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

johnsons_2

johnsons wrote: »

Hi,
my daughter and her boyfriend have had there credit rating forms sent to them most of there credit is 0 but there is one on there that is 8 and they
were told that this could not come of for another two years.This was with HSBC bank which they have been saving with so they could get a morgage
they went to the bank(HSBC) this was were her boyfriend had his credit card to see if this could now be removed but they have been told nothing can be done it has to run for another two years.They have been refused a morgage as first time buyers because of this.Even though this was paid up a long time ago and did not go to court.Is there anyway that this could be removed or has this to run for another 2 years?

Can anybody help on this matter please.

woodthorpe82

Having read Martin's email regarding Capital One's 4% cashback card I thought I'll make use of that, especially with Christmas coming up. Just received a refusal letter saying our credit score was 'Low'. My husband and I are indignant as we have never been refused credit. We have no debt, apart from the mortgage and one credit card which is 0% (I am a bit of a credit tart). Otherwise we pay off our credit cards in full each month. Have just sent off for our credit reports from Experian, Callcredit and Equifax but am certain they are ok. Is it worth pursuing on principal or just accept that we would not make them any money?

Obsidian_2

I have recently updated my electoral roll details with Experian as they held the incorrect information.

I also want to send my electoral roll details to the other 2 agencies.

Am I better sending this information first & then waiting a while before requesting my £2 report or would it be ok to do this at the same time?

In your experience, are they likely to update my electoral roll details & then send the report or just send the report immediately without the updated information?

Many thanks.

Rachael

danthemoneysavingman

Obsidian wrote: »

I have recently updated my electoral roll details with Experian as they held the incorrect information.

I also want to send my electoral roll details to the other 2 agencies.

Am I better sending this information first & then waiting a while before requesting my £2 report or would it be ok to do this at the same time?

In your experience, are they likely to update my electoral roll details & then send the report or just send the report immediately without the updated information?

Many thanks.

Rachael

Just thought I'd point out you cant update your electoral roll details at a credit bureau. ER is updated only once a year (some point in October) - at Experian anyway. You can query addresses associated with your credit file, but updates only come from credit institutions... think about it, if you can go round updating your details personally, redirection fraud would be rife!

As for getting your reports, prob best to wait till Nov when the ER update has been done.

Hope this clarifies how bureaux work in this respect.
DtMSM

danthemoneysavingman

woodthorpe82 wrote: »

Having read Martin's email regarding Capital One's 4% cashback card I thought I'll make use of that, especially with Christmas coming up. Just received a refusal letter saying our credit score was 'Low'. My husband and I are indignant as we have never been refused credit. We have no debt, apart from the mortgage and one credit card which is 0% (I am a bit of a credit tart). Otherwise we pay off our credit cards in full each month. Have just sent off for our credit reports from Experian, Callcredit and Equifax but am certain they are ok. Is it worth pursuing on principal or just accept that we would not make them any money?

I dont know, but the fact you're a tart ;-) would be obvious from your credit file, and CapOne may factor this info into their application scorecard(s) - though it would seem odd for a cashback card rather than a 0% card. I'd just accept it and move on. Your score may be considered 'low' if you've missed any mortgage payments ever - depends on what info CapOne are using.
Sorry if this isnt too helpful!

danthemoneysavingman

johnsons wrote: »

Hi,
my daughter and her boyfriend have had there credit rating forms sent to them most of there credit is 0 but there is one on there that is 8 and they
were told that this could not come of for another two years.This was with HSBC bank which they have been saving with so they could get a morgage
they went to the bank to see if this could now be removed but they have been told nothing can be done it has to run for another two years.They have been refused a morgage as first time buyers because of this.Even though this was paid up a long time ago and did not go to court.Is there anyway that this could be removed or has this to run for another 2 years?

Hi.
A CAIS 8/9 I assume you mean implies charged-off debt. A lot of lenders exclude anyone with such on their file as a policy rule, but a non-mainstream lender may well help - of course, the interest rates would be higher as your daughter/BF is clearly a credit risk - or at least has been. You cannot "get this removed" as it is a matter of fact, not an opinion. These stay on record for 6yrs - nothing you or anyone can do to change this, unless it does not reflect fact.

having savings and credit card there doesnt mean they're necessarily any more likely to lend to youf dtr/bf on a mortgage than anyone else.

the fact it is settled is also reflected in credit bureau info, but i've never found 'settled cais8/9' data at all predictive, so it would most likely be ignored.

hope this helps.
DtMSM

danthemoneysavingman

Avalon_Princess wrote: »

First timer with questions on credit score.

I have been unsuccesful on gaining an unscured loan of £25k to buy my own narrow boat to live on. I can not afford a mortage on my own and currently live in privately rented accommodation. I telephoned Lloyds who I have been with for over 19 years and they told me they could see no problems with my credit rating and offered me details of a company named PrivacyGuard who would submit me a credit report viz Experian for £1.00 through Lloyds. This I did and my score came back as 626 (0-1000) which is classed as Poor. I have no debt, no CCJ's, no credit card, single, no sibings and have moved 3 times during the last 5 years and do not have a land telephone line. I do 3 part time jobs with a gross income which would allow me a budget to pay £350.00 per month of a loan. So why am I being refused and only being offered loans with extortinate interest rates or loans where the monthly payments are £80-£90. I guess its the fact that all the factors isted above are ging against me. Any suggestions how to improve my situation apart from marrying someone who is a home owner, have a few kids, get into debt, take a credit card out and get a land line. I need a place of mine own to live - not much too ask is it? HELP!

Hi.
Having no credit history means lenders cant make an informed decision about you ability to repay credit (hence your score would be naturally low). Lending you £25K with no security and no credit history information would be a rather risky move from a lenders PoV. From what you say, you move regularly, meaning you're not "stable" in some eyes.

Things you can do

Landline not important.

Some spending on a low-limit credit card (which you could get) and paying it off in full every month would help give some idea that you can handle credit.

Also, see other posts on this forum and articles on this site for more info re. improving your rating.

I suggest best place to start is to speak to LTSB, who seem to think there's no prob with your rating. It is poss. they would lend you the money, or at least tell you why they can't in view of their previous statement.

Hope this helps you.
DtMSM

danthemoneysavingman

If ppl cant be bothered to thank me for at least trying to help them I dont think i'll be posting here any more

Tarebare

I am just checking through my credit reports having managed to go through a few years of good finance after being a poor student and not having a very good credit history. My first credit report looks reasonably good but there are 2 credit cards where I have "1 month" late payments back in 2001/2002. Since then, everything's been on time.
The company I'm checking at the moment say the scores will stay on my file until 6 years after the account has closed, which is good news for one of the cards as I closed it a while ago and it shoudl drop off my file middle of next year. Unfortunately, the credit card which I still have and use had 1 late payment on it in 2001. Is it worth getting rid of this card so that in 6 years it will be off my account? Or is it far enough in the past that it won't really matter anyway?
Thanks!

danthemoneysavingman

Tarebare wrote: »

I am just checking through my credit reports having managed to go through a few years of good finance after being a poor student and not having a very good credit history. My first credit report looks reasonably good but there are 2 credit cards where I have "1 month" late payments back in 2001/2002. Since then, everything's been on time.
The company I'm checking at the moment say the scores will stay on my file until 6 years after the account has closed, which is good news for one of the cards as I closed it a while ago and it shoudl drop off my file middle of next year. Unfortunately, the credit card which I still have and use had 1 late payment on it in 2001. Is it worth getting rid of this card so that in 6 years it will be off my account? Or is it far enough in the past that it won't really matter anyway?
Thanks!

no need to close it, it drops off after 6 yrs regardless of whether its open or closed- it just takes 6yrs