Confused about credit file

raceAround126

I just got my credit files from Experian and Equifax. Mainly as I just got declined finance on a sofa.

Both have stated that I am rated red (i.e. poor) for finances.

I have no defaults, no CCJs. I have had the same job for 3 years and earn £35k per annum full time.

I do however have about £8500 in credit card debt across three cards, Santander, Tesco Bank and NatWest.

I can only guess this is the reason for the amazingly poor rating.

I am working on these and they will be gone in February, however I am worried I will have problems when I remortgage in March.

Any advice?

[Deleted User]

Just manage your finances correctly and ignore the scores.

Check you're on the electoral role, no unsavoury financial associates, etc.

Cycrow

£8500 isn't overly high for your salary, i assume theres not missed or late payments either ?

if the cards are all maxed out (or close to) so you have a high % used, that could be a potential problem.

but it doesn't sound like the credit file is really in a bad shape.

how old are these various credit accounts ?

InsideInsurance

raceAround126 wrote: »

Both have stated that I am rated red (i.e. poor) for finances.

I have no defaults, no CCJs. I have had the same job for 3 years and earn £35k per annum full time.

I do however have about £8500 in credit card debt across three cards, Santander, Tesco Bank and NatWest.

I can only guess this is the reason for the amazingly poor rating.

Job for 3 years and your income are not recorded by the CRAs and therefore not reflected in their scores.

As others will point out, their scores are fairly useless as they are seen by almost no one other than them and you. To any significant lender your history is exposed and the lender applies their own scoring/ rating rules on that data. Whilst there are commonalities - no one likes defaults - the exact "score" is unique to each organisation and potentially unique to each product.

Whilst you should ignore their score the CRAs normally do have pointers as to why they are scoring you lowly and you should check those points too. There can be other factors, such as perminately living in your overdraft, according to the records on the CRA, that can also be seen as a big negative to some but for some reason the CRAs dont tend to flag.

Experian_company_representative

We build scores for most lenders and use similar calculations to produce the guide score you can get. It's certainly worth looking at the pointers we provide alongside the score to help you work out what you might be able to do to build a better credit rating.

James

raceAround126

I did used to live in my overdraft up until about three years ago. I've always remained well into the black since 2010 or so.

I have no missed payments on anything as they go out direct debit days after my wages land in. My mortgage is always on time, never missed a payment, and I'm at £110k out of £170k borrowed.

I can't see any reason for it. Should I try applying for credit again?