Confused by my Credit Rating

sugarplumfairy83

I’ve been using Noddle to keep an eye on my credit rating for a while now but am confused by my most recent report.

To give a bit of background: I used to have an excellent credit rating. Unfortunately my disability triggered a decline in health, which left me unable to work and I got into debt. I ended up owing about £5k across two credit cards. A few months ago I reached an agreement with both banks: Credit Card #1 was written off as a charitable request due to my circumstances and I received a letter from the recovery department saying they had been instructed by the bank to close my file and not pursue payment and that the account would remain registered for 6 years from the date of default. For CC#2 I made a reduced full & final payment and they wrote stating that the account is considered fully repaid and closed.

I knew it would take a while for anything to show up on my credit file and was aware that my default history would remain. The second month after sorting all of this out my credit score went up on Noddle (from 1 to 2 in May) but the account balance and status on both cards hadn’t changed. I waited until after the required 28 days had passed to raise a dispute with Noddle and in both cases provided the dates that I had received letters and information about the accounts being closed.

Now, on my most recent scoring in June I have gone down again from 2 to 1, which I really don’t understand. How is that possible? My dispute with CC#1 is still being investigated, and Noddle say the entry has been temporarily removed from the database so it won’t be visible on any other searches – I however can still see it but is this normal? The dispute with #CC2 has been resolved and the account is now considered closed, with a zero balance and 'Satisfied' status on the report. I'm a little wary with this one as Noddle have said that the dispute was unsuccessful as the organisation didn't agree to make changes to my credit file, but at the same time have updated the information. Can I be sure this is what any future creditors will see?

I do of course understand that the defaults will have to remain on my credit file but do I need to take any further action regarding CC#2 or does this now sound as if it’s been sorted? I know I’ll have to wait for Noddle to update me regarding CC#1 but it’s really playing on my mind in the meantime. I’m hoping to apply for a new bank account to escape the horrors of Santander but want to wait until my credit rating has improved slightly, as I know the more I apply and get turned down for, the worse my rating will be and I’ve already been turned down for a current account with Halifax back in Feb/March.

I haven’t posted on here for quite a while and I’m sorry this is so long but if anyone has any advice from a similar situation I’d be very grateful! In particular I don’t understand how one month my credit rating can go up and then immediately down the following month when, in reality, my financial status is better than ever. How long might it take me to build up a decent rating again and what positive steps can I take to help the situation? I’ve been sent about 6 ‘pre-approved’ applications for Vanquis cards which I’m considering, as I would only use it to pay for petrol which I have a set fund for each month and could make full repayments. Would that be a good way to improve my rating?

Thanks in advance.

Tixy

Sounds like CC2 is correct on your credit file. A potential lender will see the same as you can (allbeit it will be anonymised, they cannot see the creditor involved).

Regarding CC1 - what date did noddle tell you it had been removed from your file? was this before or after your monthly report was generated for Noddle.

In terms of your credit file and a new bank account, with very recent defaults on your credit file then it is likely you may struggle to get a regular current account (or subprime credit cards). I would look at obtaining a basic bank account with a new bank if you are unhappy with your current bank provider (basic bank accounts don't have a full credit check).

If you haven't done so I would suggest getting copies of your file from experian and equifax as well. For £2 from each it would be worth checking if the entries on these reports are correct/if they are the same as with noddle (when debts are written off because this is unusual it can mean that it is not recorded the same on each agency file).

sugarplumfairy83

Thanks Tixy.

Noddle haven't properly removed anything regarding CC#1, only that it's temporarily hidden while they look into the raised dispute. I raised that on 29th May and my most recent report was generated on 23rd June. So I think they must still be looking into it and I'm hoping it will be sorted by the time they're due to generate July's report.

I was worried I might need to start from a Basic account Would the same searches apply if I was wanting to open an ISA? I really, really need and want to start saving money properly!

Tixy

No an ISA wouldn't doesn't need a credit application search (they may still search your file but it would be an identity check, not a credit application)

sugarplumfairy83

Okay, maybe I'll prioritise that then. If I can start building up savings will that show on future applications for a bank account, basic or not? Switching bank accounts isn't urgent but I've been deeply unhappy with Santander and their level of 'customer service' for about 18 months now and just want shot!

sugarplumfairy83

Just thinking about my original post again and bumping in case anyone can help with answering why the rating went from 1 to 2 in May but back down to 1 again in June?

I've since signed up with Equifax (can't get a free trial with Experian as I used them years ago) and this has confirmed that my 'rating' (which I know many here dispute even existing!) is rubbish

[Deleted User]

The score they give you is largely made up and entirely irrelevant. Ignore it.

sugarplumfairy83

I'm sorry but I'd disagree - before incurring debts and defaulting on payments I had no trouble getting credit anywhere. Now no-one will touch me with a bargepole. I know this is because of those actions but there must be some relationship? Those actions are interpreted and transferred into some kind of system, whether you call it a rating or a score or an matching system, that lenders then use to make judgements on. I'm afraid in my current situation I can't ignore it.

[Deleted User]

You need to focus on the data in your files. That is the only thing that lenders see and make decisions on.

The only score that matters is one that any given lender may give you - but you don't know how that score is derived at.

sugarplumfairy83

Okay, that's a much more helpful and practical response, thank you

I have gone through all my data with a fine toothcomb, there are no irregularities bar those already mentioned in the OP. The only further change I could possibly make would be to cancel a storecard I haven't used in a while.

Thrugelmir

sugarplumfairy83 wrote: »

I'm sorry but I'd disagree - before incurring debts and defaulting on payments I had no trouble getting credit anywhere. Now no-one will touch me with a bargepole.

Not sure what you expect. You've entirely defaulted on one account and made a partial settlement on another. So your account will be waving red flags at any financial institution. As this information is precisely what their internal systems are geared to detect, and the computer will say "no".