Credit Score Affected??

HannahRebecca

Hi,

I had about £1100 of debt with Shop Direct Group which was sold onto a 3rd party debt collector. Due to the fact they let me pay on a monthly basis that suits me rather than every 28 days which didn't fall in line with my pay days I have been able to make regular monthly payments for the last 6 months. I am due to finish paying all the debt off my December and this is the only outstanding debt I have against my name.

I wanted to know if making regular payments to the 3rd party (Lowell) will be good for my credit score or bad as it shows i'm making repayments but also shows I got into a bad place initially?

Please advise as i'm looking to move into a bigger flat at the start of next year (after this debt is cleared) and I want to be helping myself as much as possible not making it potentially worse!

Thanks in Advance!

National_Debtline

Hi HannahRebecca


Have you been checking your credit report since setting this arrangement up in order to see how your payments are being recorded? Ideally you want to see a series of zeroes as this would indicate that the account is being paid on time each month.


It might be worth you having a read of this guide to credit reports:


http://www.experian.co.uk/downloads/consumer/experian-YCRE.pdf


Dennis
@natdebtline

HannahRebecca

Hi,

I haven't been able to check my credit score on any of the main websites as it says it cannot varify my itentity. I'm not sure if this is because the flat I am living in is registered on all the systems as 1 building rather than individual flats?

Experian_company_representative

Hi HannahRebecca.

When you apply for a credit report we do have a number of checks to confirm your ID. If we can't confirm it then we will contact you to ask for documents, this won't stop you from obtaining your report although it can mean it will take slightly longer.

If you've applied online and your address format is causing difficulties you can apply for a one off paper report by post for £2.00. You can download the form here. You can get a Statutory report from the other two agencies (Equifax and Call Credit) as well.

If the account that you had the payment arrangement with has been recorded as a default, then it would stay on your report for six years from the date of the default. Usually lenders won't update the balance on defaulted accounts until it has been paid, when it is marked as satisfied.

Once you have your report you can add a notice of correction to explain your circumstances and that you are making regular payments.

Kind Regards
Neil

GingerBob_3

Experian_company_representative wrote: »

Hi HannahRebecca.

When you apply for a credit report we do have a number of checks to confirm your ID. If we can't confirm it then we will contact you to ask for documents, this won't stop you from obtaining your report although it can mean it will take slightly longer.

If you've applied online and your address format is causing difficulties you can apply for a one off paper report by post for £2.00. You can download the form here. You can get a Statutory report from the other two agencies (Equifax and Call Credit) as well.

If the account that you had the payment arrangement with has been recorded as a default, then it would stay on your report for six years from the date of the default. Usually lenders won't update the balance on defaulted accounts until it has been paid, when it is marked as satisfied.

Once you have your report you can add a notice of correction to explain your circumstances and that you are making regular payments.

Kind Regards
Neil

Wrong form I think.

National_Debtline

GingerBob wrote: »

Wrong form I think.

I think this is the form that Neil intended to link to:


http://www.experian.co.uk/downloads/consumer/Stat-App-Form.pdf


Dennis
@natdebtline