Credit rating help so confused

ednamay78

Hi I have been out of debt now for over a year, however I have one on there that was defaulted and now on there until next year.

With equifax my credit rating 4 months ago was good and going up nicely, now it as taken a nose dive, credit agreements are on the green and now the electoral role os on the red as we have moved. Rating with them went up slightly last Thursday to 340 and tonight down to 307

I have been on to the council and changed this so that me and my husband are on the electoral by the beginning of March

Experian still shows the defaulted payment and showing red and the credit rating is 855.

The debt I defaulted on was from avon cosmetics, paid in full last year and since then been working again for them and paid in full every month but the accounts are not connected.

My biggest problem is we have the right to buy the property that we live in with a £61.000 money off and at the moment unable to get a mortgage and not even going to try until it as gone up, managed to get another 2 months but really worried that still will not be sorted.

Hope this makes sense
Thank you in advance

Angry_Bear

The actual credit score as given by experian etc. is completely useless, banks have their own way of scoring. Ignore the score and just look at the details.

Being on the electoral role will have a big impact - although I'm not sure if this is as true with mortgages, after all - they will know where you live .

The big problem will be the default, along with any missed payments. Make sure your default shows as "settled". I'm not sure if you're restricted on lender with a right-to-buy, but otherwise you might be able to get a mortgage if you have a decent broker (given the age of the default).

Ask around the mortgage forum and one of them will likely have a better idea.

Tixy

If the council will have you on the electoral roll from 1 march, this won't appear on your credit file for maybe 4weeks after that, could be longer.

Does the default show as satisfied on both files?
So is the default 5years old? and a fairly small amount? - this won't be as bad as recent defaults or larger defaults in terms of being accepted for a mortgage.

Don't get too focussed on the score the credit reference agencies sell and it going up or down by a few points, what is important is the raw data on the file as that it what a potential lender will see.

You say at the moment you are unable to get a mortgage? have you been to a mortgage broker with copies of your files and discussed it with them?

ednamay78

It was £300 I have been in touch with Avon and asked whether it could be taken off

I also cancelled my BT account and now that is on there with a couple of late payment

Not been to any broker yet was hoping to go with nationwide as they were offering us the full amount needed at a fixed rate that is £30 more than our rent per month

ednamay78

It also does show as settled

Experian_company_representative

It's true that the scores you can get from the credit reference agencies are only a guide - lenders use a wider selection of data in their scores, for a start - but to most people this guidance is very useful. The logic Experian uses in this credit score is based on the logic used in the scorecards we build for many high street lenders. So it should be a very realistic indication of how a typical lender would rate your credit report data. But the scores you can get are never going to be definitive. For a start, for data protection reasons they're not allowed to take account of data on any credit reports linked to yours (your partner's for example). Lenders' scores do usually look at this. But as I said, that doesn't alter the fact that the score you can get will give you a very good idea as to the current state of your credit history, limitations aside.

James Jones