improve my rating

MNM2903

Okay so I have been keeping track of my credit in an attempt to try and repair my terrible history.

My credit score at its lowest was 524 with experian. This peaked last month to 689. It has now dropped again to 609 despite the fact I have not made any applications for credit, I now have no debt, my mobile phone, broadband, etc are all up to date along with my bank account.

I basically had a history of defaults and a ccj from last year. I done partial settlements on all of the accounts and also the ccj a paid in full.

I basically want to know

1. How can I improve my score and how long will it take.
2. I was sent notification of the default to an old address so I didn't find out about it until I was refused work because of it, it was issued March 12th 2014 and paid on may 20th 2014 is there anyway to have this removed based on this as I know it would have been if it was paid within 30 days?

[Deleted User]

1. Ignore it. It means nothing.

2. Only if you had given them your up to date address.

Improve your credit files by using credit responsibly. Get a credit card, use regularly and pay in full each month.

MEM62

mullen8627 wrote: »

Okay so I have been keeping track of my credit in an attempt to try and repair my terrible history. Good idea.

My credit score at its lowest was 524 with experian. This peaked last month to 689. It has now dropped again to 609 despite the fact I have not made any applications for credit, I now have no debt, my mobile phone, broadband, etc are all up to date along with my bank account. So what?

I basically had a history of defaults and a ccj from last year. I done partial settlements on all of the accounts and also the ccj a paid in full. This will improve things.

I basically want to know

1. How can I improve my score and how long will it take.
2. I was sent notification of the default to an old address so I didn't find out about it until I was refused work because of it, it was issued March 12th 2014 and paid on may 20th 2014 is there anyway to have this removed based on this as I know it would have been if it was paid within 30 days?

Have you read nothing on these forums in respect of 'credit scores'? They are randomly made up numbers. Lenders either see or use them.

It is the data on your credit history that is important. Run your finances sensibly. If you have to use credit use it wisely and pay what you owe when you owe it. This, over time, will encourage lenders to view you more favourably.

MNM2903

Yeah after I posted this I read a lot of posts which indicated that ur credit score means nothing. I've obviously got poor credit history and I've changed my ways and paid of my debts and recent history is fine. I guess it's just going to take time.

Thanks for the replies

m4rc

MEM62 wrote: »

Have you read nothing on these forums in respect of 'credit scores'? They are randomly made up numbers. Lenders either see or use them.

It is the data on your credit history that is important. Run your finances sensibly. If you have to use credit use it wisely and pay what you owe when you owe it. This, over time, will encourage lenders to view you more favourably.

Is it not about the condition of your credit history? I know lenders don't see the score but they must 'score' something, they don't produce an essay over days made up from your credit files, it's scanned quickly and, at a total guess here, an algorithm brings together various factors that help the lender to decide if you should have access to their credit, which type of credit, the APR and the amount of credit they will give you.

I would have thought it would be some kind of number to help them decide the level of risk, I know some will go to underwriters so a human can look at he information and make a judgement, but for most the decision will be taken by software scoring certain criteria.

To me a number would make sense, the higher the number the less of a risk, the amount of credit would need to be worked out by the amounts outstanding, the amount of credit available from other lenders and the applicants income. These two would then be worked together to reach an APR figure.

I see a lot of people getting ripped aprt for trying to build their credit score, not saying you have ripped anyone apart but seen it many times, I think it's a fair assumption to most that the credit score shows the health of the credit history. Of course there are many factors, and of course many lenders use many different scoring methods, but you have to start somewhere. I often need to calculate outcomes from complicated amounts of data so I can prove a case, I end up coming out with a figure or rating that indicates a level of need, there are many ways of doing it, but what I produce is something many can understand. If I gave them the data and said 'here read all this you will work it out' it would not only bore them but wouldn't make a lot of sense.

I understand the credit reference agencies are trying to make some cash, but I don't see what else the average person can do to improve something if they have no idea what it is, what's wrong with it, how to make it better or how to tell when it's getting better.

It's fine that you need to have a good credit history but without really understanding what that means it's a bit of a challenge to get it right!

[Deleted User]

The lenders often do produce a score. But it's not the same score as the CRAs sell.

The individual needs to ensure the data is correct and then use their credit in a way that appears responsible.

I agree with you that the score could give a general hint as to whether something is very wrong or not, but people try to take action to correct a fall in their score, when very often, no action is neeeded.

The biggest issue with the CRA score is that they tend to rate people with no history very highly (as they have not yet defaulted on anything) and that any change in circumstances, good or bad, drops the score.

m4rc

There is definitely a market for a good system that helps people. I was going to say I wonder why the CRA's don't produce a better system but I guess they make their money from people who check back every time there is a slight change, so if the score didn't change often people wouldn't use their tools...

MEM62

m4rc wrote: »

There is definitely a market for a good system that helps people. I was going to say I wonder why the CRA's don't produce a better system but I guess they make their money from people who check back every time there is a slight change, so if the score didn't change often people wouldn't use their tools...

The CRA's try to convince people that they are selling exactly this type of system. They are not and its a shame that so many individuals fall for the ploy and spend money monitoring and worrying about a credit score that has ABSOLUTELY NO IMPACT on their ability to borrow money. It's a con.

The reason that no single system can be used is that lenders are all independent commercial companies. They will each have their own lending criterion and target markets. There cannot be a one-size-fits-all credit rating.