Credit score agencies

siandtink

I wonder whether anyone else has had a similar experience -

Recently, I applied for a new credit card - being a card tart and wanting to shift an existing balance. I had never defaulted a payment and, if fact, had never had any problems getting credit. However, I was turned down.

The reason for it, as I found out after getting an Equifax report, was that there were quite a few old credit card accounts open, which meant that there was NO amount of credit available to me.

My problem with the whole system is as follows:
1. Credit card companie DO NOT seem to send regular updates to credit score agencies - there were entries for some months missing in my report.

2. Not all credit card companies inform credit score agencies that the accounts are closed - the worst offender in my case is MBNA to whom I had written but they simply ignored my request for account closure.

3. Credit score agencies hold information 3 months in arrears which leaves credit applicants frustrated if they wish to apply for credit, which they believe should be available to them.:mad:

Anyway, that is my rant. Anyone with a similar experience?

never-in-doubt

siandtink wrote: »

I wonder whether anyone else has had a similar experience -

Recently, I applied for a new credit card - being a card tart and wanting to shift an existing balance. I had never defaulted a payment and, if fact, had never had any problems getting credit. However, I was turned down.

All credit is risk based. Nothing new. Some long time serious tarts are being refused nowadays

siandtink wrote: »

The reason for it, as I found out after getting an Equifax report, was that there were quite a few old credit card accounts open, which meant that there was NO amount of credit available to me.

There are 3 CRA's - look at them all, not just Equifax. You need to write to the lenders of the old accounts and ask them to remove/update the data to show the account as being closed with the Credit Reference Agencies (CRA's - this is the correct term, not 'credit score agencies' - moreso as these CRA's do not issue scores, the lender does!

siandtink wrote: »

1. Credit card companie DO NOT seem to send regular updates to credit score agencies - there were entries for some months missing in my report.

They do it monthly in most cases except when you close an account it can take longer, but you simply write to the lender requesting update of status to closed quoting it is having a detrimental affect on your ability to obtain credit - this is a breach of DPA 1998.

siandtink wrote: »

2. Not all credit card companies inform credit score agencies that the accounts are closed - the worst offender in my case is MBNA to whom I had written but they simply ignored my request for account closure.

You can chase it yourself, worse case query it with the CRA who then must go to the lender for clarification and this way it should be done faster.

siandtink wrote: »

3. Credit score agencies hold information 3 months in arrears which leaves credit applicants frustrated if they wish to apply for credit, which they believe should be available to them.:mad:

Who told you this? It is realtime data (primarily).....

Have a read here: Credit Reference Agencies

LBG_worker

I am interested in this realtime data thing - how do you know? do you sit there and press refresh on an online experian file? With credit cards I know of three banks that send experian information on the date that the statement is produced (which contains the previous months transactions) This data is an account snapshot at the time and does not get updated until the next months statement is produced regardless of what time in the month a payment is made - which banks constantly send realtime data about accounts?

never-in-doubt

LBG_worker wrote: »

I am interested in this realtime data thing - how do you know? do you sit there and press refresh on an online experian file? With credit cards I know of three banks that send experian information on the date that the statement is produced (which contains the previous months transactions) This data is an account snapshot at the time and does not get updated until the next months statement is produced regardless of what time in the month a payment is made - which banks constantly send realtime data about accounts?

Sorry mate you're mis-interpreting my point. Realtime in that if you apply for a credit product, the search will be there the same day (if you apply through office hours) or the next working day if outside. So if you close an account it should show as closed the next monthly update - not quarterly one.

The CAIS feeds are sent monthly usually at the lenders batch processing date..... But I am speaking about the actual processes being realtime, so if I add a NOC it will be instant, not a month or 3 later!

LBG_worker

ahhh with you now - Its just so many people seem to be having problems with their credit files not being up to date. They make money from banks and selling peoples data surely they can pay more staff to update files!

never-in-doubt

LBG_worker wrote: »

ahhh with you now - Its just so many people seem to be having problems with their credit files not being up to date. They make money from banks and selling peoples data surely they can pay more staff to update files!

Yes mate, I agree.... its a 3 stage process

1. Initial check to establish credit
2. Monthly feed update
3. Regular maintenance feed (usually quarterly) i,e to update closed accounts etc - so if the bank just done a run today, you'd wait 3 months but if you closed account today and their run was next week, you may get into that run so it'd be faster....

Option 3 is the one matey boy above is questioning but i'm saying he can do it himself by getting proof of closure from the bank and then request the CRA to update as closed.