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

MissDee78

Hiya, I'm having major trouble with credit.

In 2005 I had trouble with money and defaulted on a couple of things and although I went to speak to HSBC to explain my situation, they informed me that they had closed my bank account without letting me know first. I got back into work and paid off my defaults by the end of 2005, but I still can't get credit, not even for a mobile phone contract.
I have had a basic bank account with Barclays for 18 months and they have tried to upgrade it but my credit score won't let them. I have also had a vanquis card, which I use and pay off in full every month, for about 16 months. vanquis have raised my credit limit twice in the past 6 months.

I don't owe anybody anything, and have a record of paying everything off, so how can I have these defaults removed from my Experian report? All I want is a current account!!? (I want a mortgage too but just want to get past this first!)

Thanks.

danthemoneysavingman

MissDee78 wrote: »

Hiya, I'm having major trouble with credit.

In 2005 I had trouble with money and defaulted on a couple of things and although I went to speak to HSBC to explain my situation, they informed me that they had closed my bank account without letting me know first. I got back into work and paid off my defaults by the end of 2005, but I still can't get credit, not even for a mobile phone contract...

You problem is likely to be the fact you defaulted at all - a lot of lenders exclude such applicants straight away by policy. The age of the default is relevant, though I couldn't guess whether anyone will lend you to you in light of this being on your file until 6 years after the event (when it falls off your report).
You cant get defaults removed from your report.
You can put a notice of correction on your report, which means you can't be rejected automatically by any bank as they have to review it manually. Though quite what to put in there I don't know... if you explain the defaults were due to an isolated one-off event, this may help, but a NOC has limited space (say 200 characters?!), which doesn't enable a full explanation really.

I dunno if any of this helps much but hope at least it clears up your understanding of whats going on.

DtMSM

mcc28_x

Hi,
I'm using the free trial at Experian to tidy up my credit report. Whilst everything looks okay, I have accumulated 20 years worth of accounts most of which are 'settled' as opposed to closed.

I am contacting any settled accounts to get them closed. Is it as simple as writing to the card company and stating that I want the account closed and that I want my credit report to show the account closed? Can I specify that they take this action within a reasonable timescale - say 30 days?

Cheers

Mark

TBeckett100

after 6 years of being settled they are supposed to drop off the report.

taless

Hi Mcc28_x,

I believe "Settled" means closed.

Zebedee69

MissDee78 wrote: »

Hiya, I'm having major trouble with credit.

In 2005 I had trouble with money and defaulted on a couple of things and although I went to speak to HSBC to explain my situation, they informed me that they had closed my bank account without letting me know first. I got back into work and paid off my defaults by the end of 2005, but I still can't get credit, not even for a mobile phone contract.
I have had a basic bank account with Barclays for 18 months and they have tried to upgrade it but my credit score won't let them. I have also had a vanquis card, which I use and pay off in full every month, for about 16 months. vanquis have raised my credit limit twice in the past 6 months.

I don't owe anybody anything, and have a record of paying everything off, so how can I have these defaults removed from my Experian report? All I want is a current account!!? (I want a mortgage too but just want to get past this first!)

Thanks.

If you go into the BR thread you can find details for basic accounts. These allows you to get money paid in from your employer and withdraw from cashpoints.

After you get this is a case of re-building your credit rating. You wont get anything at the moment with your current status so just get the bank account and maintain it for a few months.

MissDee78

Zebedee69 wrote: »

If you go into the BR thread you can find details for basic accounts. These allows you to get money paid in from your employer and withdraw from cashpoints.

After you get this is a case of re-building your credit rating. You wont get anything at the moment with your current status so just get the bank account and maintain it for a few months.

Hi Zebedee,

I have had a basic account since May 2006 - I get a fairly good salary paid in, I pay rent out and my credit card is paid off by direct debit every month.

I don't know what else I can do? I can't seem to get to the next step because the credit rating "says no"!

Zebedee69

Hello Miss Dee,

Have you got any credit account open at the moment. If not when was your last credit account closed?... Often people esp women who have come out of marriage tend to have problems because everything was in the husbands name and their name has no history.

Settled means the account is closed and all payments have been met without a problem. Thats good as long as the account shows lots of lovely green P's for your last 6/12 months of activity.

Is there anything on your report you dont understand? That might help us nail down whats going on.....

Fitzy-

Hi, i'm just looking for a quick bit of advice.

In April '07 I recieved a letter saying my Gas account had gone into Collections after not paying the Direct debit (long story). I paid it off the second I recieved this. Will this have affected my credit rating?

I've just been accepted for a Haifax student credit card so I assume it can't be that bad if it has - I'm just a bit concerned. I plan on getting my credit reports in a few months once I've used the card for a few months.

Also does being in your overdraft negatively affect you? I'm only talking maybe 6 weeks at £200 if that (and the occasional few days once or twice a month). What about bank charges?

Sorry for the basic questions.


Thanks

taless

Hi Flitzy, I'll try to answer your question.

You may be approved for your Halifax Student Credit Card solely because of your internal score with Halifax, as you have your current account with them. I have no experience with Halifax on credit cards, but my application for a credit card (non-student) with LTSB was approved without any external credit searches (does not show up on my credit reports).

So I would suggest that you do have a look at your credit report to check if the Gas account has reported anything about you or not, as the Halifax Credit Card success may/may not be the real indicator of how your credit report is like.

As for being in Overdraft, I don't think it will be a problem. In fact, some posters do suggest it's good to be in overdraft with your interest free OD as it gives you some credit history.

As for bank charges, I think it will mostly affect your internal (Halifax) credit score and not really with external credit referencing agencies as they are seldom reported (unless you consistently go above your approved OD for example)

Hope this helps.