Please Help! - Do Credit Reports show all possible info???

kkk79_2

Dear all,
My partner has just come clean about his past financial activities before I met him. In brief, the details are as follows. He had two credit cards in 2004 which he maxed out and had trouble paying back. After getting numerous letters, these finally made their way to debt collectors. Because he was not working at the time and had not much of an income, he closed his bank account and was literally taking each day as it comes. So for over a period of about 2 years, he had no bank account, no credit cards or any other form of credit. We know for sure those two credit card debts would have made their way to the CRAs. He got a job in November 2006 and then the following year got a new bank account and has been following up his credit reports ever since. However, he still has not paid those two outstanding debts but they are no where to be seen on his credit reports. I have looked at all his previous reports since he started keeping an eye on things. In the very first report from both agencies, there were entries for these two defaulted credit cards but then after the second or third report, these entries just seemed to have vanished. He knows he hasn’t paid them yet but his credit score has been building up slowly as he has been very vigilant with his accounts. He pays everything on time, has an overdraft with his bank which he uses but not too much and coz his salary gets paid into this account, he literally covers any dent on his overdraft. He also has a mobile phone on contract which he pays by direct debit and has never missed a payment. He has been with his bank and had his mobile phone for over 2 years now and his reports from both Experian and Equifax show he has never missed a payment. His credit score with Experian is 911 (in the good region) and even though it is not excellent, considering his score at the end of last year was 582, I would say he has done a pretty good job. His score in the Equifax report however is 399 which is in the fair region (the “Good” region with Equifax is from 400). All in all, I would say it is not looking too bad.
My question however is why those two defaulted credit card debts no longer appear on his credit report coz as far as I know, these things stay on your report for 6 years right? And how is it possible he could have built his credit score as his as that with two defaults. This makes me wonder whether there are things on your report you don’t see and lenders see? I say this coz despite his high score and spankingly clean report, he recently applied for a vanquish card and was turned down. Any help on this will be very helpful. We were planning to open a joint account together but I do not want to ago ahead till I’m certain this won’t affect me adversely. Thanks.

Moggles_2

We know for sure those two credit card debts would have made their way to
the CRAs.

Does he have a credit report from 2004 or 2005 showing this?

Could he be mistaken about the year? If, in actual fact, this happened in 2003, the records would have dropped off his file by now.

Moggles_2

And how is it possible he could have built his credit score as [high] as that with two defaults?

Credit scores are at best a very rough guide.

From feedback here, it's easy to be lulled into a false sense of security by these numbers. Then it comes as a shock, when your application is turned down. (Equally, some forum users are put off applying at all, because of low scores.)

Credit reference agencies are there to provide your credit history. The actual methodology (and the process of scoring itself) is done by their clients, the lenders. None of us - including the CRAs - knows what criteria are used by individual companies. Lenders do not disclose this information.

Credit reports, when ordered directly from Experian and Equifax, are valuable. After all, this is the information lenders search when you apply for credit. The accompanying notes are a good read too. Additional services like credit scores are a nice little earner for the CRAs, but of little practical value to cc applicants and certainly not worth paying extra for. I wouldn't let these numbers distract you from tackling the things that really matter

Moggles_2

This makes me wonder whether there are things on your report you don't see and lenders see. I say this coz despite his high score and spankingly clean report, he recently applied for a Vanquis card and was turned down.

There are any number of reasons why a given lender may refuse to extend credit, so I'd keep an open mind.

For tips to improve his 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

http://www.moneysavingexpert.com/banking/credit-rating-credit-score#improve

kkk79_2

Hi Moggles. Thanks for your responses. In relation to your first question, no he doesn't have a report from 2004 or 2005 but as mentioned, when he started to get things back on track and opened a bank account in 2007, he applied for his report from both agencies. They did show these bad debts but they kind of disappeared when he requested for his reports the second time from both agencies. All the reports have been ordered from the two main agencies for which he is a member (pays a monthly fee and sees his report 24/7/365).
As you mentioned, the scores may not be of practical value for applicants as each lender has a different way to calculate scores but not sure how or why the debts have disappeared particularly as everyone I ask and even in a couple of threads have mentioned these things stay on your file for 6 years. I have double checked the dates and it was certainly in 2004 when he got issued those cards / defaulted and not earlier.

Moggles_2

We were planning to open a joint account together, but I do not want to go ahead till I'm certain this won't affect me adversely.

Well, nobody would blame you.

Your current account is an asset, particularly if you've built a good history over a number of years.

What advantage(s) would a joint account have? In the circumstances, you'd be wise to stay as you are, IMO.

Moggles_2

Not sure how or why the debts have disappeared, particularly as everyone I ask and even in a couple of threads have mentioned these things stay on your file for 6 years.

Yes, that certainly wants some explaining

One thing's certain: you can rest assured there's no hidden data seen by lenders that is not made available to us. On the contrary, they see less than we do

noah271007

Moggles wrote: »

Yes, that certainly wants some explaining

One thing's certain: you can rest assured there's no hidden data seen by lenders that is not made available to us. On the contrary, they see less than we do

I would not agree with you there Moggles.

Sometimes defaults/adverse data can disappear because of some incorrect address or postcode created from addresses links section but if it has not been removed by the company concerned, then it is possible the lenders will see the hidden data....because of your name and dob.... it is all interlinked....
Just call and ask the relevant credit reference agency whether they have account number XXXXXX... they will almost certainly will find it, but because of the incorrect addresses, it can disappear itself on the credit file...there are hundred of millions of data on their systems bear that in mind.

The only way to know for sure is to apply for credit and see what happens.

never-in-doubt

noah271007 wrote: »

I would not agree with you there Moggles.

Sometimes defaults/adverse data can disappear because of some incorrect address or postcode created from addresses links section but if it has not been removed by the company concerned, then it is possible the lenders will see the hidden data....because of your name and dob.... it is all interlinked....
Just call and ask the relevant credit reference agency whether they have account number XXXXXX... they will almost certainly will find it, but because of the incorrect addresses, it can disappear itself on the credit file...there are hundred of millions of data on their systems bear that in mind.

The only way to know for sure is to apply for credit and see what happens.

I agree, well said Noah. Also there is N Hunter and Synectics Solutions to consider, along with CIFAS.......

Thing to remember is that certain data is hidden from us, for example certain fraud data can be hidden from us if say it's stored with N Hunter for example......

Andy_Ches

never-in-doubt wrote: »

I agree, well said Noah. Also there is N Hunter and Synectics Solutions to consider, along with CIFAS.......

Thing to remember is that certain data is hidden from us, for example certain fraud data can be hidden from us if say it's stored with N Hunter for example......

Agree with NID and Noah, if you have also an address which could be formatted in different ways it may not be retrieved.

Address lins and formatting...lets not go there! :eek:

never-in-doubt

Andy_Ches wrote: »

Agree with NID and Noah, if you have also an address which could be formatted in different ways it may not be retrieved.

Address lins and formatting...lets not go there! :eek:

Hi matey -

This answers it: http://forums.moneysavingexpert.com/showthread.html?p=22422035#post22422035

Its something i'm explaining to someone else and they are struggling to grasp how it all works.....