Experian Confusion

jtr2803

Hi All,

After spending many years on a DMP I am now clear and my final default dropped off my file last year. We recently moved so I decided to wait until I had confirmation I had gone onto the Electoral Roll at my new address. This came yesterday so I decided to check my report to confirm this was on there (it is), however, my concern is now a load of red markers on my file and a 'score' that is now significantly less than when I had defaults on it!

The main issues seems to be a) the number of seaches and b) a change in my revolving credit.....

When we moved here we had to open an account with British Gas, which I was informed involved a credit check, which I passed. However, this has resulted in the change in my revolving credit over 10 months marker as until that point I had no credit at all (my Tesco mobile has never shown up for some reason).

I also noticed 3 other searches by Natwest, whom I bank with. Now this was when hubby and I opened our joint account, I initially did the application over the phone but the documents hadn't arrived in time so we then went into branch to open the account and the advisor couldn't find a record of my telephone application so did it all again, hence the searches I guess. We have no credit facility with the joint account, no overdraft or anything.

I was hoping to apply for a credit card shortly to build up a rating as we are hoping to get a mortgage next year. I appreciate many deem the scores to be a misnomer but should I be concerned about the searches? It seems very frustrating that a British Gas account has caused so many warnings on my account!

I have no other late payment markets and I earn almost £50k a year, I am financially linked to my husband who also has no late payment markers.

matttye

Doubt the searches will be a problem, especially on your salary.

A mortgage lender would be more concerned about your overall available credit and credit usage, and it sounds like you don't really have any at the moment.

optimist68

jtr2803 wrote: »

Hi All,

After spending many years on a DMP I am now clear and my final default dropped off my file last year. We recently moved so I decided to wait until I had confirmation I had gone onto the Electoral Roll at my new address. This came yesterday so I decided to check my report to confirm this was on there (it is), however, my concern is now a load of red markers on my file and a 'score' that is now significantly less than when I had defaults on it!

The main issues seems to be a) the number of seaches and b) a change in my revolving credit.....

When we moved here we had to open an account with British Gas, which I was informed involved a credit check, which I passed. However, this has resulted in the change in my revolving credit over 10 months marker as until that point I had no credit at all (my Tesco mobile has never shown up for some reason).

I also noticed 3 other searches by Natwest, whom I bank with. Now this was when hubby and I opened our joint account, I initially did the application over the phone but the documents hadn't arrived in time so we then went into branch to open the account and the advisor couldn't find a record of my telephone application so did it all again, hence the searches I guess. We have no credit facility with the joint account, no overdraft or anything.

I was hoping to apply for a credit card shortly to build up a rating as we are hoping to get a mortgage this year. I appreciate many deem the scores to be a misnomer but should I be concerned about the searches? It seems very frustrating that a British Gas account has caused so many warnings on my account!

I have no other late payment markets and I earn almost £50k a year, I am financially linked to my husband who also has no late payment markers.

I've had things like that appear, but give it 3-6 months and your file will be fine again. Lender's underwriters will look at this and realise it's nothing to be concerned about. I wouldn't try to play the credit card game just before trying to get a mortgage. It's not too helpful unless it's an account you've had for some time. That will only result in further red marks on your report. New credit accounts are not necessarily positive.
Just keep your file clean from now onwards and wait. While waiting create a very detailed spreadsheet of all your outgoings / net income and see what you can afford based on 7% interest. When you have your lengthy consultation for the mortgage application, you'll be ready.

jtr2803

Thanks.

Sorry, I realised that I posted getting a mortgage this year but it won't be, it will be at least a years time which is why I thought getting a card now and using it and clearing it would be possibly beneficial

matttye

jtr2803 wrote: »

Thanks.

Sorry, I realised that I posted getting a mortgage this year but it won't be, it will be at least a years time which is why I thought getting a card now and using it and clearing it would be possibly beneficial

Yes - definitely. Just put regular spending on it and pay it off in full every month so you don't get stung by the interest.

If you get a cashback card you can even benefit from it.

optimist68

jtr2803 wrote: »

Thanks.

Sorry, I realised that I posted getting a mortgage this year but it won't be, it will be at least a years time which is why I thought getting a card now and using it and clearing it would be possibly beneficial

Well, going by what you've already said, I can't see why you would have a problem obtaining a credit card. Use Experian's facility to come up with suggestions. They will be based on your credit report. For example, if you had a poor credit report, you'd probably be recommended a Capital one card for credit building. If your report is good, you'll see a list of the better cards with good deals. This doesn't incur a search on your report, so it's a good way of finding out what you can apply for based on your circumstances. There's no guarantee the application will succeed, but I've never had a problem. Worth a check.
I think you can sort out your file in a year no problem, based on what you said. If it's a year or more then, yes, it's probably worth showing you can manage credit in this way too.