Poor Credit Rating - what can be done?

diddyb

Hi,

I applied to switch to one of the Natwest deals featured on MSE last weekend and yesterday received a letter rejecting my application.

So today I ran a credit check with CreditExpert and I'm told I have a 'Very Poor' rating. I have only six credit items detailed including two (one cancelled) phone contracts, an expired Natwest CC (paid off in full), my current account, my Barclaycard (£2500 balance with £100 paid by DD on time every month) and... an Open University credit agreement it shows I have defaulted on.

In Feb 2011 I registered for an OU course, applying to pay the £450 fees by the OUSBA credit agreement. Within two weeks of the course beginning, changes in my work circumstances required me to drop out. There then followed lots off faffing around whilst they decided whether or not I was liable for fees or whether I could suspend my studies to restart the module at the next available opportunity. I made the first two repayments to cover the materials issued to me and the time that I had been enrolled on the course and then stopped, whilst requesting that the agreement be suspended in light of the fact that I had not actually received the tuition now being paid for. Until, in September, I received a letter saying that I was liable for the full outstanding amount of £300 or so. I telephoned and they confirmed that this was so, as outlined in the Credit Agreement, which it was. I paid up in full and thought the issue done.

Now, however, I've checked my credit rating for the first time and I have this default which is seriously affecting my prospects of securing credit. Is there anything I can do?

stephane_2

You could appeal to them & see if they would remove the default but if they refuse there isn't much you can do. The default will seriously affect your possibilities of getting new credit until the default is at Lear 4 to 5 years old.

jamesd

If it is showing default instead of fully satisfied you should ask the creditor to update the credit report to show that it is fully satisfied.

There may also be some additional corrections needed to the monthly reports before you made the last payment if they show you as being in arrears instead of an unspecified state while they decided how to handle it.

diddyb

That's really helpful advice, especially Re contacting the creditor, thanks! I'll do so tomorrow and report back as to how I got on.

blacksta

As mentioned already , you could contact OU and ask them to remove the default, Even if it is marked as settled it will hamper any chance of getting mainstream lenders. Same happened to me and i had to wait about 4 to 6 years for the thing to fall off my record.