Really need some advice/help - credit scoring??

sillyme

I'm so gutted. I need some advie from soneone who understands credit scoring/credit records.

I was bad with money a few years ago - say 3 years ago and further back in the past:

• too much debt, (£35k at worst )
• 4 credit cards, 1 overdraft and 1 loan
• several missed payments with credit cards- which were all paid back but late after talking with credit card agencies and explaining I needed payment breaks of a month or two to get sorted
• I had my Egg credit card cancelled but I think this was due to their take over and a mass 'closing' of cards belonging to less than totally satisfactory account holders.
• I had a bank account with First Direct which was closedandturned into a single debt account I had to pay off and would then be closed

I had a lightbulb moment and since then have managed:

• Debt reduced to £11k
• No late or missed payments at all in 36 months
• I have 2 credit cards - one 0% I am soley using to pay off the balance, one as an emergency card - and 1 loan
• I always pay more than the minumum payment each month
• I guard my credit record FIERCLY
• My credit score (with CreditExpert) is 898
• ALL my accounts on my credit report on Credit Expert are green - settled or satisfactory - showing everything good, up to date, happy etc.

I've just applied for a mortgage with a deposit of 10% saved up and been rejected. Twice.

Both banks have said that they are baffled but they believe there must be something further back than they can see on my credit record.

I KNOW I was a nightmare. I KNOW I screwed around with my money. But I've been SO good for almost 3 years now and my credit score is great and I've tried SO hard.

When do I get a clean slate?
How long does it take to right myself?

blueberrypie

Defaults and missed payments usually stay on your credit record for six years, so anyone doing a credit check on you will still be able to see all the problems you've had. Lenders are much more choosy now, and so with the problems on your record, your outstanding debt of £11k, and the fact that your deposit is only 10% (which is pretty much the minimum these days), you will find it more difficult to get a mortgage.

Extra credit-checks showing up on your credit records can have a negative effect on your chances of getting credit of any kind, so it's not a good idea to trot around the high-street banks asking for a mortgage. Instead, speak to a mortgage advisor who deals with the whole market - he/she will be able to tell you if you have any chance at all of getting a mortgage right now, and if so, which lenders are most likely to consider you.

Well done for working your way out of your debts, by the way.

michael1983l

If you find yourself a free financial advisor and send them your credit file printed out they will advise you of companies most likely to take you up as a client. You should have 3 searches before it goes bad for you and you have already used two so I would choose the next one very carefully.

sillyme

Thanks both

Part of the problem is that I can't see anything nasty on my Credit Expert report . For one credit card it says 'number of score 1-3 in last 36 months = 8, number of scores 3+ in lsat 36 months = 8' (I was such a nob with my money...kick myself)

This is the only thing visible on my Credit Expert report that couldbe dodgy but I can't click into it to seee detail or dates....

TMSL

I also think your signature tag could be causing you a problem, potentially.???

happybroker

8 status 1-3 and 8 3+ would be sufficient for the bank to decline at 90% as they're not that keen on lending at that level anyway (hence the price of those mortgages!).

you could try contacting the credit card company concerned and asking for clarification of the information they have registered with the agency. I'm not sure that this will get you much further down the line unfortunately, time is what is required I'm afraid. Time for the market to ease, your deposit to increase and for the past to become more distant.

Sorry, I would love to be more positive.

Senior_Paper_Monitor

18 months ago that would probably have been 'light to medium adverse' and a choice of solutions, these days you are probably down to one possible adverse lender who will look at the current record and there is no way even they will touch a 90% solution.

You have obviously worked hard to improve the situation - but you need to plan on keeping up the progress for another couple of years at least unless the overall policy situation changes.

'Sqeaky clean' is a preriquisite for any 90% application - to thee xtent that if you are not on the voters role at your current, or even previous in some cases, address you will be rejected.

The two banks who apparently smashed DIPs through (as they have nothing to lose in doing so - unlike a whole of market adviser they lose equally if you don't qualify or apply for that particular product) have done you no favours.

The only adverse lender(s) are horribly expensive and have equally horrible tie-ins/penalties.

Sorry to be 'doom and gloom' but that is the way it is at the moment.

SPOTTEDCUP

im no expert but maybe it could be the 11k debt holding you back think banks work on about 3% of the debt for affordability so that would be £330 before anything else