Credit rating

spicychap

Hi everybody,

I applied for a loan (1st time ever) today and only car giant would lend me money but with very high interest. My bank where I get paid a salary of about £1500.00 refused.

What I found out is that I am not registered on the electoral roll and I have some money (£300.00) I never paid from a cancelled car insurance 5 years ago.

Unfortunately, I have applied on-line using several companies between yesterday and today. I have just realised this was a bad idea after a bit of reading.

My question is if I pay off the £300.00 and register on the electoral roll (I have now filled the form). Can I reapply for the credit in say 3 months? Or would my credit rating still be bad?

I am asking because I just got a job with better pay and training opportunity, however, it is a must to be a car driver. Therefore, I want to buy a Toyota Prius for good economy.

Thank you all in advance for sharing your knowledge.

Regards

Tixy

Does the car insurance debt show as a default on your credit file?

Getting on the electoral roll is definitely a good idea if you want credit in the future.
Paying off the old defaulted debt will likely help a bit. It would then show as a settled default, which will still put some mainstream lenders off, but is likely to improve your chances of being accepted for credit.

spicychap

Hello Tixy,

I have just called Kwikfit and I was told my account with them was satisfactory. This has prompted me to pay for my credit report and here is what I found:

1. You are not on the Electoral Roll as a current occupant at your current address.

2. You have a significant number of recent searches on your credit report.

3. I have nine accounts and 8 of which are satisfactory and 1 default.

When I checked, it happened to be a Tmobile phone I collected on a cashback offer on the internet in 2007. The phone was posted to my address but I did the direct debit was not taken out at the end of the first month.

I called the customer service to explain but I was told they had a wrong address on file. I offered to pay but I was told they could not set up a direct debit on the phone.

Then I emailed Tmobile customer service and I was told to send a fax. I had no assess to a fax machine and every thing just seemed complicated. A week later I received a return to Tmobile envelope and posted the phone back and I never heard anything since then.

Below is my email to them:

Thanks for emailing, to let me know that your account hasn't been debited, and you've received no bills from us. I'm so sorry that we had the wrong address on your account, and that you're now thinking of stopping your contract. I can fully understand your concerns, and I realise that you need your phone.
After looking into this for you, I can see that we weren't able to take any payments, or set up a direct debit as our fraud team are looking into this account. This is due to the problems you had with your address.
I've spoken with our fraud team today and they will need you to fax a proof of address and a proof of identification. Once they've received this from you, your account will be activated again, and you'll be able to set up a direct debit.
Please fax these proofs, along with your mobile number and full name, to 01707 319062.
Once again, I'm so sorry for any inconvenience this may have caused.
Thanks again for taking the time to email me about this, and I'm sure you'll be able to use your phone without any further problems, very soon.
Please feel free to reply to my email if you have any other questions.
Kind regards


Kelly
Customer Services Email Team
T-Mobile




On 11/10/07 16:41, @yahoo.co.uk wrote:
[From .CO.UK]
message:Hello, I ordered a Tmobile phone with the mobile no 07507595283 after the first month I noticed my account was not debitted & I didn't receive any bill.
I called the customer service & I was told my address is 287 goodman park which is wrong because the phone was posted to my address at 285 Goodman park. I was also told that I have no direct debit set up, I tried to set it up but I was told I couldn't because of some investigations. I'll like to know what has happened as I might decide to stop the contract & get another because I can't do without a mobile phone for too long.,
< body>
T-Mobile (UK) Limited
Company Registered Number: 02382161
Registered Office Address: Hatfield Business Park, Hatfield, Hertfordshire, AL10 9BW
Registered in England and Wale

spicychap

Just another note, I apologise for the long story.

I just noticed that this appears on my credit rating "Your most recent defaulted/delinquent account is now considered to be less significant"

Does this mean I have more than 1? Or is this just because it has been such a long time?

Can I get this removed from my account name completely?

I just spoke to someone on Credit expert who said the debt has been sold to Provident Financial.

Tixy

A default stays on your file for 6 years from the date of default shown on the file.
The whole account and the default drop off after 6 years whether paid or unpaid at that time.

Tmobile would be able to remove the default if they agreed that you shouldn't have been defaulted and didn't have any debt due at that time. Whether that is the case isn't really clear from the emails you have posted. I guess it depends on what you did after that email.

If you had no further contact with them then it sounds like they think the contract is continuing and so therefore a debt would be due.

Getting a copy of your credit file can sometimes trigger a debt collector to start chasing a debt again. If provident get in touch then do not sign any agreement with them, do not agree to borrow the money from them to repay this debt (a particular 'trick' of providents).
If they write to you I'd start by sending the prove it letter template to see what the produce - Letter when you know nothing about about the debt - AKA "Prove it" letter

spicychap

Hello again and thanks for taking the time to reply.

After the email, I received a self addressed envelope and I posted the phone back. I have not heard anything from them since.

However, on the credit report, it says default date 10/05/2008 and account updated 13/01/2013.

Is it best to just leave it alone because my credit report said "Your most recent defaulted/delinquent account is now considered to be less significant"?

Should I contact them and pay it off?

Which of the two will remove this from my file please?

Thanks

Tixy

The entry will automatically drop off your file on 10/05/2014.

spicychap

Can it still affect my credit rating after it has dropped off?

Also, I was told my credit rating was poor because my highest credit is a £2000 credit card and I need to apply for a small loan and pay it back.

I will be applying for a mortgage in nearly 2 years time, if things work according to plan. Is it sensible to take a small loan just because I know I can cope and will this benefit my credit rating?

You must be thinking I am such a novice. I'm sorry and thank you, again.

Tixy

Can it still affect my credit rating after it has dropped off? NO

Also, I was told my credit rating was poor because my highest credit is a £2000 credit card and I need to apply for a small loan and pay it back. Who told you that? Neither of those 2 things are true. Its bad because you have an unpaid default and are not on the electoral roll.

I will be applying for a mortgage in nearly 2 years time, if things work according to plan. Is it sensible to take a small loan just because I know I can cope and will this benefit my credit rating? 2 years time the default will be gone.
Taking out loans won't particularly help your credit ratng, and will cost you. Better way of maintaining / building a good credit history is with a credit card. Use it each month and repay in full each month. That way you pay no interest and build up a positive credit history. The amount you spend isn't really important, a couple of small purchases is fine. Ideally don't spend more than 50% of the limit each month.

Any other credit accounts that appear on file (phones or whatever) ensure you always pay them all on time.
If you have an overdraft try not to live it in all the time, particularly as you get closer to wanting to get a mortgage.

_Andy_

"Also, I was told my credit rating was poor because my highest credit is a £2000 credit card and I need to apply for a small loan and pay it back. "

total nonsense.