Poor score

Gobbolino

Hi all,

Just got a potentially permanent job so had the first inklings of thinking about saving quickly to buy a place. Checked my credit score with Equifax - was suprisingly low! At the bottom of their Excellent category which seems not too excellent! Immediately signed up to the Electoral Register and cancelled an old unused credit card. Had a late payment on credit card a year ago when I forgot to set up a direct debit but couldn't see any other adverse events. Can late payments be appealed? I paid off the whole amount immediately in the hope that would help matters but I guess to no avail. I have a decent salary which will now increase further and everything gets paid by direct debit. Only other thing I can think of would be a dispute with British Gas who were trying to overcharge me a few years back. What can I do to rescue my score? I was expecting it to be a good bit better! I'm even paranoid about applying to letting agencies when we move!

[Deleted User]

Just ignore the score and manage your accounts well. Don't miss any more payments.

National_Debtline

Hi Gobbolino,

You should start by checking the other 2 credit files as well. Information recorded on credit files can vary slightly from each report, so by having all 3 you will have a better understanding of any problems that may be on your file (the other 2 agencies are Experian and Call Credit). Unfortunately, late payments cannot be appealed – only inaccurate data can be removed from your credit file.

Credit files are quite complicated documents and the report is constantly influenced by many factors to give you your overall score. This can be things such as your age, whether or not you are a homeowner and/or on the electoral role (well done for doing that), anyone you have financial associations with and, of course, your financial history. A lack of financial history can also be damaging. So clearing one debt in full may not instantly improve the score but it will help in the long run.

When you have settled in your new employment and are in a financially secure position, you may be able to consider using very small pieces of credit each month (literally only £5-10) and then clearing this in full the month after. Your credit file should start to improve, but it can take time. Check out our factsheet for more details -
https://www.nationaldebtline.org/EW/factsheets/Pages/05 EW Credit reference agencies and credit reports/Default.aspx

Laura
@natdebtline

andyfromotley

A single late payment will have only a small impact on your ability to get credit. Very difficult to get removed. Dont worry about it.

Signing up for the electoral roll will be a huge improvement to your chances of getting credit. (it can take up to a couple of months to be recorded by CRAs)

It is hard to grasp but as others have said do not worry about your score. Never pay a monthly fee to monitor this made up number that no one sees. It means nothing and is seen by no one other than you. Just run your finances properly and you will be fine. Sounds like you are doing great. Relax.

Tixy

Gobbolino wrote: »

I'm even paranoid about applying to letting agencies when we move!

Just on this bit. A credit search for rental purposes doesn't show the credit account history etc from your report, such as the late payment you mention.

The only things that a letting agent/rental company check sees is publicly available information. i.e whether you have any CCJs, any record of insolvency i.e. bankruptcy or an IVA, and whether you are on the electoral roll.

Gobbolino

Sorry for the delay in replying and many thanks for the advice and reassurance.