Credit rating

JackieBlue_2

My OH applied for a top-up loan yesterday, only to be refused credit. I have had to come clean about some credit cards I have which he knew nothing about - obviously this has upset our relationship somewhat and I have spent the night on the sofa! However, I have obtained a copy of the credit report from experian and there seems to be an awful lot of unused credit still registered on there that we no longer use. Also a late payment is logged on a loan which is no longer active - it has been paid in full (and we never paid late to my knowledge!) What can we do about these items and will doing anything alter our credit score? We did not realise that each time we apply for credit of some kind or another our rating will drop I am so worried. We are trying to sell the house in order to downsize our mortgage as my eldest daughter goes to Uni this year and we need to realise some equity, but things are looking really bad atm and I'm so scared, especially as my OH will not talk to me now.

Burlesque_Babe

Welcome Jackie

If you have credit cards which are cleared but not used, close them down. Lenders look at the number of accounts one your credit report and how much credit you have available to you already.

If the late payment was just a 1 month late, that won't really affect anything.

Was it a joint application or just in your OH's name? If joint they will have looked at everything you both have and they could have decided you are over-committed against your salary.

The CC's you have he didn't know about - how much is outstanding?

Removing any unused paid in full credit cards will help a bit, yes.

Pop up your Statement of Affairs - all your income and outgoings as per Southern Scousers sticky and we can see if we can help or give you a possible reason.

JackieBlue_2

About £4,000 - have applied for a personal loan on my own salary previously to pay these off as the amount to pay would be less than I pay now, but was refused by Nationwide.

Sorry - I am new to the site and don't really understand what you mean in your last paragraph, can you explain?

Burlesque_Babe

have a look at this Jackie

http://forums.moneysavingexpert.com/showthread.html?t=107280


if you pop your SOA up, we can have a look at your situation.

JackieBlue_2

Had just found it thanks - Derrrrr!!!! Will try to do later - cos have to get my daughter and myself to work now - I feel so sick. I'm concerned that my OH will try again today to sort out this loan and that he is making matters worse for the credit report, but I know he won't listen to me atm!!

Storm

Close off unused credit cards, but make sure that your rating isn't showing that you're at the very top of your available credit as then some lenders might think you're panicking! As you've got £4000 used then having another £1000 available shows this (hopefully).

With the loan with the late payment - check back on when this was, and if it wasn't late then you can write to the credit agencies and ask them to remove this from your file I believe - it might improve your rating a bit, but as the loan has been settled in full it should be OK I would have thought.

Have you got both your credit reports? It's worth checking both as you're 'financially linked' even if only one of you applies the others report will be checked. Remember as well that when looking at the number of credit searches that includes small things like getting a mobile phone contract etc.

If you want to pop up a SoA, we'll be able to help you come up with a budget & plan for getting the cards paid off - and hopefully if you can present this to your OH he'll realise that you're taking the initiative & tackling the debt (and you won't have to sleep on the sofa again!)

JackieBlue_2

Okay here's my SOA

Total incomings

OH

£2,921.00

Me

£675.00

F/A

£116.00

Total

£3,712.00

Outgoings

Mortgage

£1,163.38

AOL

£20.48

Gas/Electric

£95.00

Lease Contract

£328.71

Childrens savings

£30.00


Clerical Medical

Endowment

£17.88


Nationwide

Loan

£283.73

TV Licence

£13.15

Carphone w/house Land Line

£20.00


Daughters

insurance (car)

£55.00

BT (Line rental)

£13.50

Nationwide -Life ins ( Mort)

£14.21

Norwich Union

Endowment

£26.52

Direct Line (Pet ins)

£29.65

Water

£60.00

Specsavers

£8.00

Direct Line (House ins)

£16.63

Domestic & G (Boiler)

£12.99

Sky

£18.00

Council tax

£153.00

Me

Cards

£280.00

Ins (Car)

£29.00

Childrens Savings

£24.00

Phones

£50.00

Total

£2,742.83

I have 4 cc's £400 on Nationwide at 15.9%
£1442 on M&S 4.9%
£1032 on Virgin 16.9%?
£900 with Citibank 0% for 9 months - payments on these are included in cards under me

Also have Next Storecard £1110
Argos Storecard £1627

My OH has a loan with Tesco for £14,000 for his car 6.9%ish maybe lower.
He finances this though completely seperately as he is paid expenses to a separate account which covers his loan and fuel.
He also has cc's Capital One £2673 and M&S 4.9% 2817. He overpays on one of these out of our housekeeping each month approx £100.
Family allowance will probably halve in Sept when my daughter starts her apprenticeship!

Petrol is approx£140 per month - food is over £100 per week - there are five of us!!!!!

JackieBlue_2

Sorry - it posted twice

Gemmzie

JackieBlue wrote: »

Okay here's my SOA

Total incomings
OH £2,921.00
Me £675.00
F/A £116.00

Total £3,712.00


Outgoings
Mortgage £1,163.38
AOL £20.48 You could probably get this cheaper
Gas/Electric £95.00
Lease Contract £328.71 What is this for?
Childrens savings £30.00
Clerical Medical Endowment £17.88 You have two endowments?
TV Licence £13.15 This is high, are you in arrears?
Carphone w/house Land Line £20.00 What land line use does this cover?
Daughters insurance (car) £55.00
BT (Line rental) £13.50
Nationwide -Life ins ( Mort) £14.21
Norwich Union Endowment £26.52
Direct Line (Pet ins) £29.65
Water £60.00 This is high, are you on a meter?
Specsavers £8.00
Direct Line (House ins) £16.63
Domestic & G (Boiler) £12.99
Sky £18.00 Have you considered broadband with Sky?
Council tax £153.00

Total £2056.10

Debts
Nationwide Loan £283.73
Nationwide Card £400 (15.9%)
£1442 on M&S 4.9%
£1032 on Virgin 16.9%?
£900 with Citibank 0% for 9 months
Next Storecard £1110
Argos Storecard £1627
APRs and minimum payment amounts would be useful if you have them

SOA questions are above

My OH has a loan with Tesco for £14,000 for his car 6.9%ish maybe lower.
He finances this though completely seperately as he is paid expenses to a separate account which covers his loan and fuel. So the figure in the income field is just what he pays towards the household?
He also has cc's Capital One £2673 and M&S 4.9% 2817. He overpays on one of these out of our housekeeping each month approx £100. So this needs to be included in this main SOA?
Family allowance will probably halve in Sept when my daughter starts her apprenticeship! Child Benefit amount doesn't change, it's fixed at £17.10 per week for the first child

Petrol is approx£140 per month - food is over £100 per week - there are five of us!!!!! Do these come out of this SOA too?

It seems that having some things separately and some together is helping you get very muddled. Our SOA was very similar when we started.

HTH

beanielou

Hi & welcome
If Ive got this right then you both save for the children?
What is the lease for?
Maybe if your finances were more joint it would seem easier.
Food seems quite high & you have not included it in your SOA figures?
Nothing for christmas, bdays ect.
HTh