Help with credit scoring please, new to the system.

astra13

Hi All,

Recently me and my boyfriend were looking to start saving for a mortgage, won't be looking to buy anything until a few years yet, however, we were interested to see what current state our credit score is in. Using the advice from the site I checked it on Experian and Equifax. On Equifax is stated "fair" and on Experian it stated good, but I am currently waiting on my pin so that I can access more information.


I am slightly confused by some the the language used in the report and from some information I have looked at online, particularly with the word "settled". Some places state that a settled status is good and some
State that it's bad for your credit score.


I have a few accounts at "settled" on my credit report, in each and every one of these I have paid off direct debits each month until I had no more money to pay. How can this be a bad thing? An example of one of them is an "orange" mobile phone account I had a few years back. Each month on the report is coloured green as I had always paid my phone bill each month until I no longer wanted to stay with orange. My contract was finished and I wanted to move phone companies. Another example is with "next home", I purchased furniture with them and got a great deal where I could pay it off at 0% apr over 2 years, I paid each month no problem until the Blanche was paid off and it's now at a settled status. The whole "settled" thing confuses me. I thought it was a good thing to finish paying things off?


I have a credit card transfer balance that's due to be paid off within the next two months before the 0% deal ends. I will manage this no problem, after this has been done I don't wish to use the credit card. Is it true that keeping the account open and using it from time to time will help your credit score? I'm sorry I have so many questions, I'm pretty young and new to it all.


One of the reasons my credit report was fair, was due to one mark on my account from vodafone which wasn't my fault. They wrongly charged me £500 for a phone bill whilst I was on a volunteer trip. They did not stick to the advice an advisor gave me before heading away regarding text costs. I had to pay the bill but I paid it back in installments over a three month period. "Arrangement to pay"! They informed me this would not effect my credit score but it has. If the advisor at vodafone had given me correct details previous to my trip this would never have happened. I'm hoping after I call and write to them that they will change the status on my account. Is there anything else I can do to help my credit score?






Thanks for your help.

rizla_king

What they claim are positive and negative factors on your score is all bollux from the CRAs. Lenders make up their own mind based on the raw acount data on your report so the CRAs opinion means squat. You are throwing money down the drain with their useless scores.

Complain to vodafone to get the AP off your report. If they refuse take them to the ombudsman.

sscott5581

Use the score as a guide only.

When you apply for a credit account the lender will use the information from your credit file along with the information in the application to calculate a credit score. Each lender will calculate this score differently and this is the reason why some lenders may accept and some may decline an application.

Myself I have a flawless credit file with no late payments. I have 10 active accounts and 63 settled accounts and I have no problems getting credit.

My Experian credit score is 559 (very poor - few recent credit searches and few new accounts opened will not help my score but this will improve with time) however I was accepted for a £13500 loan with Nationwide @ 5.9%.

So continue what your doing pay off all your credit accounts in time, use your credit card to buy a few items which you would have bought with your debit card and pay off in full each month. This shows good management of a credit card. In time as the average age of your credit accounts increases this will help your credit score.

As suggested contact Vodaphone regarding the AP marker.

Regards
Steven

CherlokHomes

Use the score as a guide only.

My Experian credit score is 559 (very poor - few recent credit searches and few new accounts opened will not help my score but this will improve with time)

Not quite sure how to understand this post.

Tixy

I am slightly confused by some the the language used in the report and from some information I have looked at online, particularly with the word "settled". Some places state that a settled status is good and some
State that it's bad for your credit score.

Any website that you are reading that suggests having settled accounts on your file is a bad thing is a website to be ignored.

Settled accounts are indeed a good thing.

Is it true that keeping the account open and using it from time to time will help your credit score? I'm sorry I have so many questions, I'm pretty young and new to it all.

It is a good way to maintain an active credit history and to show you are using credit responsibly. Its best to repay it in full each statement if you can, as then its costing you nothing in interest.

Regarding the AP for vodaphone - with it on file it will likely have a significant impact on your ability to get credit. So definitely contact them to complain.

sscott5581

Innovate wrote: »

Not quite sure how to understand this post.

The post is quite clear, despite me having an experian credit score of 559 i was accepted for the loan i mentioned. The reason for experian showing the low score was due to new credit accounts and recent credit searches. The score should be used as a guide only.

CherlokHomes

The reason for experian showing the low score was due to new credit accounts and recent credit searches.

Was Nationwide bothered about your new accounts and recent credit searches when they accepted you for their best rate loan?

sscott5581

Innovate wrote: »

The reason for experian showing the low score was due to new credit accounts and recent credit searches.

Was Nationwide bothered about your new accounts and recent credit searches when they accepted you for their best rate loan?

I did not say that they did - as previously mentioned credit scoring is individual to the lender, I merely stated the reason why Experian was showing the very poor score not that the score was an indication that credit would be accepted or declined.

CherlokHomes

sscott5581 wrote: »

Innovate wrote: »

The reason for experian showing the low score was due to new credit accounts and recent credit searches.

I did not say that they did - as previously mentioned credit scoring is individual to the lender, I merely stated the reason why Experian was showing the very poor score not that the score was an indication that credit would be accepted or declined.

I think we both now that the scores are very meaningless and if they were only a guide then I'm pretty sure no one including yourself would've applied for a loan and be accepted for a lenders best rate loan when Experian have basically told you they you've got no chance whatsoever hence giving you a score of 559.

It's now obvious that Whatever silly score Experian sells their customers it's blatant that they haven't got a damn clue whether a particular customer has any chance of getting credit and one of these is Experian not knowing what criteria the lender is looking for ie income etc.

Vodafone

Hi astra13,

Thanks for making me aware of your concerns.

If you'd like me to get this looked into further, could you email me with your details via the link in our profile here?

All you need to do is copy and paste the link into your web browser and it'll take you to the Contact us form on our website. To make sure it reaches me could you also quote the code WRT135 - MSE in the subject line?

Once sent you'll receive an automated reply with a reference number. So I can make sure I've got it could you update the thread with this and I'll get back to you as soon as possible?

Kind regards,

Lee

Web Relations

Vodafone UK