What Happens Next....

zharrt

OK, I am now debt free, and have been trying to slowly rebuild my credit (I want to re-mortgage ASAP), I have a current account that has not been overdrawn in a small (Vanquis) credit card I use for petrol and then gets paid off each month, all other bills are always paid on time.

This has been the drill for 2-3 years now, but according to Noddle and CheckMyFile I am still 1* out of 5*, I assume this is due to the defaults still being on my record.

However the defaults will be 6 years old between 7th Jan this year and 16th September, once the 6 years have elapsed will I start to see an improvement enough to speak to my bank. I am with NatWest and do the "online indicator" for credit cards (I know this is not the same thing but using it as a yard stick).

Is it that simple or am I being too cautious now and risking not having enough of a recent history for them to base a decision on?

Thanks in advance

CalumHeath

zharrt wrote: »

This has been the drill for 2-3 years now, but according to Noddle and CheckMyFile I am still 1* out of 5*, I assume this is due to the defaults still being on my record.

Credit scores are completely irrelevant.

Lenders do not see your credit score and those that give credit scores (Noddle, Experian, and others) do not make lending decisions.

Lenders do, however, see your credit history which is (should be?) an accurate record of credit accounts and how you managed them, and applications for credit.

Your eligibility for any credit is not solely based on one factor (and certainly not a score or rating); any combination of the following factors might be taken into consideration by a potential lender:

- amount of existing debt
- amount of existing available credit
- history of settled accounts
- history of incurring defaults
- number of recent applications for credit
- age
- whether single, married, widowed, separated or divorced
- whether home-owner, tenant or living with parents
- whether you're on the electoral register
- current employment status
- length of time with current employer
- salary

This is by no means an exhaustive list and how each credit-provider assesses you is different; some companies may not consider many of these factors (Payday lenders), some may consider even more (mainstream lenders, mortgage providers). Certain factors may not carry any weight and some might dictate the decision-making process completely - you'll never know.

Ultimately, it's up to each company whether they want to provide credit facilities and on what terms. They have no obligation to lend to anyone nor explain or justify their lending criteria at any time. It's not based on a score or rating.

Credit scores are completely irrelevant.