Help interpreting the credit file

Non_compos_mentis

Hi guys,

I was wondering if you could share your pearls of wisdom and help me interpret my credit file. I know every lender makes their own decisions but I have no idea what to make of my credit file.

A bit of background, a few years ago I was a bit naive and disorganised so missed a few payments on one particular card (HSBC credit card) which has been closed but the 6 years are not up so it is still showing on my file. Apart from that, despite being at the same address for the last 10 years, I never bothered to be on electoral register till recently.

The details on my equifax file is as follows:

• Financial associates: No data
• Electoral Roll: 1 year
• Credit information: see below
• Court Information: No data
• Notice of Correction: No data
• Previous Searches: Table 1 - 2 searches (07/07/13 and 28/02/13), Table 2 - 12 searches (majority being to request credit reports and Identity Check to comply with Anti Money Laundering Regulations)
• Gone Away Records: No data
• CIFAS: No data

Credit history

AMEX Charge card (closed)
Start date: 10/02/2011
Settled date: 10/12/2012
Payment history: No late payments

Barclays - current account 1 (open)
Start date: 16/05/2009
Overdraft limit £3,520
Overdraft usage: fairly regular
Payment history / exceeded overdraft: No late payments and overdraft not exceeded

Barclays - current account 2 (open)
Start date: 08/04/13
No overdraft
Payment history / unauthorised overdraft: No

Barclays loan 1 (closed)
Start date: 10/03/2011
Settlement date: 09/08/2011
Terms: £373pm for 24 months
Payment history: No late payments

Barlcays loan 2 (closed)
Start date: 06/06/2012
Settlement date: 06/11/2012
Terms: £291pm for 48 months
Payment history: No late payments

Barclaycard 1 (open)
Start date: 26/02/2010
Credit limit: £10,200
Balance: £9,061
Promotional rate: Yes
Minimum payment marker: No
Payment history: No late payments

Barclaycard 2 (open)
Start date: 24/08/2012
Credit limit: £2,000
Balance: £1,598
Promotional rate: Yes
Minimum payment marker: No
Payment history: No late payments

Capital one (open)
Start date: 29/06/2011
Credit limit: £1,100
Balance: £37
Promotional rate: No
Repayment: Paid in full
Payment history: No late payments
Cash advances: a few in the last 12-18 months

HSBC (closed):
Start date: 18/10/2005
Settled date: 29/05/2009
Credit limit: £500
Balance: 0
Payment history: 5 late payments in 2007 (May to July and then October to November), 9 late payments in 2008 (March to July and then October to December)

MBNA (open)
Start date: 13/04/2011
Credit limit: £5,600
Balance: £4,560
Promotional rate: Yes
Minimum payment marker: No
Payment history: No late payments

Natwest - current account (open)
Start date: 08/06/2005
Overdraft limit £1,000
Overdraft usage: fairly regular
Payment history / exceeded overdraft: No late payments and overdraft not exceeded

Natwest CC 1 (open)
Start date: 13/04/2011
Credit limit: £3,050
Balance: £2,789
Promotional rate: Yes
Minimum payment marker: No
Payment history: No late payments


Natwest CC 2 (open)
Start date: 08/05/2010
Credit limit: £1,250
Balance: £1,014
Promotional rate: Yes
Minimum payment marker: No
Payment history: No late payments

Nationwide - current account (open)
Start date: 08/04/13
No overdraft
Payment history / unauthorised overdraft: No

Natwest loan 1 (closed)
Start date: 31/03/2008
Settlement date: 09/04/2009
Terms: £95pm for 36 months
Payment history: No late payments

Natwest loan 2 (open)
Start date: 12/01/2012
Settlement date: Due to be repaid next month
Terms: £371pm for 24 months
Payment history: No late payments

Notes

1. The balances are a couple of months out of date
2. I have used some of the credit cards (Barclaycard / Natwest) and the AMEX charge card for cash advances in the last 2-3 years (pre-promotional rate). However, I have always paid it off in full.
3. I have used MBNA / Natwest for money transfer (on a promotional rate)

Non_compos_mentis

Can anyone help?

happy_bunny_2

What's your question?

I can't see anything in the credit information section of you post? Is it supposed to be a picture? Maybe my mobile device...

Late payments tend to have less impact the later they are and if the account is closed. Over 3 years and likely they will only impact a mortgage application.

Non_compos_mentis

Thanks HB,

Sorry I didn't realise the pictures cannot be viewed, I will try to summarise the information here.

In a nutshell, the questions are:

1. How much impact will the late payments have? and
2. Concrete steps I can take to improve the credit file. I am in the process of deleveraging pretty quickly.

Thanks,
NCM

Credit history

AMEX Charge card (closed)
Start date: 10/02/2011
Settled date: 10/12/2012
Payment history: No late payments

Barclays - current account 1 (open)
Start date: 16/05/2009
Overdraft limit £3,520
Overdraft usage: fairly regular
Payment history / exceeded overdraft: No late payments and overdraft not exceeded

Barclays - current account 2 (open)
Start date: 08/04/13
No overdraft
Payment history / unauthorised overdraft: No

Barclays loan 1 (closed)
Start date: 10/03/2011
Settlement date: 09/08/2011
Terms: £373pm for 24 months
Payment history: No late payments

Barlcays loan 2 (closed)
Start date: 06/06/2012
Settlement date: 06/11/2012
Terms: £291pm for 48 months
Payment history: No late payments

Barclaycard 1 (open)
Start date: 26/02/2010
Credit limit: £10,200
Balance: £9,061
Promotional rate: Yes
Minimum payment marker: No
Payment history: No late payments

Barclaycard 2 (open)
Start date: 24/08/2012
Credit limit: £2,000
Balance: £1,598
Promotional rate: Yes
Minimum payment marker: No
Payment history: No late payments

Capital one (open)
Start date: 29/06/2011
Credit limit: £1,100
Balance: £37
Promotional rate: No
Repayment: Paid in full
Payment history: No late payments
Cash advances: a few in the last 12-18 months

HSBC (closed):
Start date: 18/10/2005
Settled date: 29/05/2009
Credit limit: £500
Balance: 0
Payment history: 5 late payments in 2007 (May to July and then October to November), 9 late payments in 2008 (March to July and then October to December)

MBNA (open)
Start date: 13/04/2011
Credit limit: £5,600
Balance: £4,560
Promotional rate: Yes
Minimum payment marker: No
Payment history: No late payments

Natwest - current account (open)
Start date: 08/06/2005
Overdraft limit £1,000
Overdraft usage: fairly regular
Payment history / exceeded overdraft: No late payments and overdraft not exceeded

Natwest CC 1 (open)
Start date: 13/04/2011
Credit limit: £3,050
Balance: £2,789
Promotional rate: Yes
Minimum payment marker: No
Payment history: No late payments


Natwest CC 2 (open)
Start date: 08/05/2010
Credit limit: £1,250
Balance: £1,014
Promotional rate: Yes
Minimum payment marker: No
Payment history: No late payments

Nationwide - current account (open)
Start date: 08/04/13
No overdraft
Payment history / unauthorised overdraft: No

Natwest loan 1 (closed)
Start date: 31/03/2008
Settlement date: 09/04/2009
Terms: £95pm for 36 months
Payment history: No late payments

Natwest loan 2 (open)
Start date: 12/01/2012
Settlement date: Due to be repaid next month
Terms: £371pm for 24 months
Payment history: No late payments

Notes

1. The balances are a couple of months out of date
2. I have used some of the credit cards (Barclaycard / Natwest) and the AMEX charge card for cash advances in the last 2-3 years (pre-promotional rate). However, I have always paid it off in full.
3. I have used MBNA / Natwest for money transfer (on a promotional rate)

happy_bunny_2

That HSBC account will be gone from your record in May 2015.

Looks like you have quite a bit debt at the minute, just start to pay it off the most expensive APR first.

When you pay off cards, it's probably better to keep then open until the lady 6 years payments are all up to date. That way you avoid the situation of the HSBC account where the late 2007 payments would not show by now.

Good luck

HB

Non_compos_mentis

Thanks HB

You are right there is a fair bit of debt but it is coming down at the rate of knots.

I am aware that the HSBC record will drop off in 2015, we are looking to get a mortgage towards the end of next year. I am trying to use the next 12 months as wisely as possible to ensure that the credit file is in the best possible health.

I am aware that I need to pay off the debts and have a significant deposit before I can even consider a mortgage. However, given my income level and a trust maturing (only to be used towards a house), I should be in the position to afford to pay off all the debts and afford a deposit.

The question then is, how much of an impact will the HSBC account have on the credit file? I understand it is in tatters at the moment due to the account, relatively high levels of debt and credit utilisation.

NCM

Thrugelmir

From a mortgage lenders perspective. Besides the obvious comments. There's a lack of electoral roll history plus regular overdraft usage on 2 bank accounts to be considered.

Over time reducing the number of accounts you have would be advisable.

Non_compos_mentis

Thanks Thrugelmir

If I understand correctly, there are a number of issues:

1. The HSBC account, how of an impact will this have?
2. Potentially the cash advances, how far back would the lenders go and how much impact would this have?
3. The regular use of OD on two accounts, how far back would the lenders go and how much impact would this have?
4. High availability of credit / utilisation rate, how far back would the lenders go and how much impact would this have? Additionally, if I were to close accounts then yes it would lower my availability rate but potentially increase my utilisation rate.

Are there any other issues that I should be aware of?

NCM

Thrugelmir

Lenders have access to 72 months of data. So the approach to have is one of looking forward. As the cleaner your record becomes the better a lender will score you.

happy_bunny_2

It's quite old the HSBC account so best post on the mortgage board as they can advise better on maybe using a mortgage broker.