Credit score craziness

bluelines

Hello all,

I'm an FTB (joint with my gf) applying for a mortgage through Accord - they've been pretty slow processing the application because of the sheer volume they've been receiving (they're by far the best rate), but eventually they've come back and told our broker that we've failed on the credit score. Now I've been on CreditExpert for a while and my rating there is 992... If it was any better I'd be on that TV ad, eh?!

I've also checked my Equifax rating... And that's where the problem is. I have a 'very poor' rating there, because it says I'm not on the electoral roll (but I am), and I don't have any credit agreements at that address to prove my worthiness (but I do - Mobile, bank loan, HP from last year)... It looks like they've just not properly connected my address in the system with the address these things are registered to (even tho they appear to be identical in the "Attributable Data" section where those credit agreements appear).

I'm guessing this is where the problem is, so I've raised a dispute with Equifax online... I guess my main questions are:

1) Are they likely to sort it out easily, and how long will it take?

2) If we go back to Accord with the new info, are they likely to reconsider?

I've never been the smartest money mind in the world, but I'm debt free (except Student Loan), haven't been over my OD limit in 5+ years, and generally live within my means, so it's massively frustrating that this is getting in the way!

Any advice appreciated.

Thrugelmir

Lenders have their own means of credit rating.

Lenders can now afford to be picky to who they advance mortgage monies to.

Little consolation I appreciate, but this maybe part of the issue.

badmoon

I know from my own experience that the credit reference agencies can hold different details to each other.

For example Experian didn't show an outstanding default that was due to fall off my account in January of this year, however Equifax did. There are other bits of information that are different too so that could explain part of the problem and the difference.

When I wrote to Equifax to ask if they could update the information as the default date was incorrect according to my records, i did this via the online email form you can use to dispute information. They came back to me within 48 hours to say they would contact the creditor, it then took a couple of weeks for this to be done.

Another thing to add is that despite the good rating you get on Credit Expert, apparently it's only really a guide more than anything you can pay real credence to. Creditors have their own scoring systems which we're unlikely ever to really be privy to as regards the ins and outs.

Once you've got everything sorted, go back to Accord and see if they'll assist you further and if you can appeal. It's worth a shot.

Good luck.

bluelines

Thanks guys. I do know that lenders will form their own judgement from the data they get from these CRAs, but obviously the data they're getting from Equifax is somewhat incomplete, which is the real pain.

I live in a flat at the moment, which is in a block which has both building name and street number, and there's often slight discrepancies between addresses on official stuff... I'm sure it's these types of problem that are one of the main reasons that people with good credit history get declined for things, because the automated system can't use a bit of common sense to associate similar entries...

I know this is turning into more of a rant than asking for advice(!), but I do wonder if this will also take weeks (rather than days) to resolve, even if it is a really minor correction... Because if so, then any other lenders that we approach are likely to form the same judgement, surely? And the flat we've got an offer on isn't just going to wait around indefinitely for us to deal with someone else's administrative !!!!-up...

FraudBuster

Be aware that the mortgage lenders also use this:

http://www.nhunter.co.uk/

VIGILANT22

bluelines

You should also be aware that lenders advertise headline rates to draw borrowers in and then pick "the cream of the barley". ie Today I spoke with a business development manager from a certain lender who said they have never had one application pass the 90% loan to value application....

bluelines

Yeah - I do get the feeling that Accord are just looking for any excuse to decline anyone over 75% LTV... I've got a friend who applied to Accord at almost the same time and was just turned down because he apparently had too many deposits on an online betting site (he's not exactly Gazza)... They've even approved us @ 75% but there's no way we can put together a 25% deposit as FTBs.

One wonders why they create so much extra work for themselves by soliciting so many doomed applications - surely they will get enough customers at the lower LTVs anyway?