Equifax credit rating "Fair" ???

smartmove07

I ran a equifax credit report on myself today just to make sure nothing nasty was lurking. I was a little dissapointed to get a rating of "Fair" and not "good" or "excellent". I have never failed to pay loans, store/credit cards etc.. The only negative I can think of is I have had 3 different addresses in the last 3 years and I am not currently on the electoral roll. Is this enough to make my rating "fair" and will this damage my chances of being accepted for a mortgage?

Thanks.

homer_j_3

electoral role will have an impact on your score. You should see an improvement in your score by getting your details on it.

Re mortgage, some lenders will not consider, others will ask for proof of address history - normally bank stats or utility bills dated for each of last 3 years.

herbiesjp

YOur credit file with Equifax or Experian is not the be all and end all when applying for mortgages - it is an indication.

Each lender carries out a search but applies it to their own internal scoring system normally, so the results may be closely linked, but it depends on the lender in question. Also it will depend on which credit file they link up to i.e. Equifax or Experian - as while the two are meant to have the same details, there are sometimes discrepancies between the two, giving different scores.

With a fair score I would suggest you should not have any problems in getting a mortgage

raq

i agree with herbiesjp as I was going through the same yesterday with my financial advisor.

We where also panicking on the outcome

Jonbvn

Hi,

I am in a very similar position to you. I have never defaulted on any loan/credit. However, my credit report also shows me as only "FAIR".

The reason for this is that I worked and lived overseas for many years and was not on the electoral register. I moved back to the UK last year, and bought a house, and now I am on the register. I understand that when I am on the register for 6 years, my credit rating should be at least "good".

smartmove07

Just to update you all. I noticed on my credit report something going back 4 years to a mobile phone contract. It indicated some missed monthy payments (about 4 in a row) which certainly did not happen. I queried this with Equifax and the mobile operator and they agreed and amended my credit file within about a week. I now have a "Good" credit rating according to my latest Equifax credit report. Just goes to show that these reports can be useful!

Fizog

A big impact on credit reports is the electoral roll as it is the one place you can be traced, also if your name is on the utility bills and have a main line phone is all reassuring to credit houses. They like a solid paper trail.

Glad you found your blip and your status is altered..sometimes it is something as piffling as two late payments on a catalogue.

*EssEncE*

It might be worth noting that your credit score is not only dictated on your payment history / voters roll, but also on where you currently reside.

So, if Mr Bloggs 3 doors down has defaulted, numerous CCJs and a repossession to his name, that unfortunately reflects on you.

foreversummer

Why on earth would your neighbour's credit score make any difference?! I've never heard this before - please clarify.

Foreversummer

homer_j_3

Credit scoring models will often incorporate some form of statistical analysis. There are companies out there that have so much information, they can predict the credit worthiness and liklihood of set people repaying their debts.

For example this collated information may say that a 25yr old male living in M17 postcode is more likely to default than a 25yr old male living in m3 postcode. So if you have moved into M17 from M3 then your credit profile could be affected due to this. Even though your ability to pay or credit worthiness has not been affected.

Clearly my example is very simplistic and it will not normally boil down to just one factor but a combination of many factors. So because your neighbours are all bad payers or have historically been bad payers your neighbours may actually effect your ability to borrow but its unlikely this factor alone will do it.