Credit scoring issues

kmaccormack

Hi there I wonder if you can help.....this is my financial situation, and I am not sure how to proceed...

Bank Accounts-

Santander- balance £250 (main current acc)
Natwest ISA- £1030
Natwest e-savings £225
Barclays Overdraft (from being a student) - -£1600


Capital One credit card- balance £1560 (limit £1600)
Defaulted Black Horse Loan balance £9500 Arrears £6500- paying £130 a month to debt collection agency.


I have tried to apply for a balance transfer credit card, but was declined, applied to natwest as thats where my money is, not sure if this is good logic.

My credit score accoring to equifax is 268, satisfactory, however it shows I am not on the elctoral roll, however I am, and get local election polling card through etc...I have contacted equifax about this in January and still it is not appearing on credit record.?????

I have my name on the council tax bill, but not on any of the utilities, should I put my name on the gas/elec/water etc....does it help??

I have a mortgaged property with my ex-husband which he lives in and pays the mortgage on, and there have been no missed payments. My current partner has no mortgage the house is owned outright, I am not on the deeds etc. So as far as my current address goes, there is no negative credit at the address at all, and no credit card balances for partner.

How do I improve my credit score? I cant clear the black horse defaulted loan.....sick of paying it, it's going to take a lifetime! I dont think I could get a loan to clear it off, or whether it would be a good idea anyway!

Suggestions please....

Thank you

K

kmaccormack

sorry credit score is 368 not 268.

kmaccormack

Credit History Summary
Number of credit accounts (including those settled)30
Amount of available credit (excluding mortgages) £1,423
% of your total credit being used (excluding mortgages) 69%
Amount of outstanding debt (excluding mortgages) £9,459
Number of accounts overdue 0
Number of missed or late repayments in the last year 0


I have not got 30 accounts...do closed accounts remain on your file???

southportguy

Hi
I am in the same position of checking my credit score with equifax is 324.... which is poor.
Mine will improve as one reason for the bad score falls off the records next month and the other damning bit which is a default is being removed for wrongly being put on my account. I have the letter stating this will be removed this week by the company that wrongly blackened my score.
After that i am hoping it will go up to around 700 but for now it is 324 which is described by equifax as 'poor'
Your score falls roughly into the same score bracket and as such you will struggle.

I think, for me anyway, the low score I knew i had gave me no other option but to face my debts and start paying them off. Plus, no chance of taking another credit card or loan.

And as for transferring your debt to an interest free or very low interest charge credit card this will be a hard thing to do as in the eyes of the lender we are a bad risk and will only ever be offered rubbish transfer rates.

matttye

First of all please don't pay any attention to Equifax/Experian credit scores. They shouldn't be used as anything more than a very rough guide. A lender will have their own criteria for lending to you and will take into account your credit history as well as your income.

Did Equifax say why the fact that you're on the electoral roll is not showing on your credit report?

Putting your name on the utilities probably won't help much unless said utility companies report to credit reference agencies. If they do, then it will be more up to date accounts on your credit files, which is always useful.

kmaccormack

Thank you, equifax rambled on about updating things etc.....and it still hasnt shown up, but i just checked experian and I am on electoral role on theirs.

Also, I have 30 accounts and 17 are settled, but does that adversely affect it?

matttye

kmaccormack wrote: »

Thank you, equifax rambled on about updating things etc.....and it still hasnt shown up, but i just checked experian and I am on electoral role on theirs.

Also, I have 30 accounts and 17 are settled, but does that adversely affect it?

Nope, a settled account is a positive thing. Negatives are arrangement to pay markers, defaults, late payments, CCJ's.

kmaccormack

thanks...tried to get an aqua cred card, declined....but honestly i just do not get why, my payment history is good etc, and the arrangement i have with my defaulting loan is always paid on time, in fact I am a pretty good borrower all told.

matttye

kmaccormack wrote: »

thanks...tried to get an aqua cred card, declined....but honestly i just do not get why, my payment history is good etc, and the arrangement i have with my defaulting loan is always paid on time, in fact I am a pretty good borrower all told.

The arrangement with your defaulted loan won't show up on your credit report, other than that the balance is getting lower each month. It won't show up as 'up to date' or anything like that; it will still show up as default.

I got declined for an Aqua credit card but accepted for a Capital One credit card.

Vikipollard

But the trouble is you arent a good repayer, as you have a defaulted loan.

The electoral roll thing is a problem, but should be sorted by the sounds of things.

The default will be a problem. When did you default? You say you have an arrangement to pay, but that's a negative marker too.

What is your salary? From your post above, you have £9459 debt at present, plus £1423 available credit so affordability has to be a factor for any new credit which you are offered. I believe the ballpark figure is 50% debt to salary ratio, so (adding the two above together) £10882 credit already. If you earn less than £22k, you are already at the 50% mark.

I think I'd focus on paying off the defaulted loan faster. Not sure the ISA money would not be better spent on repaying the £6,500 you are in default for, but that's just me.

matttye

Vikipollard wrote: »

But the trouble is you arent a good repayer, as you have a defaulted loan.

The electoral roll thing is a problem, but should be sorted by the sounds of things.

The default will be a problem. When did you default? You say you have an arrangement to pay, but that's a negative marker too.

What is your salary? From your post above, you have £9459 debt at present, plus £1423 available credit so affordability has to be a factor for any new credit which you are offered. I believe the ballpark figure is 50% debt to salary ratio, so (adding the two above together) £10882 credit already. If you earn less than £22k, you are already at the 50% mark.

I think I'd focus on paying off the defaulted loan faster. Not sure the ISA money would not be better spent on repaying the £6,500 you are in default for, but that's just me.

£1k is not an unreasonable amount to keep back for emergencies, I wouldn't suggest she uses all savings to reduce the debt. That's when someone might use credit again instead, which isn't such a good idea!