When will my credit rating improve?

Jammin35

Hi,

I applied for a mortgage last year and was rejected by my bank. Bad credit rating.

I'm a high earner, had a big mortgage, lots of credit (tens of thousands). Never missed a payment.

In 2010 i got divorced and as a consequence of that, 4 mobile phone bills did not get paid for 3-4 months - purely due to bank accounts being split - i had moved out and mail wasn't passed on. No defaults were registered, no CCJ and debts were paid off. But my record shows four missed payments. That was in June 2010 - nearly 3 years ago. I've not missed anything before or since.

Between 2010 and now i moved house twice and didn't update the electoral roll.

I've now been on the electoral roll for seven months. All my existing credit is registered at the correct address.

Existing credit consists of a credit card with a £12k limit and "headroom" of £7k, another card with a £1k limit and nothing on it, two mobile phone contracts and a couple of utility bills.

I'd hoped to see some improvement by now, but it's been 12 months and still i am showing as "excellent" on the experian website, but as poor for callcredit and Equifax. I've checked records for all and they are accurate and only record those 4 problem accounts from 2.5 years ago.

Does anyone have any ideas?

Jimbo

Dave_Ham

Morning Jimbo,

Forget the scores and commentary from these credit reference agencies, they are rubbish.

Had someone yesterday ex bankrupt from 3 years ago, numerous defaults and scored excellent on both.

Effectively their algorithms are different and heavily weighted on factors the bank do not weight in the same way.

From what you have said and subject to deposit as a % of purchase price, I would expect you to be able to achieve a fair mortgage with a highstreet lender now. That said, do some research as some banks are more forgiving than others.

All the best

kingstreet

Please tell us what you plan to do.

Need a mortgage? What purchase price? What deposit?

With a reasonable deposit and only a few mobile phone late payments I would imagine you will find a few willing lenders.