Credit score / report advice

Mick1989

Thank you in advance for any replies.
The past 2 months I haven't applied for any credit or had any other financial statements of note, I have closed 2 accounts paid off in full and my credit rating on Noddle has went from credit score 538,credit rating 3/5 to 527,credit rating 1/5. I have trolled the forums and most people say don't read too much into credit score etc check the credit information which shows all accounts closed but surely it shouldn't decline?
When I was 18 I stupidly took out a provident loan of about £600 and a phone contract from Orange that I didn't pay, both where bought from Lowell and they have billed me for well over £3000. I have been paying them back which seems like an entirety well over 5 years, they where at one point on my file but no longer there, would this still affect my history and would I gain anything from paying this off quicker?
Finally and I am sure an easier question, I am aware that using a credit card can help improve your credit score/rating, the method I used it either pay for petrol and shopping each week and instantly pay it back on my app without it gaining interest, should I continue to do this or let it gain interest at the end of the month to help my score?

Thank you very much :money:

[Deleted User]

Mick1989 wrote: »

Finally and I am sure an easier question, I am aware that using a credit card can help improve your credit score/rating, the method I used it either pay for petrol and shopping each week and instantly pay it back on my app without it gaining interest, should I continue to do this or let it gain interest at the end of the month to help my score?

Both those options would be wrong.

Wait for the statement and then clear in full by the due date. Never pay interest to build a credit history and always ignore the scores.

With regard to your existing debts, although they may not show on your files (have you checked all three?), they will count against you when applying for anything more significant, such as a mortgage, where they will not be impressed by dragging out repayment of a debt.

If that's not a concern, then you can continue to repay at the current rate.

[Deleted User]

Ignore your scores and ratings.

To improve your credit history get a credit card and use it for normal monthly purchases and then clear it in full each month after that statement, not before then.

The delinquent accounts will drop off your credit files 6 years from the dates they defaulted, but you must still pay them otherwise they can pursue a CCJ as you have been paying/acknowledging the debt.

Willing2Learn

Mick1989 wrote: »

… I am aware that using a credit card can help improve your credit score/rating, the method I used it either pay for petrol and shopping each week and instantly pay it back on my app without it gaining interest, should I continue to do this or let it gain interest at the end of the month to help my score?

No, you need to let the card company send you a statement before you pay. Paying the balance in full by Direct Debit is the simplest way to set this up. That way it demonstrates an ability to manage credit successfully

And welcome to the forum Mick1989

Mick1989

Thank you all for the replies and welcome��... is it as simple as ignoring the credit score and just paying off that long term debt with Lowell asap (this is the Debt I have). I got rejected for car finance almost 3 years ago and haven’t applied since as my credit score hasn’t improved despite me only paying debts and not occurring anymore for about 10 years!

[Deleted User]

To build a good credit history, make sure you're using the card regularly. It demonstrates you know how to use credit responsibly.

If you want a higher credit score, just double it. Job done.

Willing2Learn

Are the long term (Lowell) debts recorded on your credit file with any of the three CRAs?

Have you asked to see a copy of your CCAs for these debts, to check for enforceability?

Have you considered making a written full and final settlement offer for either of your debts?

Mick1989

Willing2Learn wrote: »

Are the long term (Lowell) debts recorded on your credit file with any of the three CRAs?

Have you asked to see a copy of your CCAs for these debts, to check for enforceability?

Have you considered making a written full and final settlement offer for either of your debts?

I have checked with Noddle and Experian, neither record the debt.

No I haven't, sorry I have only just googled the term CCA's so new to new, found a great template on the forums for sending to them however this might sound horrendous but what does that achieve in terms of my stance on the debt?

My only debt left is with Lowell, one for £60 which will be paid in 4months and one for £3000 which will take substantially longer. The £3000 they sent me a letter offering a settlement fee of £2200, one I can't afford and two I was advised that agreeing to a settlement would affect my score also as showing as not paid off in full?

Will I ever see light at the end of paying off these debts in a reasonable amount of time? i.e car credit or dare I say mortgage one day? I am 29 and feel like I am running out of time! The decisions we make as kids eh!

michaelc1987

I've been doing my best to build my credit rating.
I've been paying off my car and a loan that I took just to build my credit.


after two years of paying debits and never missing a payment I checked my Experian report (which is the only credit bureau that the co - ownership in n.ireland will work with )
has no record of these account let allowing my payment history. and they can only see a single default of a phone contract that car phone warehouse sold me 2 contract instead of 1 that I didn't know about.

Willing2Learn

Mick1989 wrote: »

No I haven't, sorry I have only just googled the term CCA's so new to new, found a great template on the forums for sending to them however this might sound horrendous but what does that achieve in terms of my stance on the debt?

My only debt left is with Lowell, one for £60 which will be paid in 4months and one for £3000 which will take substantially longer. The £3000 they sent me a letter offering a settlement fee of £2200, one I can't afford and two I was advised that agreeing to a settlement would affect my score also as showing as not paid off in full?

If Lowell are not able to provide you with a CCA, then the debt could be unenforceable. Assuming you still wanted to honour the debt, the fact it was unenforceable would become a good bargaining tool to negotiate a reduced settlement figure. Whether the debt is fully paid or just partially settled, would not really impact on your credit file.

Just to add, what would be better for your credit file would be for the debts to be marked as defaulted, backdated to when you were 3-6 months in arrears of the original credit agreement. This is because the debt is removed from your file six years from the date of default.

Edit: @michaelc1987 - You need to start your own thread!

michaelc1987

sorry willingtolearn new to this been checking through this web site and cant find how to create my own thought was just find the subject and discus