What is the problem with my Credit "rating"

locotoro

I want to pin point what exactly is the problem on my Credit report as I have been considered to have poor credit for as long as I can remember and the misinformation by the credit agencies/banks in what affects credit score leaves me confused.

I had some serious debt problems and many missed payments just over 4 years ago - although no CCJs or defaults as I managed to pay them off slowly.

For the last 4 years my record has been good with 2 single payments missed in January 2011 (this was a banking error which I was unable to have removed).

I currently have a credit card with about 80% in debt and 2 overdrafts which are also about 90% in although money is constantly going in and out of those accounts. I also recently had another credit card (small limit which I paid off in full every month) which i have now recently closed. Finally a personal fixed interest loan that I've been paying for about 3 years without problem.

Now I can see that i am in credit and OD a lot of the time but I would like to know whether this has such a bad effect on the rating as everything else (except as discussed above) seems fine?

Am I right in thinking its the OD use that has brought me down?


NB: On the electoral Role, my wife is the homeowner for our property as we only needed to put one person on the mortgage (and her credit is better than mine), and employed with a very good salary.

tinkerbell28

Your credit score is irrelevant, it is the data.

Which won't paint a good picture, as correct me if i'm wrong. 4 years ago you had serious debt problems (will still be on your file). Two very recent missed payments, why can't these be removed? If it is their error they have to remove them. Then you are quite heavily in debt on your o/d and credit card and to boot have a loan. It makes you look high risk and over indebted.

The_Boss

Also usng up a lot of your credit doesn't look good (if I have read your post correctly this is also the case).

What's your salary and how long have you been in your job?

Thrugelmir

locotoro wrote: »

I want to pin point what exactly is the problem on my Credit report as I have been considered to have poor credit for as long as I can remember and the misinformation by the credit agencies/banks in what affects credit score leaves me confused.

From a lenders perspective the issue is the way you manage your personal financial issues. The fact that you make payments on time has no relevance. It's your usage of credit which is the issue.

The world is becoming an increasingly tougher place to obtain credit. As proper bankers have regained control over the asylum. There's no longer the desire on their part to dispense credit like confetti.

locotoro

tinkerbell28 wrote: »

Your credit score is irrelevant, it is the data.

Which won't paint a good picture, as correct me if i'm wrong. 4 years ago you had serious debt problems (will still be on your file). Two very recent missed payments, why can't these be removed? If it is their error they have to remove them. Then you are quite heavily in debt on your o/d and credit card and to boot have a loan. It makes you look high risk and over indebted.

Essentially the error was a "my word against their's" scenario in changing payment dates. I went abroad for 7 weeks and came back to find two reminder letters for late payments when I called up I was advised that the payments had been made 2 days after the due date as per their automatic system. When I disputed the date had been changed they said they had no record of my call. Put in a compland they rejected it on the grounds that although there was a call they had no evidence that I had given them the new instructions although they offered me a refund on the charges as a goodwill gesture.

I never pursued it from that point as I never got around to it

izools

Negative points:

High credit utilization
Multiple forms of credit in use
Prior missed payments within last 36 months

If, for example, you owed the same as you do now, but it was all on just one credit card, and the limit was twice as much as the balance, but you had no loan and never used any overdrafts, you would be much more appealing to a lender.

It's the using all forms of credit available to you and (near enough) maxing them out that is causing the issues.

locotoro

The_Boss wrote: »

Also usng up a lot of your credit doesn't look good (if I have read your post correctly this is also the case).

What's your salary and how long have you been in your job?

Yes, I have been in my OD for the better part of 6 years so this is the big thing (as I now know) that is playing against me. My salary is around 55k and I have been in my job for the last 2 and half years although i haven't earnt what I'm earning now until about 8 months or so.

Does the salary play a big part in the in the credit rating (rather than the bank rating?) Are these two connected?

locotoro

izools wrote: »

Negative points:

High credit utilization
Multiple forms of credit in use
Prior missed payments within last 36 months

If, for example, you owed the same as you do now, but it was all on just one credit card, and the limit was twice as much as the balance, but you had no loan and never used any overdrafts, you would be much more appealing to a lender.

It's the using all forms of credit available to you and (near enough) maxing them out that is causing the issues.

Yes, this is a fair reflection of the situation.

I had more cards and the balances were more evenly spread but I'm trying to close them down slowly so I slowly shifted my spending more on one and paying of and closing the others. I'm hoping to do the same again - shift my CC balance on to my OD and close my CC.

Is it better to use a OD or a CC? Aside from the monthly fees do both affect the credit status in equal measure?

DCFC79

locotoro wrote: »

Yes, I have been in my OD for the better part of 6 years so this is the big thing (as I now know) that is playing against me. My salary is around 55k and I have been in my job for the last 2 and half years although i haven't earnt what I'm earning now until about 8 months or so.

Does the salary play a big part in the in the credit rating (rather than the bank rating?) Are these two connected?

No the 2 aren't connected at all since nothing about your job is listed on your report.

Its only relevant when applying for loans.

Cycrow

locotoro wrote: »

Is it better to use a OD or a CC? Aside from the monthly fees do both affect the credit status in equal measure?

This very much depends on the lender.
every lender have different criteria to what they look for on the file.
Some might be put of my an OD, others might not mind it.

but i would say the CC would be the better of the 2 to keep. The OD could be withdrawn, causing you more problems.
Also how much is the OD actually costing you, and how does that compare to the CC, as you want to be clearing of the more expensive debt first. If they are about the same, then i would clear of the OD first

~Beanie~

locotoro wrote: »

NB: On the electoral Role, my wife is the homeowner for our property as we only needed to put one person on the mortgage (and her credit is better than mine), and employed with a very good salary.

Electoral roll doesn't ask who is the property owner, only who lives there and is eligible to vote. Are you on the electoral roll?