Debt collection - Credit rating

malachite82

Hello Forum,

Last year I was having some billing problems with my elec/gas supplier, who forgot to bill for electricity for a few months. When they remembered, the agent promised it would be handled as a 'new' bill, rather than going through a debt collection agency - however, when the bill came, it was a demand from a debt collector after all. I rang the utility company back, and they cancelled it immediately as an error. However, since then my credit rating seems to be poorer than it used to be.

Does anyone know if being referred to a debt collection agency affects credit ratings, and whether this would linger after being withdrawn?

In short, I'm trying to establish
1) Whether this is likely to appear on my credit history and
2) If it does, whether I am able to have it removed.

I know I can check my own credit score, but I've been told in the past that checking the score also has a negative effect on your credit rating.

(edited from previous waffley post)


Thank you for any advice!

Adam

Nebulous2

You need to look and see! We cannot tell if it is on your credit report. There are three different agencies. You can check Noddle - which is callcredit for free if you register with them. There are also Experian and Equifax. Worth checking both of these as well. One of them is also available free, but you can get a statutory report from any of them for £2. Don't pay a suscription fee to any of them.

If it is showing then you would need to submit a formal complaint to the utility company who have provided them with the data.

DCFC79

If it's listed on your credit history then get it removed, if it's not on your history then I don't know but your credit rating isn't important so stop wanting it to go up.

malachite82

Hi DCFC79,

Sadly my credit rating is important when I'm trying to manage debt and take advantage of balance transfer deals.

Regards,

A

[Deleted User]

What DCFC79 means is that you don't have a credit rating, as in a single score. Any score you get given by a CRA is fictional.

What you do have is a credit file with the history of how you have managed your finances.

mwarby

malachite82 wrote: »

I know I can check my own credit score, but I've been told in the past that checking the score also has a negative effect on your credit rating.

A load of rubbish spouted by those with only a slight clue (a little know can be dangerous)

Yes credit searches have an impact on credit worthiness, but they are recorded along with a type, when you get your credit rating it shows as a search(for auditing purposes) but it's not a credit application search(often known as hard search).

As I understand it lenders only see the hard searches, not any other sort. The other sorts are only seen by tjse conducting the search and you for audit purposes

The only reason why searches impact your credit history is that lenders want to know about other accounts that maybe still being setup and are not recorded. Many credit application or 'hard' searches can make you look desperate for credit

There are also soft searches and id check searches these also have no impact, and are often seen while searching for insurance.

DCFC79

Deleted_User wrote: »

What DCFC79 means is that you don't have a credit rating, as in a single score. Any score you get given by a CRA is fictional.

What you do have is a credit file with the history of how you have managed your finances.

Thanks, yes that's what I meant.

Thanks for explains it to the OP.

malachite82

Thanks everyone for your comments so far - can I check though, if the debt collection reference is on my credit history, is it something that can be removed (since it should never have been applied), and how can something like that be done?

Many thanks again
A

[Deleted User]

Check your files to see if a default appears. If it does, contact the supplier and CRA to have it removed.