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First Post: How to screw your credit rating without even knowing it!
mixmaster
Posts: 8 Forumite
Hello people,
New to this board so as my first post I thought I mightaswell give a history on how my credit rating got so bad without much effort at all.
Started with a perfectly clean credit history, nothing other than mobile phone contracts and an overdraft which were always up to date.
Then I started university: Was offered the standard £4k loan per year to cover expenses (this was obviously accepted), opened a student bank account with £1250 interest free overdraft, credit card (which was thankfully turned down).
Decided towards the end of my first year that uni wasn't for me, told the relevant authorities within the uni of my decision and left. After I left uni our family moved house about 6 months later. Unaware to me there was a clear breakdown in communication somewhere and the university still thought I was attending, and hence still charging me for accomodation, although all the correspondance was sent to my old address. Also my so called "interest free overdraft" became not-so interest free as I was no longer a student, so the amount owed rapidly increased due to the extra interest, this account was then defaulted as I was unable to pay, even after explaining my situation to the bank. A similar event happened with my mobile phone contract as it was about 6 months after uni until I had started a new job.
About 3 years down the line after re-registering on the electoral roll I was then inundated with letters from bailiffs who were demanding £1700 owed to the university. I later found out this had started out as a £600 rent payment, which had gone to a county court, made a judgement against me, added £1100 in fees etc. all about 2 years prior to me even finding out this had happened!
I now have a very good job earning a good sum of money and the debts are almost cleared but I'm left with a CCJ and two defaults on my record!
It sickens me how the system can totally screw up someone who clearly just had a bad few months. I'm now in the market to buy a house but due to my record its completely out of the question except on a high-risk, high-interest mortgage. Can't even get a mobile phone contract!
Thats life I suppose?
New to this board so as my first post I thought I mightaswell give a history on how my credit rating got so bad without much effort at all.
Started with a perfectly clean credit history, nothing other than mobile phone contracts and an overdraft which were always up to date.
Then I started university: Was offered the standard £4k loan per year to cover expenses (this was obviously accepted), opened a student bank account with £1250 interest free overdraft, credit card (which was thankfully turned down).
Decided towards the end of my first year that uni wasn't for me, told the relevant authorities within the uni of my decision and left. After I left uni our family moved house about 6 months later. Unaware to me there was a clear breakdown in communication somewhere and the university still thought I was attending, and hence still charging me for accomodation, although all the correspondance was sent to my old address. Also my so called "interest free overdraft" became not-so interest free as I was no longer a student, so the amount owed rapidly increased due to the extra interest, this account was then defaulted as I was unable to pay, even after explaining my situation to the bank. A similar event happened with my mobile phone contract as it was about 6 months after uni until I had started a new job.
About 3 years down the line after re-registering on the electoral roll I was then inundated with letters from bailiffs who were demanding £1700 owed to the university. I later found out this had started out as a £600 rent payment, which had gone to a county court, made a judgement against me, added £1100 in fees etc. all about 2 years prior to me even finding out this had happened!
I now have a very good job earning a good sum of money and the debts are almost cleared but I'm left with a CCJ and two defaults on my record!
It sickens me how the system can totally screw up someone who clearly just had a bad few months. I'm now in the market to buy a house but due to my record its completely out of the question except on a high-risk, high-interest mortgage. Can't even get a mobile phone contract!
Thats life I suppose?
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Comments
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Cheers Clapton, I will give them a try0
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Just to send a big hugs - at least you're on the way up!Nerd no 109 Long haulers supporters DFW #1! Even in the darkest moments, love and hope are always possible.0
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Yeah, its still frustrating though. I guess its a good thing as I'm still quite young. Its better learn the harsh realities of life as early as possible so to be wary in future0
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