Credit score drop

HaydenB

Payplan told me its because they havent carried out the annual review of my account and issued an update on my circumstances to Barclays. So my Barclays is now showing as in default. Yet in the letter I received from Barclays, they say its because Payplan have passed on my monthly payment twice for two months running.

Movingon5464

Do you have other creditors in your DMP ? Did they default you and when ? How was Barclay's previously reporting your debt to the CRA's ?

nicp60

HaydenB wrote: »

Payplan told me its because they havent carried out the annual review of my account and issued an update on my circumstances to Barclays. So my Barclays is now showing as in default. Yet in the letter I received from Barclays, they say its because Payplan have passed on my monthly payment twice for two months running.

You need to clarify this immediately with Payplan.
Also, sorry to be the bearer of bad news, but if the account has now been defaulted then your chances of getting a mortgage would be slim to none

Movingon5464

Just had a quick read of one of your other posts to get more background and seems very odd that you have been on a DMP for 5/6 years and have no defaults other than this new one. Is that correct ?

You should also check your Equifax and Call credit files too as creditors can use 1, 2 or all 3 to check you out so you need to check everything on all 3 of them before applying for a mortgage. My brother applied for a loan with Nationwide a couple of years ago and was told that the information coming back from 2 of the agencies was OK but the 3rd one wasn't so they refused him the loan.

HaydenB

Sorry, I have defaults on all my credit accounts but my score was still 996 until what happened this week with Barclays. But then I have just checked my credit reference again and it says there has been a search on my credit:

Moneysavingexpert - quotation - credit card quotation. Now I dont have a clue what this is although assume its something to do with this site. I know having credit searches done can affect your credit score so could it be this thats caused it. Also, does anybody know what it is?

Movingon5464

A quotation search is when you check to see what your chances of getting credit are without actually applying. It is also called a soft search and is nothing to worry about as it is not seen by lenders. Only applicaton searches are seen by lenders. I assume you used the tool on this site at some point ?

https://www.moneysavingexpert.com/eligibility/credit-cards/

What is the date of the Barclays default ?

HaydenB

Ah yes, it was with regards the Travel Money card - I didnt realise it was like a credit card. Its no problem if it wont show up to lenders. Thanks for that.

The Barclays default stretches back to when I first entered my DMP.

Movingon5464

If you started your DMP approx 6 years ago then you should check that all the accounts in your DMP were defaulted within 6 months of the start date. Current accounts and overdrafts can be a bit different. Then you just wait until they fall off your record 6 years from the default date. Your goal should be a credit record clear of defaulted accounts as this is what lenders see. Also check that you are on the electoral roll and this data is correct on your credit files. Another point is if you still have any live credit cards the amount of available credit you are using will affect lenders decisions too. If you was defaulted by Barclay's soon after starting your DMP then that is the date used to work out the fall off date of the record regardless of what they report now.

HaydenB

Sorry, I am having a nightmare this morning. Trying to do too much at once. Its 5 years this month since I started my DMP, so sadly not at the magic 6 year mark yet. I dont have any live credit cards, I just have a Jacamo credit account (I am a big, strapping lad) with about £50 on it which I will be clearing next week on pay day.

So in effect what you are saying is that the lenders will see my default as being 5 years ago, and not recent? Even though I am in a DMP?

sourcrates

HaydenB wrote: »

Sorry, I have defaults on all my credit accounts but my score was still 996 until what happened this week with Barclays.

You have defaults on your file, and your worrying about searches and your credit score falling a few points ?


I'm a little bit exasperated to be honest, just goes to show how meaningless credit scores are, you have defaults, lenders wont lend to you with defaults.