Why do I have such a bad credit score?

beaellis89

Hi - I have used experian and equifax for a number of years; I had a bad spell and got in debt 4 years ago which massively affected it I did get a CCJ but settled imediatley - This is now all cleared, I have a good weekly wage, I dont miss payments (I pay by standing order) I have a phone contract in my name and have done for 3 years, I paid my car insurance off in one go but I missed 1 payment 3 weeks ago and it went down to 130 - The lowest it has ever been.
I have no debt, no overdraft, constantly refused credit (I don't try all the time but when "soft searches" are done they are rejected - I don't know what else I can do? I would like to apply for a mortgage but I am ashamed of my score and know i will get rejected even though on paper everything is green on my credit score apart from the 1 missed payment and a CCJ I got 5 years ago that is paid and settled?

Tixy

Hi

No potential lenders will ever see your score, so don't focus on that, in fact it is not worth buying. Focus instead on what is showing on the actual credit report.

When you say you settled the CCJ immediately - was that within a month of the judgement date? if so then it should not appear on your credit file at all.

If the CCJ does show on file then that will still have a big impact on any potential lenders lending decision.

Does your credit file show that the CCJ is settled?

Are you on the electoral roll? does this show on your credit file correctly?

Is the mobile phone contract the only open credit account on your credit file?

beaellis89

If the CCJ does show on file then that will still have a big impact on any potential lenders lending decision. Yes it does - it has been on 3 years now.

Does your credit file show that the CCJ is settled? Yes - it shows as settled, it was done 6 months after as I had moved back home and didnt even know about it until they tracked me down. would I be able to argue they had the wrong address?

Are you on the electoral roll? does this show on your credit file correctly? Yes, I have never missed one and this shows

Is the mobile phone contract the only open credit account on your credit file? Yes - I do have my car on finance, my dad was my garuntaur - I pay double the payments each week and have not missed one in 4 years but it doesnt go on my credit rating it goes on my dads?

Tixy

Regarding the address issue and the CCJ - a creditor will send to the last known address. If you had informed them of your new address and could prove that then you might have had a case to have the judgement set aside at the point you found out about it.

From a potential lender's point of view when they search your file, the old CCJ and very limited recent credit history is likely to mean they will view you as high risk.

What places have you applied to and been declined by? If you have only been applying for mainstream finance then it may be worth considering applying for a subprime credit card. If accepted this would help you build up a positive credit history, and when your CCJ drops off in a year's time will make you look more attractive to potential lenders.

However given the very recent missed payment, I'd wait until that is next updated to show you are back up to date before applying for even a subprime credit card.

If you do get a subprime card these have high interest rates, so use it for credit building purposes only, ensuring you pay in full each statement.
Have a read of this - http://www.moneysavingexpert.com/credit-cards/bad-credit-credit-cards - the need to know section on each card will give you an indication as to which providers might accept you