Advice on Credit Score

osmorgan

Hi All. i had a few years of bad personal accounting and i sit today with a poor credit score around my neck! 295 to be exact. i have been declined for credit over the past few years because of this and have since settled down, pay all my bills like clockwork and earn above 35K a year, and i'm currently debt free. I will be wanting to look into a mortgage with my partner in the next year or two, but i dare not attempt to try for a mortgage until my score improves.

I have done all the usual things like re register all my accounts to my current address and registered onto the electoral roll (yet equifax still shows an old address). i have a default showing on my account from 2011 and this account was settled in Jan 2013. I also have a red mark on my file from 3 late payments back in April 2010, this account was settled on the May 2010. Back in April 2014, I did apply for a credit card by Barclays specifically for people with bad credit, and was even declined this.

Im all out of ideas here.. anyone have any advice please?

Thanks

Tixy

Do you have an current credit accounts on your credit file at all? phone contract or anything?

How recently did your credit file show you as being on the the electoral roll? was it before or after you applied for a cc in April?

Do you mean equifax doesn't yet show you as being on the e/r at your current address? which file does the barclaycard search appear on?

Don't focus on your score but on your credit report, as that is what a potential lender would see. Have you obtained copies of your credit report from all 3 agencies? Will you be planning to apply for a mortgage before the default has dropped off your credit file?

osmorgan

Hi thanks for your time. I do have accounts with BT and EE but neither show as credit agreements. All accounts under this section show as settled. I have just updated my score (last updated in May) and its now gone up to 317, which is great, but still shows as "poor". The electoral roll shows as up to date but under 2 years registered so shows this orange colour in Equifax. Hope that make sense.

I want to hopefully apply before but may need to wait a few years. When would you say mine will be off my report?

Any ideas?

Tixy wrote: »

Do you have an current credit accounts on your credit file at all? phone contract or anything?

How recently did your credit file show you as being on the the electoral roll? was it before or after you applied for a cc in April?

Do you mean equifax doesn't yet show you as being on the e/r at your current address? which file does the barclaycard search appear on?

Don't focus on your score but on your credit report, as that is what a potential lender would see. Have you obtained copies of your credit report from all 3 agencies? Will you be planning to apply for a mortgage before the default has dropped off your credit file?

DCFC79

Credit score is meaningless, what matters is whats on your report.

The_Boss

^ what DCFC said, just a nonsense made up number that doesn't exist in the real world.

Your mortgage applications will be using the lenders scoring matrix for that product and will also be based on information you record on your application form (i.e. data the CRAs do not have).

You need to wait for the default to drop up - you're not going to be able to get a vaguely decent mortgage or most likely not even one at all with a default on your file.

Tixy

osmorgan wrote: »

When would you say mine will be off my report?

Any ideas?
Owen

The defaulted account will drop off your file 6 years as the default date on file.
The other account with missed payments but no default will drop off 6years after it was settled.

osmorgan

Thanks, what is the purpose of the score system? Score aside, how do you suggest I improve my report?

DCFC79 wrote: »

Credit score is meaningless, what matters is whats on your report.

Tixy

Most people on here will say that the score is a way for the credit reference agency to make money.

The problem with the credit reference agency score is it only takes in to account a small amount of information a potential lender will consider, and its only a generalised view of how a general lender may consider the information that is on your file.

In terms of improving your report, time - for the negatives to get older and eventually to drop off, and ideally demonstrating responsible credit usage now. I would try for another subprime card perhaps vanquis as it is one of the easiest to get, or capital one, who if they do decline you may then offer you a secured card.

You might want to try the MSE eligibility checker which includes some subprime cards I believe - http://www.moneysavingexpert.com/credit-cards/bad-credit-credit-cards#how

The_Boss

Yep, the whole "Experian credit score" or "Equifax credit score" is just a money making cash cow for them. Some people with defaults and CCJs have reported "Excellent" credit scores on them, just summing up how meaningless they are.

osmorgan

Excellent. Thanks for the insight. I'll look into those options.

Thrugelmir

How much was the default for?

With regards to the Electoral Roll ideally you'll need over 3 years history.