Your Credit Rating: How it works and How to improve it Discussion Area

jay78

lucy_w86 wrote: »

How long do accounts stay on your credit report for because I have old settled credit cards which are showing up on my report?

Obviously thoughout life you will change credit cards quite often to ensure you get a 0% deal. You will then end up with loads of accounts on your report.

I believe it is 6 years after the account has been settled. With regards to having multiple accounts don't worry. This is normal. A credit card company will only consider your available credit as a proportion of your income. If you always paid your past debts on time and settled them then this is a good thing.

Newstart_4

ive just been given a 650 pound overdraft from my bank, having struggled to get one for the last 2 years of having the bank account,

My question is how do i best use it to improve my credit rating? im currently retaining for a new occupation that should mean im earing more for the family, and will at some point want to proceede with my council house right to buy, as such i would like to be able to rebuild my credit rating as best as possable to secure a better mortgage deal when im ready to get on the property ladder.

ie do i just make a little use of it knowing when my credits go in i will be on a possative ballance or should i be aiming to always be into a little paying a bit of interest for the use of the the facility, or is the fact i have the facility even if i dont make use of it helpfull.

also how will the bank prefer to see me using it? with a view to seeing me as a cusomter worth extending further credit to in the future?

danthemoneysavingman

Newstart wrote: »

ive just been given a 650 pound overdraft from my bank, having struggled to get one for the last 2 years of having the bank account,

My question is how do i best use it to improve my credit rating? im currently retaining for a new occupation that should mean im earing more for the family, and will at some point want to proceede with my council house right to buy, as such i would like to be able to rebuild my credit rating as best as possable to secure a better mortgage deal when im ready to get on the property ladder.

ie do i just make a little use of it knowing when my credits go in i will be on a possative ballance or should i be aiming to always be into a little paying a bit of interest for the use of the the facility, or is the fact i have the facility even if i dont make use of it helpfull.

also how will the bank prefer to see me using it? with a view to seeing me as a cusomter worth extending further credit to in the future?

The best thing for your rating is probably having the facility. Being overdrawn will not likely improve your credit rating - you will be seen (possibly) as someone who retains outstanding debt rather than a good credit risk. Dipping in & out of it to some extent may help, but don't quote me on that - it really depends on the structure of lenders' credit risk scorecards, and that of the bureau(x). If you can trust yourself with a credit card, I would follow Martin's advice as Micheline above stated they had. Using & paying off a credit card each month will help improve your rating. Good luck.

jamey15

Hi,

Please advice this free credit report (trial) as suggested in the site - i used it ... Can you have multiple trials or its one off?

Thanks

KITTEN_3

I have myself asked for a credit check from experian today after being refused a loan.:( I found I have 2 defaults on my record 1 dated from 2000 and 1 from 2001. You may think im thick but as previously asked how does this disappear from the file:question: As its obvious it's been over 6 yrs and I still have them showing. Will experian remove them if I ask or have I to chase some company up to sort it

My other problem on there is a loan company I am with, they tried to take a payment too early way back in Feb, because the bank declined the payment the loan co cancelled my DD. I sorted the problem quickly but due to the DD date being changed my report is showing a missed payment and an orange ball with number 1 on it for the last 4 months.:( DoI/Can I get the loan company to change this and is there a charge:question:

Could someone tell me what this default stuff means Soz if this is thick but totally unsure about what it is. I know at least one was paid in full.

Any info would be brill!

Thanks in advance.:o

AmyFlo

I have just read the article on Credit scoring. What do you do if the bank and Experian are doing nothing?

I have been trying to get a new bank account but was shocked to be refused and referred to my credit record. My record shows an unpiad credit card and bank loan from Bank of Scotland. Both of these were paid off in full seven years ago. I have lodged my protest with Experian, who have sent me a letter and noted the credit file (I have to continue to be a monthly subscriber though). I have also contacted Bank of Scotland seventeen times. They are full of emtly promises of callbacks and letters confirming I have paid in full, but thus far, nothing. This has been going on since last year!
What can I do?

AlexGuinness

I have a couple of questions relating to the Credit Referencing agencies.

Firstly, my Experien report shows one of my previous addresses (the one I was at for 5+ years until 3 years ago) as being slightly incorrect. It lists the address as Number 20, whereas it should read 20A - will this be causing me the problems I am having? It was a house that was converted into 2 flats, number 20 downstairs and mine was 20A upstairs.

I applied for my Callcredit one last and received post from them this morning. They have sent me someone else's report. I need to know what to do about this as I assume mine has been sent to someone random too.

If anyone reading this has the initials RPR, lives in the Peterborough area and is waiting for a report, you should perhaps be contacting Callcredit as a matter of urgency. I have checked 192.com and the intended recipient is ex-directory...

smithja

[EMAIL="Mark.Ward@callcredit.co.uk"]Mark.Ward@callcredit.co.uk[/EMAIL] Mark Ward is the Head of Consumer services anda guy called John McAndrew is the CEO, I would copy him in, everytime I try to put his email address it replaces the J is an emoticon. It uses the same format.James

PaulW922

KITTEN wrote: »

I have myself asked for a credit check from experian today after being refused a loan.:( I found I have 2 defaults on my record 1 dated from 2000 and 1 from 2001. You may think im thick but as previously asked how does this disappear from the file:question: As its obvious it's been over 6 yrs and I still have them showing. Will experian remove them if I ask or have I to chase some company up to sort it

My other problem on there is a loan company I am with, they tried to take a payment too early way back in Feb, because the bank declined the payment the loan co cancelled my DD. I sorted the problem quickly but due to the DD date being changed my report is showing a missed payment and an orange ball with number 1 on it for the last 4 months.:( DoI/Can I get the loan company to change this and is there a charge:question:

Could someone tell me what this default stuff means Soz if this is thick but totally unsure about what it is. I know at least one was paid in full.

Any info would be brill!

Thanks in advance.:o

It is difficult to remove information if it is correct. If your loan is constantly a month behind then until you bring it up-to-date you will have this marked on your file all the time. You need to call your loan company and check the situation out with them. If the data is wrong they must put it right for free - you don't pay. You might be being charged a fee for being behind with your payments too. Ask them..

If you have two defaults on your file they will have automatically have dropped off after six years. However, this is six years from the date of default, not from account opening. I suggest you double check your report and if the default dates are over six years ago ask Experian to remove them straight away.

A default means you have broken the agreement and the loan company has terminated it. It is a bad thing to have, but not as bad as a CCJ. As time goes by the defaults have less of an effect on your rating. It is better still if you pay them.

System

I've recently been turned down for some loans/credit cards as I had "too much credit available". I'd closed 4 credit card accounts about 3 months before and was told that this would be updated on the credit file within a month. I checked my credit file afterwards and 2 of the accounts were still showing up, presumably this is why I was declined further credit.

A while later I asked Natwest to reduce my credit card limit from £4,100 to £1,500 so that I could try again with another application. I waited long enough so that my credit file would be updated yet once again I was declined. When I checked Natwest had reduced my credit limit as requested but a few days later "automatically" increased it to £5,600!!

Is there any comeback against banks who do not keep the information in your credit file accurate and behave like this with your credit limits? Obviously I've taken a number of hits on my credit file now because my applications were turned down but I believe this shouldn't have been the case.

If the banks are accountable who can I complain to and what are my options? I complained to Natwest obviously but have sent an unhelpful reply.

Yours a very frustrated money saver!