Credit file advice please...

EstellaK

I was in a protected scottish trust deed until recently so have just started going through my credit files to see how bad they are !
A lot of the debts that were in my trust deed have now dropped off but there are 2 left:
one which will drop off in 2007 and one which will drop off in 2008. Both are showing as satified.

My question is...
If I add a notice of correction to both of these explaining that I split up with my partner and this caused the debt problems- do you think I will be able to start rebuilding my credit. I do not want to get into debt again but I would like to upgrade my bank account (i only have a cashcard at the moment) and I would like to get a mortgage as I am paying a fortune in rent at the moment.

Any advice would be appreciated

thanks
Stella

$17mma

You could leave a notice of correction to be considered by any lender searching your file, however this does not mean that you wil be granted credit of any kind.Are your payments up to date on other accounts? you dont have long to go for it to drop off your file, and you may be able to get better mortgage offers deals if you wait for the adverse info to be removed before applying for a mortgage..If you do add a notice of correction ( no harm there) remember that searches on your fil whilst looking for a mortgage will also affectyour credit score ( whatever that is as different with each lender ) also maybe ask them to do a generic search to begin with which does not leave a footprint just to provisionally agree a mortgage for you then do a full check ( which wil leave a footprint later) have you read martins mortgage manual thingy? http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1106239308,24268,

file_wizzard

$17mma wrote:

If you do add a notice of correction ( no harm there)

Just to clarify, whilst in principal the option to have a notice of correction was intended to help consumers, in general they do more harm than good.

If a notice of correction is added to a file it forces all credit searches to be done manually, theoretically this should be a good thing, however what you may find is that after the 3 year stage the old defaults / bad payment history may be ignored by some automated systems, and they will provide a “pass” mark, whilst a manual intervention may receive a less favourable review. Also many lenders see those who a add notice of correction as trying to manipulate the system, and have an unofficial policy to refuse all applications with notices present. ( mortgages can be exceptions)

So in short, notices of correction are intended to help, but can sometimes do more harm than good.

heybigspender2006

That is exceptionally useful to know.

EstellaK

what do you mean by '3 year' for defaults?

file_wizzard

EstellaK wrote:

what do you mean by '3 year' for defaults?

Defaults and adverse information will stay on your file for up to 6 years (some items 5 years Scotland)

However many lenders only search the last 3 years of data in a lot of credit applications, hence the questions like "have you lived at your current address more than 3 years" Ect, Ect.

Current accounts especially are only normally scored using the last 3 years of account data (unless you have serious adverse i.e CCJ's / Bankruptcy Ect.)

beanielou

Thanks for that interesting info file wizzard
So if i can also ask take it then that if there ia a account showing 2/3 1 month lates then they are basically ignored after 3 years?
Thanks

EstellaK

'Defaults and adverse information will stay on your file for up to 6 years (5 years Scotland'

Why is it different for scotland?? Is that if you live in scotland or if the company you got credit from is based in scotland.

I am Scottish and I have a satisfied default on my file with the default date of Feb 2001- does this mean that I can ask for this to be removed?

file_wizzard

beanielou wrote:

Thanks for that interesting info file wizzard
So if i can also ask take it then that if there ia a account showing 2/3 1 month lates then they are basically ignored after 3 years?
Thanks

In some cases, not all. Depends on the lender and their scoring policy.

lenders are aware that the vast majority of people will have some minor adverse on their file, if they looked for 6 years perfect history with everyone who came through the door then they probably wouldn’t do a lot of business.

CCJ’s and major adverse are viewed slightly differently, but in general if you can demonstrate 36 months ish of reasonable behaviour then most mainstream products should be available to you.

As I said though this is depended on each individual product / lender and their own risk policy’s, there are no hard and fast rules in this game !

file_wizzard

EstellaK wrote:

'Defaults and adverse information will stay on your file for up to 6 years (5 years Scotland'

Why is it different for scotland?? Is that if you live in scotland or if the company you got credit from is based in scotland.

I am Scottish and I have a satisfied default on my file with the default date of Feb 2001- does this mean that I can ask for this to be removed?

Complex issue, technically CCJ's / Bankruptcy’s / IVA's (Trust deed in Scotland) are governed by Scottish law and legally expire from your file after 5 years, however some if not all CCA agreements are governed by English law, and hence the full 6 years will apply.

In the case of your default, unfortunately I would imagine it will remain until Feb 2007, however you can always raise a notice of dispute ( not a notice of correction) with the CRA and see what happens. It may be that the data controller fails to respond and the entry is suppressed few months early.

EstellaK

what reason would I have for raising a notice of dispute if I know that the debt is genuine?