Just checked my credit rating now im worried!!!

Chrisl

Hi,

I was planning on buying a house with my partner and advised by the mortgage broker to check my credit rating before applying!

I thought I would have a good rating as never really had any problems, the odd accidental late payment but no serious issues and i havent even had any credit cards!

I went onto Experian and my credit score was only 631 which is in the 'poor' catagory!! I am now totally shocked and feel sick as now i probably wont get a mortgage!

I just cant understand why my score is so low! I havent had any defaults or ccjs or anything of the sort! I have direct debits and they all state satisfactory! I have a loan and £3500 outstanding! The only bad things on there are 6 late payments which i do not understamd either as I only thought I had 2 and that i moved and have not yet changed my address with banks or the electoroll roll.

Can anyone throw any light onto why its so bad and how long will it take to get better and what i can do to make it better?

Thanks,

Chris

Tixy

Hi

Your actual credit score is not something to put too much emphasis on, in fact people usually say its not worth paying for.

What is important is your full credit report. Not being on the electoral roll which seriously hamper any chance of getting credit of any sort. You need to sort this asap.

Certainly the late payments won't help but they would not be viewed as bad as defaults/CCJs etc.

What accounts are showing on your report aside from your loan? are the late payments on the loan?
Get on the electoral roll asap (it can take 6-8weeks to update onto your credit report) and then have a read of this - http://www.moneysavingexpert.com/loans/credit-rating-credit-score

Chrisl

Hi Tixy,

I am on the electoroll roll but under my previous address, will this affect my score?

I have 8 accounts as per the below:

DFS Sofa Finance
Insurance - Settled
Loan - Outstanding £3141
Current Bank Account 1
Camera Loan - Settled
Current account 2
Next Account - 1 late payment
Credit Card - Never Used

I have never made a late payment on the loan and other than the next late payment thats the only really bad thing?

I just dont understand why it says I have such a bad score??

Thanks,

Chris

diable

How much credit are you looking for? If you are buying in London and want 500k then it may be an issue but if you are in the middle of no where and need 85k then it shouldn't be a problem.

Chrisl

I am first time buying and after about 100k but doesnt solve the question of why my score is so bad, i mean in total I only owe 3k and many people owe way more than me so why is mine low, especially that everything is always paid other than the odd addicental late payment?

jonjamie1970

Whats your available credit on the Card

Chrisl

never used the card but according to experian its only £25 !!!!!

Chrisl

it doesnt make sense cause the bank have increased my overdraft to 2500 as well and i didnt even ask for that so why £25 on the card???????

DVardysShadow

Chrisl wrote: »

Hi Tixy,

I am on the electoroll roll but under my previous address, will this affect my score?

I have 8 accounts as per the below:

DFS Sofa Finance
Insurance - Settled
Loan - Outstanding £3141
Current Bank Account 1
Camera Loan - Settled
Current account 2
Next Account - 1 late payment
Credit Card - Never Used

I have never made a late payment on the loan and other than the next late payment thats the only really bad thing?

I just dont understand why it says I have such a bad score??

Thanks,

Chris

Just a guess. You have taken finance which comes with the article you buy, rather than putting it on a credit card or saving up. It suggests to me that you are using finance which is lower rated for the credit score.

Chrisl

oh i see, if the finance for the camera is settled, can it be deleted from my history?

DVardysShadow

Chrisl wrote: »

oh i see, if the finance for the camera is settled, can it be deleted from my history?

You may struggle. It is to your advantage if you want more of that type of finance, and your score of 631 is probably perfect for a customer to take it out - customers with a higher score would probably not be such good prospects.

However, probably not so good for a mortgage.