Why is my credit score so bad?

bruciebounus

I have a terrible credit score and don't quite know why! Hopefully someone here will be able to help me and point me in the right direction to improve it! I know you shouldn't put any trust into these things, but credit score on noodle is low- 1/5.
Also tried to get a £5000 personal home inprovement loan recently and have been declined.

As a student I stupidly took out several overdrafts and credit cards, to the tune of £6000. I never defaulted on payments, sometimes had late payments though. For at least a year now I have had no missed payments and have managed to reduce my debt significantly (paid off around half so far and counting).

I managed to get a mortgage 2 years ago (although had a large deposit), but must have pretty bad credit to be unable to get a personal loan?

Quite happy to save for the home improvements if that is what it will take, but worried as my mortgage fix ends next year and want to be able to get a good new deal.

Any thoughts?

Tixy

Rather than the score/rating, what is actually showing on your credit report?

Are you on the electoral roll and does this show correctly on your credit files?
how many missed payments do you have showing on your files?

Are you financially associated with anyone else on your credit files (e.g. from a joint bank account or joint mortgage etc).

bruciebounus

Hi Tixy, thanks for the reply. In answer to your questions...

On credit score, all showing as green ok/up to date for at least 12 months on all accounts.

I am on the electoral register and have been for 2 years- all showing correctly.

No financial links with anyone!

Tixy

Potential lenders will see far more than the last 12 months payment history. Do you have lots of missed payments still visible on your report from longer ago than that?

1 year of making payments on time wouldn't necessarily mean a potential lender would ignore the previous 5years of lots of missed payments.

Stan_Smith

bruciebounus wrote: »

I have a terrible credit score and don't quite know why! Hopefully someone here will be able to help me and point me in the right direction to improve it! I know you shouldn't put any trust into these things, but credit score on noodle is low- 1/5.
Also tried to get a £5000 personal home inprovement loan recently and have been declined.

As a student I stupidly took out several overdrafts and credit cards, to the tune of £6000. I never defaulted on payments, sometimes had late payments though. For at least a year now I have had no missed payments and have managed to reduce my debt significantly (paid off around half so far and counting).

I managed to get a mortgage 2 years ago (although had a large deposit), but must have pretty bad credit to be unable to get a personal loan?

Quite happy to save for the home improvements if that is what it will take, but worried as my mortgage fix ends next year and want to be able to get a good new deal.

Any thoughts?

I am in a similar position.

Work full time, earn a decent salary and in the past have missed some payments however nothing in years.

I am on the electoral register and have a land line number.

I have some personal debt on credit cards and wanted a personal loan to move to a cheaper borrowing level.

I had a loan which I currently pay off each month and have £500 to pay in the next few months to finish it. Should end in Jan.

Also have a few crest cards that I wanted to move to a cheaper loan.

I noticed that one cRd was still registered at my parents address which was over 5 year ago. I assumed I changed but have not.

Any thoughts ?

My score does not seem to improve

You-kip

Stan_Smith wrote: »

I am in a similar position.

Work full time, earn a decent salary and in the past have missed some payments however nothing in years.

I am on the electoral register and have a land line number.

I have some personal debt on credit cards and wanted a personal loan to move to a cheaper borrowing level.

I had a loan which I currently pay off each month and have £500 to pay in the next few months to finish it. Should end in Jan.

Also have a few crest cards that I wanted to move to a cheaper loan.

I noticed that one cRd was still registered at my parents address which was over 5 year ago. I assumed I changed but have not.

Any thoughts ?

My score does not seem to improve

Your score with Experian is a worthless number ignore it.

The_Boss

bruciebounus wrote: »

Hi Tixy, thanks for the reply. In answer to your questions...

On credit score, all showing as green ok/up to date for at least 12 months on all accounts.

You don't have a credit score so need to get out of that mindset first. Tixy asked what was on your credit report.

As mentioned, lenders look at six years of data. You may also have been declined for the loan for affordability reasons (given your history and the fact you have a mortgage.

bruciebounus

The_Boss wrote: »

You don't have a credit score so need to get out of that mindset first. Tixy asked what was on your credit report.

As mentioned, lenders look at six years of data. You may also have been declined for the loan for affordability reasons (given your history and the fact you have a mortgage.

Hi, apologies for the wrong turn of phrase. By credit score I meant report. As previously stated everything is showing up as green/ok/up to date. I will have to assume it is previous late payments holding me back.

Do I have to wait 5 years for this to fall off my report to be eligible for a personal loan? My salary and outgoings support repayments, so I doubt it is eligbility criteria, has to be because of the historical late payments.

Tixy

If its the odd missed payment, e.g. just a few '1' markers visible on your file, then these are not likely to have a major impact.

If your file is littered with missed payments showing several months late (e.g. '3' and '4' markers) then these could be having an impact.

Have you checked your credit reports with the other 2 agencies as well?
It could be the place you applied to for a loan recently searched on of the other agencies and that there is some error or problem showing on one of them.

Stan_Smith

You-kip wrote: »

Your score with Experian is a worthless number ignore it.

Cheers.

Was wondering if I was best to clear the £500 on the loan then apply for a new loan early next year.

I did apply for a new balance transfer card an got rejected but my existing expensive cards have offered borrowing increases

Tixy

Stan_Smith wrote: »

Cheers.

Was wondering if I was best to clear the £500 on the loan then apply for a new loan early next year.

I did apply for a new balance transfer card an got rejected but my existing expensive cards have offered borrowing increases

Stan, welcome to the forum.

It would be better if you post a new thread of your own and then people can advise you on your situation specifically.

In terms of your chance of getting accepted for new credit it would help if you could also quantify your existing debts and also where you have applied and been declined by.