Low Credit Score! Help...

SamUK

Want to get a morgage, but my score is low...525..

Will i get a morgage? if so what rate can i expect?

How can i better my score?

izools

SamUK - the credit score you got from Experian or whoever is meaningless.

it's the actual report data that is important.

Have you missed any payments? Have you ever defaulted on an agreement? Are you on the electoral role?

Tell us a bit about your credit report and we'll see what's up.

The number is just Experian's interpretation of your credit report.

All creditors use a different score sheet and will come up with a different number based on the same credit file - so the number from Experian is useless

SamUK

Thanks..feel better now...:cool:

My report is good..i ahve 26 accounts most are settled some are on £0 - I was thinking of closing thse accounts as i never use them anyway..Only one card has near £4k but thats intrest free...this should be paid off in full in the next 2 months. so in 3 months i should owe nothing...apart from monthly DD's for a sofa that i am still paying for..

I have missied afew payment but nothing in the last year...speaking to Experian they said it should not couse much of an issue as they were very small amounts...they said i have a good report...apart from the default!

I am on the electrol..

I have one default not showing as settled (currently in despute as this was paid off 5 months ago) this was for near £900

I did try to apply for a CC last month but was rejected, guessing its because of the defualt still showing as money owing...

izools

Ah Ok then sounds like the only things you need to get sorted are the Default, and also keep off the apply button because your score drops every time you make an application for credit - more than three searches in a six month is frowned upon (although this can vary from creditor to creditor).

How old is the Default?

Once these are sorted you should be alright for a mortgage, especially if you have a good reputation with your bank and apply with them

SamUK

I have managed to finally get hold of barclays...the default shoudl show settled on teh credit file in the next week of so..they are looking into it...thank god for that!

Defaulted on 06/09/08 - so a year now...

So you think morgage should be ok..even with the default...but will be showing as settled at that time...?

These credit cards have got me into nothing but trouble...would i be ok to close the accounts down once they are on £0? or would this effect my credit..account closures?

izools

I don't know, that is a very recent default.

I would expect you will be firmly in the "Sub Prime" category until the default is at least three years old unfortunately

Of course, it varies from lender to lender and also depends on the rest of your credit file and the rest of your application data, but generally a recent default means no high street credit. Sorry!

SamUK

What is the high street rate? I assume i would get little higer then that?

Also they only way i can find out is by applying..and if i get rejested..it will be another dent in the file...No?

izools

To be honest, I wouldn't bother hurting your credit file with applications for mainstream credit until that default is both satisfied and over three years old.

I'm yet to come across anyone who has been able to get approved for mainstream credit, be it a credit card, overdraft, loan, or mortgage, with such a recent default.

During this time, just make sure to leave a couple of credit facilities open, use them from time to time, but don't leave too many open with high balances or high limits as this may be interpreted as over commitment by a potential creditor.

You'll be alright, just need to hold off for a bit IMHO