Credit file imporvement

sillysladey · 14 September 2016 at 1:24PM

Hello,
looking for some advice please,
I have x2 credit cards, one is my current Capital one account which I manage very well, only ever use for business expenses and is repaid within a month (via expenses I claim back from work). The credit limit is £1,000 but I only ever spend around 25-35% of that.

Second Credit card is an outstanding balance of £1,850. This relates to a credit card I had years ago when I was young and dumb, I have a repayment plan in place of £50 per month and although the balance is reducing it will not be removed from my credit file until May 2017. The account ended up with a debt collection agency and the credit card account has since closed down.

That being said, when I check my credit card report it says I am utilising 215% of my available credit card limit because of this old account( £300+£1850/£1000). Has anyone experienced this before? and is there any way of having this account reclassified so it is not taking into account when expressing how I manage my current credit card?

Many Thanks,

Craig

National_Debtline · 14 September 2016 at 1:42PM

Hi Craig

When you say you checked your credit card report do you mean your credit reference file? If so I think the way it’s classifying your total available credit will be down to the credit reference agency. That shouldn’t matter if you actually had to apply for credit though as a potential lender could see that you defaulted on the debt so obviously you don’t have available credit on that account.

James
@natdebtline

sillysladey · 14 September 2016 at 1:53PM

Hi James,
Thank you for your response. Its frustrating that they classify the balance in such a way considering how I'm managing my current credit limit. The account does say default yes, which in itself kills my credit rating but to them also say I'm over utilising my available credit feels like a double whammy! Any advice as to weather or not I could have this debt reclassified? Many thanks,