Default dropped off - when will it update with lenders?

edin08

I realise the title may be somewhat concerning - clearly I got into trouble in the past, and now that the situation has improved it sounds like I'm rushing back in to get more credit. This isn't the case, please let me explain.

A few years ago I got into mess - I had over £25,000 of debt and was struggling to put it. I got some defaults and it made me face up to the situation. I've now repaid all the debt in full, and the defaults have all now dropped off - the last one dropped off on Friday just passed.

For the past 5 and a bit years I've never missed a payment. I've had several "bad credit" cards that I've used and paid on time, and have now closed. I have had a car on finance that has been settled, an overdraft (that I have never used) and I have a Barclaycard Platinum credit card with a £3000 limit. I use this for my food shopping each month and pay it off in full. The total amount of my outstanding debt just now is £0. I've made one application for credit in the last 6 months - which was to switch my bank account.

I only finished paying off the remainder of the £25,000 debt in January, and since then I've managed to save £7000 for a deposit on a flat. I'm planning on £5000 for the deposit (£100,000 flat) and £2000 fees. This will leave me with no savings, but I'll have my Barclaycard credit for any emergencies (I.e boiler breaking).

The only issue I have is my car broke down last month, and it had to be scrapped as the repair cost was more than the value of the car. I need a car for my job - I work in the community and need to travel around a lot. I've been using my brothers car for the past month as he's been away in New Zealand, but he's back next week.

I need a car that's reliable, but inexpensive. I don't want to spend a lot, so I found a fiesta with low mileage for £2500. My plan was to take out a small loan of £2500 for the car. I don't want to use my savings, as that will delay me buying my flat. I used the money supermarket and money saving expert soft search facility for loans, and all that came up was the ridiculous APR ones. Concerned, I tried a soft search win Sainsburys and Nationwide - both said it's unlikely I'd be accepted. Intrigued, I tried to see what credit cards would be available to me on moneysavingexpert and money supermarket soft search - only the "bad credit" ones.

I've checked my credit report with Experian - it's now listed as excellent, with a score of 982. I know this is meaningless. I'm on the electoral roll, have lived in my current flat for over a year, I earn almost £26,000 a year and have no debt. There's only one search showing on my credit file, and I've no missed payments. Does anyone know why I would still be declined? Or offered only "sub prime" products?

Is it that the comparison sites and banks may be working on an older version of my credit report? Should I wait a little longer to try doing a soft search again so that the banks have a chance to see my default has dropped off?

Any help would be appreciated.

Thank you.

Sarah

edin08

I've just got off the phone from Experian - the advisor told me that even though the default has now dropped off, that banks will likely be using historical data - he said they tend to buy it in batches every few weeks, and so credit searches are never "live". He said that's why I will still be showing as ineligible for mainstream loans/credit cards on sites such as MSE / Money Supermarket eligibility checker.

This doesn't seem right... Surely it can't be the case?!

I've resigned myself to the fact I may need to use my deposit to buy a new car, and delay buying my own place until I can save the £2500 back up again - should only be 6 months, but it's annoying I'll be paying more rent for another 6 months when it could be towards my mortgage!

I'm just concerned I won't get a mortgage now - the defaults are all gone from my credit report and it looks like lenders still won't come near me! �� I've been really careful and read lots of stuff on here and taken it on board - never missed a payment in over 5.5 years (last missed one was the default before it defaulted, which is now away). I've avoided applying for lots of credit and having loads of searches. I pay my credit card off in full every month. I have loads of settled accounts, been on the electoral roll. All the typical things. It's just frustrating things don't seem to have changed with the disappearance of the default! X

Thrugelmir

Consider the new Help to Buy ISA. May assist in giving your savings a welcome boost.

edin08

Yes, I shall do. Thank you for the advice!

redux

The credit files we see are updated monthly, but some seem to be a couple of months out of date, e.g. payments made regularly on 25th of month, new credit file update on 7th December shows account up to 20th October, so balance can be 3 months out of date just before next update.

I had wondered if the banks get records in real time on application, but it sounds from what you were told that they may lag just as much.

fermi

edin08 wrote: »

I've just got off the phone from Experian - the advisor told me that even though the default has now dropped off, that banks will likely be using historical data - he said they tend to buy it in batches every few weeks, and so credit searches are never "live". He said that's why I will still be showing as ineligible for mainstream loans/credit cards on sites such as MSE / Money Supermarket eligibility checker.

This doesn't seem right... Surely it can't be the case?!

Just been talking to Experian, and no, what you have been told there is not correct.

Hopefully they will post later to confirm.

Defaults should drop on the day and show up (or not) live on creditor's searches. Experian drop those of the report on the day, so they do not depend on creditors updating on time.

redux wrote: »

The credit files we see are updated monthly, but some seem to be a couple of months out of date, e.g. payments made regularly on 25th of month, new credit file update on 7th December shows account up to 20th October, so balance can be 3 months out of date just before next update.

That will almost certainly be the creditors being slow in reporting that sort of source data to the CRA + some QA time, rather than it being cached.

Experian_company_representative

edin08 wrote: »

I've just got off the phone from Experian - the advisor told me that even though the default has now dropped off, that banks will likely be using historical data - he said they tend to buy it in batches every few weeks, and so credit searches are never "live". He said that's why I will still be showing as ineligible for mainstream loans/credit cards on sites such as MSE / Money Supermarket eligibility checker.

This doesn't seem right... Surely it can't be the case?!
X

Hi Edin08.

No this isn't right, and I apologise that you have been told this.

When a lender makes a search of our records they will always see our live data, so as soon as the defaults have been removed from your report the lenders will no longer see them.

I would like to find out why you have been given this wrong information, to make sure it doesn't happen again. If you can [EMAIL="uksocialsupport@experian.com"]email[/EMAIL] your details to me I can get this checked.

I understand that you are still having difficulty applying for credit. I can also take a look at your report and see if there is anything that could be causing this.

Kind regards
Neil