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

Snaggles

Mike_St_Helens wrote:

You know ur stuff queen !

Mike xx

To be honest, I felt like I was being a bit vague, but only because it's not really my area. I worked as a mortgage assessor before moving into judgemental lending so saw/learnt a lot, but the majority of the 'technical stuff' is dealt with by the solicitor, so you don't always see exactly what happens.

Thanks though, and likewise!

trevor_john

Could my problem be the vr.I lived at my last address for 7 years and my current address for just 3 months.As i mentioned in an earlier post all my iva stuff has now dropped off my file.I have no other "dodgy" stuff on my file.

I have 1 credit card that is running fine with 2k balance and a van loan for 12k that is very recent.I really cannot see how i have been declined by mbna.

Jo_R_2

I have a very general question...

Me and OH are currently looking for another house to rent. We recently filled out a credit reference form from a letting agency which asked if we had ever had any kind of 'adverse credit.' Basically we couldn't agree as to what exactly 'adverse' covered and what they would thus want to know about.

For example, I have on occasion missed DD payments, on a very scattered basis over the last few years. My bank account conduct isn't exemplary, I live in my overdraft from my student days and more than often get charged for going over. However most of the time everything gets paid. The only thing that strikes me as serious is a letter I got a few years ago (can't remember exactly but late 2002/first half of 2003) from a debt collection agency over a mobile phone contract which I had some trouble with, and when I received the letter I paid it in full.

What would be termed 'adverse' and what not?

M_Thomson

Mike_St_Helens wrote:

Its not up to EXPERIAN/EQUIFAX to make the decision, they simply provide black and white facts.

It is up to the lender to tell you why you have been declined, you can write or call them and ask. I always used to give a reason, a simple your credit score is crap... isnt a sufficiant explination, there must be a reason for this and I would tell a customer.

Anything through sreaches, voters roll, time at add/employment, amount of debt etc etc can all have an influence.

You are not supposed to tell an indvidual the exact reason though if it comes to credit scoring otherwise it could leave the lender open to application fraud.

Mike_St_Helens

Jo_R wrote:

I have a very general question...

Me and OH are currently looking for another house to rent. We recently filled out a credit reference form from a letting agency which asked if we had ever had any kind of 'adverse credit.' Basically we couldn't agree as to what exactly 'adverse' covered and what they would thus want to know about.

For example, I have on occasion missed DD payments, on a very scattered basis over the last few years. My bank account conduct isn't exemplary, I live in my overdraft from my student days and more than often get charged for going over. However most of the time everything gets paid. The only thing that strikes me as serious is a letter I got a few years ago (can't remember exactly but late 2002/first half of 2003) from a debt collection agency over a mobile phone contract which I had some trouble with, and when I received the letter I paid it in full.

What would be termed 'adverse' and what not?

Hi there, I wouldnt say you had adverse credit at all. I would say anything over £500 and has been more than 3 months in arrears within the last 12 months, Now that is light advsres....

I rented a while ago and had no problems in being accepted and I had the odd missed payment or so

Mike

Mike_St_Helens

M_Thomson wrote:

You are not supposed to tell an indvidual the exact reason though if it comes to credit scoring otherwise it could leave the lender open to application fraud.

Hi there, This isnt necessarily true, To start why if someone had a low score due to a reason you can see why on earth would you not tell them. Second If a customer requested a data access request then they would see your notes as to why you have come to such a decision... I guess this is only in judgemental lending mind.

I wouldnt say it is open to application fraud, people are clued up really... You cant 'mend' or 'alter' info on your credit file and that is what the score is based upon.

Mike

M_Thomson

Mike_St_Helens wrote:

Hi there, This isnt necessarily true, To start why if someone had a low score due to a reason you can see why on earth would you not tell them. Second If a customer requested a data access request then they would see your notes as to why you have come to such a decision... I guess this is only in judgemental lending mind.

I wouldnt say it is open to application fraud, people are clued up really... You cant 'mend' or 'alter' info on your credit file and that is what the score is based upon.

Mike

Mike,
What I am saying is that if you say it's down to your credit score then I am sure you employer would be fine with the fact that you told the customer that. Or if you said they had to much available credit in relation to their income then I am sure that is ok as well. If you said the exact reason was that they were scored worse because they didn't have a mortgage, or they didn't have 2 kids etc, then that would reveal the precise model that they use which I am sure a bank would want to keep confidential. If people knew that Barclays scored this way or Natwest scored that way it would encourage people to lie on their application forms.

Jo_R_2

Mike_St_Helens wrote:

Hi there, I wouldnt say you had adverse credit at all. I would say anything over £500 and has been more than 3 months in arrears within the last 12 months, Now that is light advsres....

Cheers Mike, much appreciated! :T

loveandlight

Hello Mike St Helens,

Would you help me please? I am about to apply for a re-mortgage so got copies of my credit files to check everything was ok before I applied. I am sooo glad I did that because I discovered that Telewest a couple of months ago recorded me as being in arrears with them for £44.00 which is not true. I phoned them up and they admitted that it was a mistake on their part and that they would get it rectified and send me a letter to confirm it. To date they haven't done anything and no letter from them either.Every time I phone them I get a different person and promises of calling me back but no-one does.

How will this negative mark on my credit file affect me now? I am so angry with Telewest as I had only been with them for two months and don't owe them anything and they don't seem to care. I am also worried because of how it will affect me with mortgage lenders and I was planning on applying for another credit card to do a balance transfer.

justheclothesonmyback

Mike_St_Helens wrote:

You may be linked, but with new laws, even with her having a tarnished file, they are not allowed to use that info, you and you alone are the person applying.

Mike

Hi Mike, this was your response to thorpe1 regards being linked to his partner who had a tarnished credit file. Just to clarify and get some reassurance as my situation is similar in reverse (I am the one with the bad credit) ... my partner and I have no joint accounts whatsoever and his rating is over 900, always pays on time etc, but on his credit file with experian my name appears under alias/associates. I don't understand how they got this information unless it was from a loan application I made in my name only, but which also as standard, asked for my personal details, marital status, total household income etc. He is thinking of getting a personal loan out soon and I'm worried that I will have a negative impact on his chances, but from what you say above, even with my name as an associate, they will only base a decision on his file alone? Would they have authority to search my file too if he applies for a loan in his name only - would feel really guilty if I scuppered his chances as he doesn't know that I'm in debt - we handle our own separate finances.
many thanks in advance