Noddle Rating and HP

suehwl

Hi,
Hopefully someone can help, I apologise in advance if this has already been addressed.

I logged on to Noddle to check my credit file for the first time, and my rating was 1/5.

I have one default, however this was settled in July, and my electoral details are not showing on the report despite being updated in June. I have 6 clean accounts.

My car has started to fall apart and the car dealership I am with called me today to tell me that they had a special offer and were willing to buy me out of my existing finance - I have 6 months left to pay.

Will the above rating ruin my chances of obtaining a new HP agreement? Should I just forget about it trying to apply for credit?

Thanks in advance.

matttye

The Noddle rating doesn't mean anything so don't worry about that.

The fact that you have a default that was only settled last month could be a problem. When was the default issued? How much was it for? What kind of credit agreement?

The lack of electoral roll details on your credit report could also be a problem.

I would at least try to resolve the electoral roll issue before applying.

suehwl

My electoral details are on equifax according to checkmyfile, but don't really understand what everything means. default was for a credit card which a family member took out in my name. it was for £1200 and defaulted in September 2011, however I took out a finance agreement for my current car in Feb 2012 which I had no issues with. The default was settled via a payment plan and I have received a letter to say that the account is now closed.

Is it worth a try? Will one application damage my credit file any further? Lol

matttye

One application won't damage your file further. No harm in trying, but don't start trying to apply for a load more if you get rejected.

suehwl

Needless to say I was turned down for finance.

When I checked experian, my credit rating was fair. However it was showing 2 defaults. 1 for the credit card and a second for the DCA who I settled the debt with. As this has been cleared should it still be marked as default? And should there be 2 defaults for the same debt?

Experian has my electoral register details.
is there

matttye

suehwl wrote: »

Needless to say I was turned down for finance.

When I checked experian, my credit rating was fair. However it was showing 2 defaults. 1 for the credit card and a second for the DCA who I settled the debt with. As this has been cleared should it still be marked as default? And should there be 2 defaults for the same debt?

Experian has my electoral register details.
is there

Experian shows the original lender's entry as well as the debt collection agency's entry, but lenders that search your file should only be able to see the debt collection agency's entry. Does the entry from the original lender say 'debt assigned' ?

Also, is the default date on both accounts the same? It should be. If the DCA entry has a newer default date then you need to complain.

A default stays on your file for 6 years from the default date whether it's paid or not.

suehwl

Hi, yes I just checked and it says that the debt has been assigned.

can one default have such a major impact on my credit score given the record of successful accounts that have taken place afterwards?

I'm afraid the car dealership has made my credit file even worse as they searched 4 different lenders.

What can I do to make my credit file better? I have a loan that will be paid off in 2 weeks and my existing car finance is finished in feb. I have not missed payments for either. I also fully paid my previous finance without any missed payments.

matttye

Get a credit card, use it for normal spending and repay it every month.

Whatever you do don't get a payday loan.

Apart from that, have you ever heard the phrase 'time is a great healer' or similar? The same applies to credit files.

suehwl

I think I've found something that could be trashing my file. I have an old bank account which is still open, however it is still registered at my old address, and my current finance agreement was registered at my old address. I have now updated the address on the finance, however my bank makes it a little harder, I am working on it though. Once I get this address updated will that help my credit file?

Thanks

Quimoi

I'm fairly similar history wise to you (default for around £1,200 from Nov 2011, not currently shown on the electoral register, rest of history is pretty good with age of accounts/credit limits/up to date with everything etc.). All my addresses are up to date and accounts show my current one.

My noddle shows 4/5 and Experian is somewhere a bit above 900 - as people say fairly random numbers. The only CRA which shows a score in keeping with what I am offered in terms of interest rates etc. from lenders is Equifax (currently 337).

I was vaguely looking for car finance recently and found I am firmly still sub-prime with interest rates of around 25% (offered by carfinance247 if I remember correctly - no idea what they are like, didn't proceed with the finance). Everyone is different so no absolutes but I would guess you are going to be looking at similar rates.