Ex- Credit Analyst - Throw your Credit & Underwriting Q's at me.

Brown_suga

Mike_St_Helens wrote:

What is the date on the defaults ?

Mike

1) Two showing for 2003
2) Third showing for 2006

KerryGold

Mike you didn't answer my question yet!

bigdec

Just a quick question at the moment my credit card monthly payments are being paid buy payment protection insurance. The monthly amounts being paid always get paid late on to the account the credit card company are aware that the insurance is paying the monthly amount and I have managed to get the late payment fee repaid each month. My qusetion is what will this do to my credit file as hopfully within the next 2 months I should be working again and intend to get a credit report from experian.

donglefan

Hello Mike

Please could you advise about trouble I have getting any kind of credit.

I started money saving about four months ago. Prior to that no credit cards and the only debts a mortgage of about five years standing with no defaults and a student loan with repayments officially deferred year on year. Also never gone over my overdraft limit at my bank where I've had an account for about ten years.

A couple of months ago I applied for four credit cards at once (I now know that's a bad thing to do), aimed at stoozing, was given only one at a limit of £500 and refused three others.
A month later applied for a credit account with a shopping catalogue company which was refused. (My boyfriend who also has no credit history had no problem getting the catalogue account.) Now I've been refused the Alliance and Leicester premier account - I didn't even bother applying for their credit card.

I have also recently successfully opened a no-overdraft bank account with smile (free wine offer and £10 from rpoints) and a savings account with hsbc (£20 m&s voucher.)

Got credit reports from equifax and experian - neither had anything adverse, but neither had much at all. My mortgage did not show up, nor my ten years of being a good bank customer with overdraft facility.

My own bank is actively offering me one of their credit cards and when I told them I'd been refused several other credit cards they told me that if I were not eligible for one of theirs they wouldn't be offering it to me. Their card would be useful to me and since it's the only one on offer I am tempted to apply for that too, but I don't want to further damage my credit rating.

I am self-employed which probably doesn't help. Also I am soon moving out of rented accommodation into my own house - will ticking the homeowner box likely improve my chances of credit? On all the forms I've had to tick living in rented accommodation as there has been no room to explain that this is only temporary while my house is being underpinned.

Where to go from here to try to improve the situation please?

Thank you for your time.
Rufcut

Mike_St_Helens

KerryGold wrote:

Hi Mike,

I'm trying to improve my credit rating in the hope for us to buy a house in the new year. (I currently own our flat with a mortgage).

Currently I have 'Good' history, on my files but with Equifax I have a 'warning' level on credit payments.

As far as I can see this is because in 2002/2003 I have three yellow 2 circles - 2 on a catalogue payment (stupid me, small amount to pay forgot to do it) and one on a credit card.

Since then I have greatly improved, and apart from an odd wobble (one or two yellow 1s per year on ONE account) everything else is perfect.

I currently owe less than £1500 total on one OD and one CC and I'm working hard to clear them.

What I want to know is how long are yellow 1s and 2s considered bad enough to make me still a 'warning' in this section despite the fact I'm now excellent in paying on time and managing my debt.

I.e. are 2s a warning for say 3 years and you be allowed one late payment per year? Or something?

Hope you can help!
Thanks! :beer:

Hi there, Sorry Kerrygold.. Must have wizzed past this one.

I wouldnt worry too much about these odd wobbles... We all wobble and the Mortgage firms know it ! They are generally a bit more lenient than cards/loans, purley because the money can not be frittered away and it is simply secured wholey and they have an assett. I think almost all Mortgage firms would underwite your mortgage judgementally rather than scoreing it.. An underwriter would be mad not to approve a mortgage because of a little wobble... just think how unprofitable it would be for them !

Hope that helps...

Mike

Mike_St_Helens

bigdec wrote:

Just a quick question at the moment my credit card monthly payments are being paid buy payment protection insurance. The monthly amounts being paid always get paid late on to the account the credit card company are aware that the insurance is paying the monthly amount and I have managed to get the late payment fee repaid each month. My qusetion is what will this do to my credit file as hopfully within the next 2 months I should be working again and intend to get a credit report from experian.

Hi Bigdec,

This is a very common problem when Insurance is paying the debt. I really dont know where you stand contractually... However if you appeal to their data controller and ask for the late payments tbe updated then im sure they would do it for you. Did you know also that the fact that you have claimed on this insurance will also now appear on your credit file for 6 years. Its not so much a bad thing, just alerts lenders to the faxct you have claimed before.

Mike

Mike_St_Helens

donglefan wrote:

Hello Mike

Please could you advise about trouble I have getting any kind of credit.

I started money saving about four months ago. Prior to that no credit cards and the only debts a mortgage of about five years standing with no defaults and a student loan with repayments officially deferred year on year. Also never gone over my overdraft limit at my bank where I've had an account for about ten years.

A couple of months ago I applied for four credit cards at once (I now know that's a bad thing to do), aimed at stoozing, was given only one at a limit of £500 and refused three others.
A month later applied for a credit account with a shopping catalogue company which was refused. (My boyfriend who also has no credit history had no problem getting the catalogue account.) Now I've been refused the Alliance and Leicester premier account - I didn't even bother applying for their credit card.

I have also recently successfully opened a no-overdraft bank account with smile (free wine offer and £10 from rpoints) and a savings account with hsbc (£20 m&s voucher.)

Got credit reports from equifax and experian - neither had anything adverse, but neither had much at all. My mortgage did not show up, nor my ten years of being a good bank customer with overdraft facility.

My own bank is actively offering me one of their credit cards and when I told them I'd been refused several other credit cards they told me that if I were not eligible for one of theirs they wouldn't be offering it to me. Their card would be useful to me and since it's the only one on offer I am tempted to apply for that too, but I don't want to further damage my credit rating.

I am self-employed which probably doesn't help. Also I am soon moving out of rented accommodation into my own house - will ticking the homeowner box likely improve my chances of credit? On all the forms I've had to tick living in rented accommodation as there has been no room to explain that this is only temporary while my house is being underpinned.

Where to go from here to try to improve the situation please?

Thank you for your time.
Rufcut

Hi there, I think you have answered your own question here. The main reason your not having much luch is the fact that you have very little on your file, although you have a good record with your own bank, not all banks report info to the agencies.

You should tick that you are a homeowner, this is what you are. This will improve your rating, sometimes being self employed aint too helpful... How long have you been S/E for ?

Did you take out the £500 card, you should... This will show on your file, if it is a bank that reports mind, and will in time show lenders that you can manage credit well. dont apply for too many cards at once, if you have applied for 4 in a month, id leave it for a month or two. Your bank have offered you a card, id go for it, they know you, your banking history and are more likley to give you a better limit.

Hope that helps !

donglefan

Mike, thank you for the advice.

I applied for my own bank's card today and was awarded Platinum :j which was a bit pointless as it's of little use for stoozing, but it made me feel a bit better about the rejections everywhere else.

I had not been saying I was a homeowner because I've previously let my house and was including letting income in my annual total, so I thought I couldn't have it both ways.

I have been self employed for six years but don't earn much.

Rufcut

desperatelyinthered

Hi Mike,

Not sure if you can help?

I am on a DMP and obviously my credit rating is pretty poor because of defaults and amount of debt. I have a mortgage (high street lender) and a 2nd mortgage (Ge money). When my current rate is up they usually just ask me to pick a new one (main mort). I am wondering if you think they would consider to increase mortgage to pay of 2nd mortgage (its on a variable rate and i would like to fix it), or if I am better off just going straight to an adverse credit mortgage company?

I have had my mortgage with Natwest for 3 years now, I am not in arrears at the moment however when things got bad I missed 2 payments (nearly 2 years ago now which has been cleared)

I appreciate that you may not have dealt with mortgages but any guidance would be useful!

nicecarkeys

Mike

I would like to know about the information passed between banks lenders etc that we do not have access to. All info on CRA's files we can see if we pay to see it but what about the info that some lenders addmitted to earlier this year that is passed between lenders in coded messages?

I have lots of credit but I also have a healthy income. My credit on the CEA's files( that I am allowed to see) is perfect. No other markers GAIN CIFAS etc
long time in job & home and yet I have been declined by a couple of lenders recently.

I have no idea why I should be declined at all?
I do however make lenders etc correct mistakes they have made on my CRA files and I have been recently querying PPI with a couple of lenders who I may take court action against for mis selling.

Could I have negitive info being sent between lenders that I have no access to?