Mystery Credit History Problem

MWi

I could do with some advice on a mysterious problem with my credit history that’s come to light – very helpfully – just when I’m arranging my first mortgage. I passed the initial credit check for a Decision in Principle with no problem at all, but at the second check something did come up, listed on the bank’s system as a ‘Category 2 reject.'

The bank tell me that it’s not a problem arising out of my history with them. I have banked with them for nearly twenty years, and although I’ve in the past had my financial problems (nothing serious: just a long period of low earnings and consequently a big overdraft that took a long time to shift) they are all resolved, my ‘behaviour rating’ is very good, and they were quite clear with me that nothing on their system exists to prejudice my application. Therefore, as usual, I was asked to provide a copy of my Experian report. This, however, is where the mystery really begins, because it shows nothing. Nor does my Noddle report, which I downloaded as a cross-check. Both give me a very good, though not perfect, credit score.

To the best of my recollection, even when I was struggling financially, I have never failed to pay a bill, and I’m 99% certain I’ve never paid one late either. Certainly not in the last six years, anyway, as my financial situation has been pretty comfortable all that time. Nor does any indication of a missed or late payment for anything appear on my file.



I currently have no debts at all beyond a trivial amount (as in, £50 or so) on a credit card. I have never been in an unsustainable about of debt, and such debt as I used to have (student loans, career development loan) was all taken out with my own bank, and was all paid off a few years ago. The only other unsecured debt I’ve ever had is a couple of store cards, neither of which I ever used much and both of which I paid off religiously each month. I have no CCJs, have never been bankrupt, never defaulted on a loan, never been associated with anyone with a bad credit record, and in general my financial history is completely transparent and rather dull!

The only things I can think of that might conceivably be a problem are:

1. One of the linked addresses on my Experian report is incorrect by one digit – someone has typed 42, not 420. I have raised a dispute about this with Experian, who informed me the information came from the bank, whom I have subsequently also asked to check and correct their information. I see on my Noddle report – where the info is otherwise correct – that the same flat has been given a letter rather than a number (i.e. Flat C instead of Flat 3), which was also the address held by some utilities at the time and did occasionally lead to some minor confusion. Nevertheless, it is not incorrect as such, and in any case I left that property eight years ago.
2. Back in 2006 I had a dispute with a utility firm when seeking to change suppliers after moving house. Basically they tried to bill me £150 for a week’s gas, which I naturally protested about. It took six frustrating months, including them denying they’d had letters I’d kept copies of and phone calls I’d been careful to log, before they admitted an error and billed me for a more realistic £6, which I happily paid. That was eight years ago, though, so if it was ever an issue it shouldn’t be now, surely?
3. I’ve lived at two addresses – one many years ago and one three years ago – where previous tenants have had bad credit histories. On one occasion, back in 2002 or thereabouts, this did lead to me being declined a contract for a mobile phone. However, once I was on the electoral roll at that property I had no further difficulties, and I’ve always been careful to update the electoral roll as soon as possible after any house move since. Yet could this be an issue, somehow?

In short, my credit rating seems to be seriously impaired by something neither I nor my bank can identify; which has not stopped me passing three letting agencies’ credit checks, plus one for a credit card, in the last few years; which almost certainly dates from a long time ago; and which may reflect an error in any case. Needless to say, I’m hugely frustrated by all of this, and frankly I’ve no idea what to do about it. I suppose the only obvious step is to contact every utility company I’ve dealt with in the last decade or so and request what information they have on me, but is this worth doing? Is there anywhere else I can go to find out what this mysterious problem might be?

All advice gratefully received…

Tixy

I would start by getting a copy of your equifax credit file if you haven't done already.

Does any of your credit files show you as being financially associated with anyone else?

Do all your credit files show all/any previous addresses that you provided for the mortgage application?

I would go back to the lender and ask them to confirm that the rejection was as a result of something on your credit report and ask them which credit reference agencies they checked.

MWi

Tixy wrote: »

I would start by getting a copy of your credit file if you haven't done already.

Does any of your credit files show you as being financially associated with anyone else?

Do all your credit files show all/any previous addresses that you provided for the mortgage application?

I would go back to the lender and ask them to confirm that the rejection was as a result of something on your credit report and ask them which credit reference agencies they checked.

Thanks for the quick reply.

This is going to sound horribly naive, but what do you mean by 'credit file'? I've got print-outs of my full Experian and Noddle reports here now, both of them clear. Do you mean there's somewhere I can get more detail than that?

In answer to the rest of your questions, both reports show all of my previous addresses back to 2001 or thereabouts, and show - correctly - that I have never had a 'financial association' with anyone else.

As for the final points, I've not actually formally been rejected yet, although it's not looking good. I do know, however, that adverse credit history is the reason - or at least the one they're giving me! I think they told me they use Experian themselves, but I will query this point if it will help...

Tixy

Oops - sorry missing the word equifax from the first sentance - I meant to say get your equifax file as well as the other 2 you already have.

Thrugelmir

MWi wrote: »

In short, my credit rating seems to be seriously impaired by something neither I nor my bank can identify; which has not stopped me passing three letting agencies’ credit checks, plus one for a credit card, in the last few years; which almost certainly dates from a long time ago; and which may reflect an error in any case.

Mortgage lending has different criteria to other forms of borrowing.

Post up details of your mortgage application on the Mortgages board. May be as simple as the fact that you don't meet this particular lenders criteria.