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

joker3001us

This is what Amazon.co.uk (Halifax Card Services) did to my credit rating over 60p and alongside this my niavety!

I took out an amazon.co.uk credit card in early 2007.
I phoned them around mid 2007 to close the account stating work out the interest and everything let me pay the balance now.
I paid the amount stated over the phone and cancelled my direct debit.
The following month I got a charge on my credit card for less than 1 pound, around 60p in interest! I ignored the letter thinking it was an error.
The following month I was fined £9 making my total £9.60 (again foolishly I ignored the letter).
Month 2 another statement for a total of £9.60, NOTE they did not fine me again.
Month 3 another statement for a total of £9.60, NOTE they did not fine me again.
Month 4 another statement for a total of £9.60, NOTE they did not fine me again.
Month 5 they wrote the debt off after putting 4 missed payments on my credit score.
I have been denied credit cards for a couple of times because of this 60p. Note I think they did not default the account!

I contacted them and they will not do anything to rectify the situation, it is a statement of fact they say! The system is joke and has not idea over magnitude of debt!

Note at the moment I have 3 mobile phone contracts, 2 credit cards, 1 mortgage on my name and pay over 1500 a month to these yet they no longer hold value on my credit rating, all because amazon.co.uk (Halifax Card Services) can not understand the simple instruction!

They are a world to their own!


Below is what my credit score says for this account, everything else is ok, do you guys (and gals) know of a way to recify this situation.

Entry Number: C4
Name and address: XXX
Date of birth:XX
Company name:HALIFAX CARD SERVICES
Account type:Credit Card / Store Card
Started:05/01/2007
Current Balance:Settled
Credit Limit:£4,650
Settled On:10/10/2007
File updated for period to:09/12/2007
Status History: (brackets indicate most recent status) [0] 4 3 2 1 0 1 0 0 0 0

Summary of Payment History:In last 11 months, number of status 1-2 is: 3 number of status 3+ is: 2

Your score is: 684 on a scale of 0-1000

Is there anything I can do to fix this or should I just keep quite and wait it out? Halifax said I can have a note put on the account (through the credit agencies) but I do not know what to put on there! It only worries me from a remortgaging point of view which I will have to do in Sept 08? Will my score be ok by then because Experian have it listed as 684 which is apparently poor!

jimbo26

Unfortunately joker3001us not much you can do, as what is recorded is true and accurate. You could try appealing to their human side (yeah right) and ask them to consider removing it due to the circumstances. Keep pestering them I have found banks in particular get fed up with keep replying to letters and sometimes give in for an easy life.

joker3001us

One thing I was thinking of was to ask them if i could re-open the account. That way I could build up some 0's on top of the missed payment? An option?


r,
J

danthemoneysavingman

joker3001us wrote: »

One thing I was thinking of was to ask them if i could re-open the account. That way I could build up some 0's on top of the missed payment? An option?

Dont bother, it wont change the fact the 3 and 4 are there.
Adding a notice of correction about this 60p may help as it has to be reviewed before a lending decision can be made. They would then at least look at the details to ratify your claim (perhaps).

Lesson is, dont ignore letters. If you think they've made a mistake, call them & query it - otherwise this sort of thing can (and clearly does) happen.

danthemoneysavingman

sebbelcher wrote: »

2. I'm not on the electoral role [where I live]. ...how long does it take to reflect in my credit score?

This is the main reason you'll be rejected by new lenders.
The records of electoral roll at the bureaux have in previous years only ever been updated once a year, around mid-October. Which is unfortunate due to the timing of your enquiry! Try supplying proofs of address with your app if that's an option.

sebbelcher wrote:

4. I missed a few credit card payments whilst struggling as a student... I haven't missed a payment in the last two years

Depends how many payments in a row you missed - if it went 3+ that'll be a problem (probably).

sebbelcher wrote:

Should I close the account?

Won't make any difference to anything - I'd keep it if you need credit & are having trouble getting it. borrow responsibly blah blah blah

sebbelcher wrote:

6. ...the 'Payment History' is showing "UUUUU"...

This doesn't mean anything. If there's no info provided on your account, it can't be seen as bad.

sebbelcher wrote:

7. According to my credit file I have two credit cards with the same company. I don't!

If one isn't showing as status "settled", then as 'inmypocketnottheirs' said. Otherwise, it is actually closed.

jimbo26

sebbelcher contact your local council they may use rolling registration, allowing you to get your name on the electoral roll quicker.

sriwic

Hi,
I recently moved houses, and forgot to change my address on a store card that I rarely use. Unfortunately this has had a balance of £40 and I wasn't aware until they got in touch about 5 months later, and I paid £72 immediately, including late payment charges.
However, I realize that this has created a black mark on my credit file, since I recently got rejected on an application to open a bank account (this wasn't even an application for credit). Could someone advise me if there is anything I can do to help the situation. Apart from this, I haven't had any problems with any other payments or credits.
Thanks in advance.
sri.

chappers

inmypocketnottheirs wrote: »

A combination of factors here.

A default notice is as bad as a CCJ. Once a default notice has been issued it stays on your file for six years from when issued. A default notice basically makes you a financial leper. .

Says who all depends on whether it's settled or not, I took out 2 mortgages (both prime rate) and another credit card with a settled default from Capital One(shouldn't have actually been there but thats another matter)

pixieontour

hi im new to all of this the problem is im 23 and only in last 6months got on electrol register
i have moved 3times in the last 5 years and have been backpacking for a year over seas
i have never had loan of any sort
never had over draft
never had credit cards
because i have NO credit history i cant get ANY credit not even a £50 overdraft from my bank
even tho i have a regular income

however my bank have said in order to get a better credit rating i should get a store card(s)
do you think this is a good idea and how asy is it to get them and how long before i can apply for a credit card?
anyone with any advice?

CannyJock

Call me cynical, but I just automatically assume any advice a bank gives me is wrong. Good to see the bank helping you out. No wait a minute, they only help themselves, that's right.

Try the Money Supermarket website:

http://www.moneysupermarket.com/cards/credit_card.asp

Fill in their Smart Search option and they'll rank credit card providers. You should be able to find a provider who will deal with "risky" account ratings.

If you can find one that doesn't charge an annual fee then that's a bonus.

Advice would be to buy something on the card (like a newspaper), something ridulously cheap. Then pay it in full each month. That'll put a green light in your credit file for that month.

Repeat this for 6 months. At the end of it, try again and hopefully you'll be more successful.