The Sub Prime Credit Thread - Part IV

slykal

slykal wrote: »

Hello everyone, new to the forum

I have a Vanquis Card; got one last year 03/2009 with a £250 credit limit, after six months my limit was increased to £750 and a few weeks ago it was increased to £1500 (got a gold card)

I have an HSBC credit card (£750 limit from 06//2007), an Outfit store card (£300 limit), an O2 contract and Creditbuilder with Cashplus card.

I checked my credit report recently (on both Experian and Equifax) and on my HSBC Current account (overdraft) I have three 1's (July, September and November 2009) I was having financial difficulties at the time and was overdrawn; Do these count as defaults? How much of an impact does it have on my credit?

I noticed a huge difference between the number of searches on Experian and Equifax (the former having more searches). Does this mean I have a better chance of getting credit with a company that uses Equifax?

I want to apply for a credit limit increase with HSBC; will they carry out a credit search? Is this even advisable given my recent history (overdrawn Current account)?


Thank you.

Posted this 23 pages ago and no one replied. Hoping someone here will answer my questions.

mattlfc79

slykal wrote: »

Posted this 23 pages ago and no one replied. Hoping someone here will answer my questions.

Hello,

Not sure on whether a credit check is performed when you ask for an increased limit.

With regards to the 1's on your credit file they are not defaults they are missed payments. A 1 means that you were one month late with your payment. 3 1's means in 3 separate months you were 1 month late with payment. If they were 2,3,4,5 or 6 that would simply indicate how late you were with payment.

A default is indicated with a D (i know this very well as I have 6 of them!!!). The default date is also included on your file.

I think (correct me if I am wrong) that the missed payments shouldnt hinder you too much if you have a good few months of green zero's following.

If I am wrong I would imagine someone with more knowledge will help out.

Good luck and welcome to the forum!

ElkyElky

Generally, one missed payment is fine, however multiple will have a negative impact on your file.

If you missed payments on your HSBC card, then I highly doubt they'll honour a request to increase the limit.

never-in-doubt

HSBC will have an already approved limit based on your behaviour score, simply go onto online banking select the credit card and from the options down the left select increase limit....

The 3 late payments you have from HSBC will hinder you for at least 3 years - yes. You basically went overdrawn or whatever without a formal agreement in place and so their report is accurate and will reflect your risk, unfortunately.

The best thing to do is to go into branch and ask for an account review - they will then be able to tel lyou what you can have, prior to any searches taking place. This is unique to HSBC by the way - if they do make a search (say you're not pre-authorised for anything) which will be a CallCredit one, initially.

fairmorn308

Been accepted for the Citi Bank US Dollar Current Account

seeya23

fairmorn308 wrote: »

Been accepted for the Citi Bank US Dollar Current Account

well done is that account for your wages

fairmorn308

seeya23 wrote: »

well done is that account for your wages

Yes mate

Just need to find a accountant so can setup a limited company etc now aswell

f10101

never-in-doubt wrote: »

HSBC will have an already approved limit based on your behaviour score, simply go onto online banking select the credit card and from the options down the left select increase limit....

The 3 late payments you have from HSBC will hinder you for at least 3 years - yes. You basically went overdrawn or whatever without a formal agreement in place and so their report is accurate and will reflect your risk, unfortunately.

The best thing to do is to go into branch and ask for an account review - they will then be able to tel lyou what you can have, prior to any searches taking place. This is unique to HSBC by the way - if they do make a search (say you're not pre-authorised for anything) which will be a CallCredit one, initially.

Ive never had this option, its always been a case of phoning the number listed and speaking to an advisor

This happened the last three time i successfully increased my limit but more recently they told me my internal score wasnt high enough and didnt make the search (bounced DD a few months ago)

Any idea how long it takes to re establish a decent internal score?

Wages go into 1 account (£2k every 4 weeks) and around £1k gets transfered by SO to another account where all my bills come out, all by DD and an SO to my savings account. The second account also pays the rent for the flat so an additional £750 comes in from my housemates every month

Im not sure if this 2 account strategy helps or hinders me

Thanks

never-in-doubt

fairmorn308 wrote: »

Yes mate

Just need to find a accountant so can setup a limited company etc now aswell

Why do you need an accountant? You do it yourself on places like this, for example: http://www.thecompanywarehouse.co.uk/

Or read here: Set up and register a limited company (private or public ... or HM Revenue & Customs: Set up as a limited company

I've been director of several limited companies, works well as you pay yourself dividends (tax free) - so you do need a good accountant to save you money, but set up the company yourself mate - its easy! You do need a company secretary as well though, so someone that doesn't mind having their name associated with you....

CHANGEyourMP

never-in-doubt wrote: »

You do need a company secretary as well though, so someone that doesn't mind having their name associated with you....

Nearly right NIDDY!:doh: You no longer need someone else to act as company secretary, you can be both director and secretary of a limited company!