Credit Rating after ID Fraud

mpppen

We are looking to remortgage our house and use the funds to buy another.

We are about to apply for a 60% LTV mortgage but then I received a bill in the post from O2 fora phone which I didn't order but which was fraudulently taken out in my name and there's a missed payment

I checked my credit rating and it's gone from very good to fair due to this missed payment.

I have explained this to O2 and Experian who are looking into it but have taken over a week and still nothing is happening.

How can I get this one missing payment expunged from my account as I have to get my application in.

I don't know whether a 'fair' credit rating is good or bad enough to affect the application (my wife's is currently listed as excellent).

Any advice on what to do would be appreciated.

PEN.

PS. It appears my rating has also decreased as I opened a new bank account in April. I only opened it to take advantage of Santander's 321 account and it's 3% return and put £20k into it. That, apparently, is a bad thing.

The_Boss

mpppen wrote: »

I checked my credit rating and it's gone from very good to fair due to this missed payment.

I have explained this to O2 and Experian who are looking into it but have taken over a week and still nothing is happening.

How can I get this one missing payment expunged from my account as I have to get my application in.

I don't know whether a 'fair' credit rating is good or bad enough to affect the application (my wife's is currently listed as excellent).

Any advice on what to do would be appreciated.

PEN.

PS. It appears my rating has also decreased as I opened a new bank account in April. I only opened it to take advantage of Santander's 321 account and it's 3% return and put £20k into it. That, apparently, is a bad thing.

You do not have a credit rating.

How did you contact O2/Experian? Best for it to be in writing. A week isn't that long a period to have passed anyway so chances are they are still investigating.

Did you ask O2 how the account was started/set up? Did you request a notice of correction with Experian? You will likely have to do the same with Equifax too.

mpppen

Hi,

I checked my credit score with Experian (paying £14.99) for the privilege.

I have phoned both O2 and Experian to explain this isn't my phone nor my account.

I haven't asked for a notice of correction but can do if that will help?

The_Boss

mpppen wrote: »

Hi,

I checked my credit score with Experian (paying £14.99) for the privilege.

I have phoned both O2 and Experian to explain this isn't my phone nor my account.

I haven't asked for a notice of correction but can do if that will help?

Yeah, if you need to file the mortgage application in the immediate future then register these with Experian and Equifax. The mortgage applicstion will go to an underwriter who will be able to see this.

Sometimes it's not advisable to file these if the credit file is likely to be amended quickly (since they can hold up instant decision applications) but since an underwriter will see the application anyway then you may as well.

mpppen

Thanks Boss.

I'm interested in your strapline.

can you please elucidate or point me to where it explains what you mean about Experian etc and the pointlessness of paying them. How do lenders assess you then?

Thanks!

The_Boss

mpppen wrote: »

Thanks Boss.

I'm interested in your strapline.

can you please elucidate or point me to where it explains what you mean about Experian etc and the pointlessness of paying them. How do lenders assess you then?

Thanks!

No problem!

Lenders assess you using data from the credit reports but also data that you declare in your application form. A key example of this is your salary (how else are you going to repay afterall?) and time with current employer (you are less of a risk if you have been in your job for a long time compared to someone still in a probation period who could be dismissed with less notice). Some lenders are also interested in other things such as marital status (indicates stability), time with current bank and other items that are NOT recorded on your Experian, Equifax or Noddle credit reports that don't immediately spring to mind.

Each lender will score you based on the data in your report (but not the Experian/Equifax/Noddle score) and the data on your application form. Different lenders and different financial products (e.g. loans, credit cards, mortgages) will weight this data differently, placing more emphasis on items depending on the lender's policy or type of product. They may also use data they currently hold about you if you already have a financial product with them (which some lenders may refer to as their 'internal credit score').

So as you can see, Experian/Equifax/Noddle may think that their credit scores have value, but then they would since they are a nice little earner for them. All they do is waste money and cause confusion, particularly as so many people still believe they have a fixed credit score and don't seem to be able to differentiate between a credit report and a credit score.

You should still check your Experian/Equifax/Noddle credit reports at least once a year to ensure there are no errors, but this can be done for the £2 statutory report and not necessarily with their £15 a month product that they will try to persuade people that they need.

mpppen

Interesting stuff, thanks.

The_Boss

No problem - hope it was of use.