Credit file question regarding defaults

yenool

I have just checked my credit files and I have 7 defaults. Not clever!

My question is this, 6 of the seven accounts state : account closed on XXX with outstanding balance of £XXX.. However they have an 'opening balance' of £0.00.

The final account also states : account closed on XXX with outstanding balance of £XXX, however it also has an 'opening balance' which is the same as the outstanding balance.

Can someone please explain what the opening balances are about and what the difference is?


Finally I have another account on my file which is marked as settled (because I fully paid up on time, no defaults, late payments or anything), yet the opening balance still states £1000 which was the original loan amount.

BTW, I used 'checkmyfile' to access my reports, which I no realise is a mistake because I could have got them free! hey ho, never mind.

niccatw

If your defaults were on credit cards, then the opening balance would be 0 as there would have been nothing on then when the companies issued them to you. If you then did any balance transfers or loan consolidations, then the opening balance would be for the amount you transferred or consolidated.

yenool

Some were credit cards and others were loans.......... doesn't make sense to me because surely the opening balance shuld be the same as the outstanding balance?

niccatw

No, the opening balance is what was on the card when it was first issued to you, so that would always be 0 for anything other than a balance transfer or a consolidation loan. With a balance transfer or consolidation loan, the opening balance is whatever amount they agreed to give you when you applied for the card. The outsatnding balance is what is currently on the card.

Hope this makes sense

yenool

niccatw wrote: »

No, the opening balance is what was on the card when it was first issued to you, so that would always be 0 for anything other than a balance transfer or a consolidation loan. With a balance transfer or consolidation loan, the opening balance is whatever amount they agreed to give you when you applied for the card. The outsatnding balance is what is currently on the card.

Hope this makes sense

The account which has an opening balance of £850 is a loan account. Yet other loan accounts have No opening balance stated at all. The loan was not a consolidation loan.

niccatw

Hmmm, then I'm not sure. I'd perhaps check it out with the loan provider. Or you could ask the credit reference agency direct? It might be that they've inserted it incorrectly. Sorry I can't be of more help!