Failed direct debit knackered my credit rating. HELP!

BigDaddyGee

Hi folks,

I've just been refused a new mortgage due to a bad credit report. I've always paid things on time, so didn't understand why this was.

I've got my report through from Experian and my rating is 639 due to 4 missed payments at the start of this year on some purchases I'd made on Very.com. I thought I had set up a direct debit online for this account back in December, and just forgot to check. The total amount I failed to pay on time was £4.65!

I can't believe I've destroyed my credit rating over a genuine mistake to pay back £4.65! :mad:

Is there anything I can do to correct this? Any help would be appreciated!!!!

Thanks!

BDG

rizla_king

I'm afraid it reflects the conduct of your finances. In that you forget to make sure you have a valid payment arrangement or method in place.

If its a one off then there will be no repeat and the impact will gradually reduce with time.

YorkshireBoy

Have you appealed the decline (in writing), citing the circumstances and amount involved?


You could place a notice of correction on your credit files (with all 3 CRAs). This will mean all applications have to be manually assessed, rather than automatically scored.

BillJones

BigDaddyGee wrote: »

Is there anything I can do to correct this? Any help would be appreciated!!

Yes, you should check in future that you are making the payments that you promised to make. The mortgage company is not going to be keen to lend to someone who's so blase about paying back what they owe.

After all, if you are this unreliable on small payments, why would they assume that you'll be better on bigger ones?

Check that you are now paying everything that you should, be more careful in future, and try again with another lender.

BigDaddyGee

I have previously had no trouble with my credit rating at all, and have had a mortgage, credit cards and loans over 20 years that have all been payed off regularly and on time.

It seems a bit harsh to be blacklisted for years over a genuine mistake for a few pounds that was paid immediately when I realised.

Will a notice of correction make any difference to future lenders looking at my score? And would speaking to a mortgage lender in person and explaining the mistake help at all?

stclair

adindas wrote: »

I was in the same boat with you a few years ago with Barclayscard. So I could feel what you are feeling.

It was also a very small amount just happened once and only a few days and I have a reasonable amount od saving with them at that time. I complained as it was not actually my fault that the DD was not taken got the fee refunded but they did not want to inform the CRA to remove the misspayment report. I think they did not want to do this as it is something to do with their reputation.

But nowadays I take a full advantages of my BarclayCard by threatening to leave them. I just got 0% interest for purchase on my BarclayCard by doing this :-))



It could be yes it could be not. It depends on who are assessing your application. If the one who are assessing your application is an experience person they might do further scrutiny and might decide on your favor. The lazy one do not bother the most simple and the easiest decision is to "reject" the application.

In my case I also got declined for application of another credit card at that time. But I do not bother to waste my time to ask for notice of correction as I know it is not that simple and straight forward due to the way the CRA work.

LOl clearly you have never seen the daft things people write in a notice of correction.

BillJones

BigDaddyGee wrote: »

It seems a bit harsh to be blacklisted for years over a genuine mistake for a few pounds that was paid immediately when I realised.

You are not blacklisted, but may find that affordability is now being scrutinised more carefully than before and that that, along with the defaults, has tipped you from a yes to a no with this particular lender.

Next month, or with a different lender, the answer may be yes. You may be better with a bigger deposit, or other factors could be at play. The best thing to do will include making double sure that no more slips happen, and then looking at trying again.

adindas

stclair wrote: »

LOl clearly you have never seen the daft things people write in a notice of correction.

Your point is ... ???
It is the fact that there are different people with different level of experience are assessing application. Is not that true that people with different level of experience exist in any industry ?? Similarly lazy people who do not want to spend time to dig further exist everywhere. Banking industry is not an exception.

It has been reported a few times the same person apply for a major credit got rejected but got approved on a other applications even a better one. The same person, the same circumstances and almost the same time one approve it one do not.

Also some people who previously got rejected go for appeals and got approved ..

How do you explain this ???

Some people have lengthy credit report for instance like me my Equifax report is 53 pages. People with more current account, credit cards will have more pages.

Do you believe all people assessing application will bother to look this into detail few red mark when they have a better and less risky alternative e.g "reject".

stclair

adindas wrote: »

Your point is ... ???
It is the fact that there are different people with different level of experience are assessing application. Is not that true that people with different level of experience exist in any industry ?? Similarly lazy people who do not want to spend time to dig further exist everywhere. Banking industry is not an exception.

It has been reported a few times the same person apply for a major credit got rejected but got approved on a other applications even a better one. The same person, the same circumstances and almost the same time one approve it one do not.

Also some people who previously got rejected go for appeals and got approved ..

How do you explain this ???

Some people have lengthy credit report for instance like me my Equifax report is 53 pages. People with more current account, credit cards will have more pages.

Do you believe all people assessing application will bother to look this into detail few red mark when they have a better and less risky alternative e.g "reject".

The only thing I'm saying is that if someone's going to make a notice of correction they should make sure it's worthy of typing.

Personally I think people should be able to upload documents for lenders to view aswell as the notice of correction.