Credit Rating - Natwest !!!!-Up and Experian/Equifax

gypsymoth

Afternoon folks

Apologies in advance if this isnt the correct sub-forum - feel free to move the thread. A long story that I'll hopefully condense.

I currently have a mortgage with Natwest, and due to an administrative !!!! up in January, they didnt take my monthly payment. I called them in the first week of Jan and they assured me verbally that it wouldnt hit my credit file - as long as the payment was taken within the month of Jan, it would be fine. I didnt think anything more of it and the payment left my current account successfully on 16th Jan

I got a letter from 2 of my credit card providers in mid Feb saying that my APR would be going up once my 0% deals had expired. Didnt query this and thought it was due to banks tightening lending generally

I'm now attempting to buy a new house and have re-applied for a mortgage thru Woolwich. When I say 're-apply'... I unfortunately had TWO house purchases fall thru last year so this is a third attempt, using the same lender. Critically, Woolwich FAST-TRACKED me on both occasions in 2011

The issue: Woolwich have now declined to lend me the full amount because they 'spotted a missed Natwest mortgage payment' on my credit file. They view my file as poor - note, Woolwich use EXPERIAN

I immediately contacted Natwest and after several irate phone calls they admitted fault and sent me £60 compensation. More importantly they said they'd correct my credit file with EQUIFAX. The correction was made in early March - I got a report from Equifax before and after and the change is there

I pulled my EXPERIAN credit report from their website and my score is 695/999 = 'POOR'... The erroneous missed Natwest payment isnt there and my record of paying back cards spotless. I've called Experian to ask why the record is poor, and they attributed it to the high amount of unsecured debt I have. This is wrong - I only use 38% of my overall credit card facility across 8 cards. However, 2 of the cards are over 65% used and I recently applied for another 0% card (in Jan)

Woolwich rechecked my credit file again and still refuse to lend me the full amount, which is obviously very frustrating. I know there are people in far far worse financial dire straits and I'm thankful to be in the position I'm in however

I guess my key questions for the good people of the forum are these:

-- Natwest have written to me twice and sent me compensation but should I be pursuing them for some kind of written explanation or any further action, ie: writing to Experian? I want some definitive closure from them ideally

-- What should I do with regards to the credit cards that have had their APR hiked? Note that Natwest actually offered to pay for any hiked credit card repayments as a result of their mistake, but given I'm currently in a 0% period it's not a useful offer right now
.
-- My credit record is important to me, but how relevant is this 695 score? Experian explained that only ppl with scores of over 950 are classified as 'Excellent' and anyone under 700 is 'Poor'. Is it just a marketing rouse and a way of putting fear into people? Note there are no blemishes on my EQUIFAX report

-- Aside from having several cards - with only one used to approx 64% - what other factors would have caused my credit rating to deterioate?

Any help or advice appreciated - really dont want this Natwest !!!!-up to blight me for months / years!

Thanks, G

Gordon_Hose

You have 8 credit cards and wonder why they have an issue with the amount of unsecured debts you have?? lol

It matters not how much these cards are utilised, it's the fact you could go out tomorrow and max the lot out.

If any have a zero balance then close them. How much TOTAL credit do you have in relation to your wages? If your income is £30k, and you have >£15k (more than 50%) you'll struggle with things like mortgages.

Oh, and credit scores are worthless. Lenders do not view this when checking your files. Credit scores are just another way for rip-off credit file agencies to rob users of their cash.

steve1980

Your credit score means absolutely nothing. This is Experians score, not a lenders. The lender will have their own scoring system which is kept secret for obvious reasons.

The unsecured debt will be the total CREDIT LIMITS on each card. Add them all together and what do you get? If you have cards just sitting there doing nothing then really, you should close the accounts. This will make your used credit allowance drop and actually help you get a mortgage.

gypsymoth

Gordon_Hose wrote: »

You have 8 credit cards and wonder why they have an issue with the amount of unsecured debts you have?? lol

It matters not how much these cards are utilised, it's the fact you could go out tomorrow and max the lot out.

If any have a zero balance then close them. How much TOTAL credit do you have in relation to your wages? If your income is £30k, and you have >£15k (more than 50%) you'll struggle with things like mortgages.

Oh, and credit scores are worthless. Lenders do not view this when checking your files. Credit scores are just another way for rip-off credit file agencies to rob users of their cash.

Thanks

My income is thankfully sufficient to cover the entire total credit facility.
However, I understand that having the facility indicates I could in theory max it out on a whim

Perhaps I should read Martin's mailouts a bit more closely, but I was under the impression that closing accounts and having LESS credit cards makes you LESS likely to be given one in the future. The higher the facility = card companies more likely to lend to you.

Time to shut down a few I think....

If anyone can advise on how to deal with Natwest I'm keen to hear

cheers

gypsymoth

steve1980 wrote: »

Your credit score means absolutely nothing. This is Experians score, not a lenders. The lender will have their own scoring system which is kept secret for obvious reasons.

The unsecured debt will be the total CREDIT LIMITS on each card. Add them all together and what do you get? If you have cards just sitting there doing nothing then really, you should close the accounts. This will make your used credit allowance drop and actually help you get a mortgage.

Thanks Steve - I thought unsecured debt was the usage rather than the facility. Time to shut down a few....

steve1980

If Natwest have removed the missed payment and paid you compensation which you accepted then there's not alot more you can do.

Close some cards and try again in a couple of months if you can. Otherwise, ask for a letter of closure for your cards, take them to Barclays and ask if it can be manually checked.

Gordon_Hose

Close the unused cards down, check your credit file in a month or so to make sure they have been marked as settled/closed.

If Natwest have amended their error and given you compensation then leave it at that. Seems pointless chasing it any further.

Experian_company_representative

That's right, lenders will look at credit available, not just credit currently used.

James jones

backinbusiness

Experian_company_representative wrote: »

That's right, lenders will look at credit available, not just credit currently used.

Sorry OP to hijack your thread but I am still waiting for my email Mr Jones.

BiB

steve1980

Experian_company_representative wrote: »

That's right, lenders will look at credit available, not just credit currently used.

James jones

Why not confirm that the scores you provide FOR A FEE means absoutely nothing?

Gordon_Hose

steve1980 wrote: »

Why not confirm that the scores you provide FOR A FEE means absoutely nothing?

They'll never admit that lol