awhole thread dedicated to it on here. Have a scooch about and you will become far more in the know. Good luck. DON'T PANIC. There is always hope!

thriftymomma

Oh and you are looking at working it for a good six months to a year to see some improvement. Hope that helps.

Emma_Salmon

Thanks for the replies, just for clarification:

Mortgage was got with my ex whose rating was excellent and then re-mortgaged with my dad (after we split) who is also excellent. My defaults were explained to the mortgage company and were very low (£160 or so) and me being in full time employment with a good salary helped.

Thanks for the info about the accounts, I don't want to hide my history as such but every thread says get old accounts closed and I am not sure how a lender would see these as closed on my report was my query.

I suppose now is such a topsey turvey time that things are never going to show a true example until the economy straightens itself out. Roll on another 6 months and we'll see whats changed!

lisyloo

but every thread says get old accounts closed and I am not sure how a lender would see these as closed on my report was my query.

There is a field called "settled date" (or something similar).
If this is filled in it means the account is closed.
The lender can see this and see that the account is closed.
It will not be counted as currently available credit if the account is closed, but if it's open the lender will count the credit available to you, hence open accounts can stop you getting more credit as the lender may think you have enough already.

Cards you are not using also are a theft/identity fraud risk so that's another reasons for closing them.

thriftymomma

Don't worry about the settled accounts, as long as you made all your payments with them on time, it's something that can be looked on favourably by lenders as they see you can manage credit effectively.

Emma_Salmon

Brill, thanks. Shall check that the settled dates are listed on them all and are correct. Seems I am doing all the right things (thanks for the reassurance) and will just ride this out and keep being good with money! My dad will be so proud!