Confused about arrangements

greybear40

Hi there. Just a quick query. I had 2 Studio accounts on arrangements for years and before Christmas I put them back on to normal terms as thought it may be affecting my credit rating. Checked Equifax and Experian today and they have both been updated. Experian score has remained the same but Equifax has gone down!! Surely it is better to have both accounts on normal terms or will nothing change until I've managed to get my Style (6 payments late) account removed. (See ongoing 6 payments late thread). Feel like I'm never going to be able to go for this mortgage as my score with Equifax is now 306 :huh: Is there anything else that affects your score that maybe I'm not aware of?

forgotmyname

" SCORE " = not something the actual lenders use. Ignore the score.

Obviously having a list of unpaid or late payments on your credit file will affect your chances of getting a loan of any kind.

Tixy

Many things affect the score that the credit reference agencies will sell to you - outstanding balances, current utilisation of accounts, credit history, age of accounts, age of time at address, age of time on electoral roll etc etc

The good thing though is that no mortgage lender will ever see that score which can move up and down on a near daily basis. The assess your credit report raw data along with the rest of your mortgage application .

On these 2 specific accounts what is now being reported on them? what was being reported up until last month?

greybear40

It is being reported as satisfactory on experian but arrangement on equifax and noddle. They have been like that for years. I have read on here that arrangements should only be used for 6 months but I have now put them on to normal payment terms and am paying minimum payment as hoping the longer normal payments show the better?? I could clear them both quite easily in a few months as they are only £300 between them but thought a few months of normal payments would look better to lenders??

greybear40

Just checked as far back as Noddle goes on both of the Studio accounts and they have both been on arrangement for 6 years. Is this allowed? Shouldn't they have defaulted instead after 6 months? And as I have now put them both back on to normal terms will that mean I can't get Studio to amend my credit report?