Novice Alert

AGNES33

As a novice, I have a few questions to ask. I am learning, albeit annoying and frustrating a lot of you in the process.

I have just got my first credit card with the limit of £500, so that might begin to explain my poor knowledge.

I am a little confused by the terminology and advice on this page, although I do believe it to be sound.

Someone has informed me that credit scores are pretend. I think my constant use of rebuilding credit score has initiated this. They told me that building credit history is the focus. I always assumed the credit score corresponded with your credit history? Please do tell me why that assumption on my part is wrong.

Why would I be informed by Experian not to pay a default? When someone on here has used the term CCJ, which could be used to damage my credit history further. I'm confused by this also, what is a CCJ?

If that hasn't made you laugh yet what does OP mean? I honestly thought I was being called a pensioner haha.

Oh dear. I am sorry for annoying people with my ignorance. Ask me to play a Mozaet concerto anytime, but I'm still the person who gets Richard Branson confused with Vodafone haha.

[Deleted User]

Ignore the credit scores as theyre not real.

A CCJ is a County Court Judgement - lenders can apply for these if a break down in a payment relationship occurs and they want to retrieve the debts via the courts. You will also incur court fees as well on top of the amount the debt is for.

CCJ’s stay on your credit history for 6 years from the judgement date unless paid in full within one month of receiving notice, in which case it is removed completely as if it never existed.

OP means Original Poster.

Also try and stick to one thread rather than making multiples.

AGNES33

No problem. I was trying to separate myself from the shocking Vodafone post I made yesterday, hence multiple threads. I really did embarrass myself.

Are CCJ's relevant to Scotland? I did receive a debt collection letter. I only received it because it was delivered to my mum's house, but I have received nothing at my new address, which I am linked to in my credit file through my mortgage. I am very traceable.

I didn't pay the debt as this was due by June 2018. I know have it on my credit file for 6 years, as informed to me by Experian.

I have received no further communication from Vodafone. Just one debt collection letter at my mum's address. Does this mean I'll be expecting a court letter through the door?

MEM62

AGNES33 wrote: »

As a novice, I have a few questions to ask. I am learning, albeit annoying and frustrating a lot of you in the process.

I have just got my first credit card with the limit of £500, so that might begin to explain my poor knowledge.

I am a little confused by the terminology and advice on this page, although I do believe it to be sound.

Someone has informed me that credit scores are pretend. I think my constant use of rebuilding credit score has initiated this. They told me that building credit history is the focus. I always assumed the credit score corresponded with your credit history? Please do tell me why that assumption on my part is wrong.
Credit 'scores' are realistically randomly generated numbers. They are there to persuade you to subscribe to the CRA's credit building services, which are neither effective or needed. In terms of why your assumption is wrong the answer is simple, you have fallen for the advertising spiel. If you run your finances responsible you credit history will reflect this. Your history and only your history is what lenders see from the CRA's when making a decision.

Why would I be informed by Experian not to pay a default? When someone on here has used the term CCJ, which could be used to damage my credit history further. I'm confused by this also, what is a CCJ?
I cannot believe that Experian would advise you not to pay a defaulted account. This makes no sense. A CCJ is more serious than a default although both will have a significant negative impact. Of course, any negative markers should be avoided if possible but in particular void CCJ's.

If that hasn't made you laugh yet what does OP mean? I honestly thought I was being called a pensioner haha.
Original Poster. (The person that started the thread)

Oh dear. I am sorry for annoying people with my ignorance. Ask me to play a Mozaet concerto anytime, but I'm still the person who gets Richard Branson confused with Vodafone haha.

We all have to learn. There are no stupid questions.

AGNES33

I am beginning to understand that the credit score is just a generated number.

I find with my Experian account that I cannot view my credit history further back than when I opened my profile with Experian which is a pain. I know I have a history before June 2018, when the account defaulted. As I applied for a mortgage in October 2017, which was successful. Also I have settled accounts with Scottish Power from a flat I rented which is not showing on my Experian report. For me, anyway.

I am now wondering if it is a CCJ on my credit history rather than a default? Experian told me it was there for 6 years, and it is having a very negative impact despite all other accounts being in good standing.

PRAISETHESUN

You've been told correctly - your credit scores provided by the three CRAs (credit reference agencies) are basically meaningless as they are only seen by you. Each lender will generate their own internal score when you make an application based on the contents of your credit file. Therefore what matters most is your credit history (ie. how you have managed credit in the past).

The best way to build credit history is to use your credit card to make some of your usual purchases, wait until the statement is generated and then pay it off in full every month. Set up a direct debit so you don't forget. Over time your history will start to look more positive to lenders and you will start to be eligible for larger limits and better deals.

dont_use_vistaprint

AGNES33 wrote: »

I find with my Experian account that I cannot view my credit history further back than when I opened my profile with Experian which is a pain.

Anyone can get a free full history from Experian, using the statutory credit report request

MallyGirl

You can get a credit score of 999 from Experian if you have done nothing wrong - missed no payments, received no defaults or CCJs, made no arrangements to pay (AP markers). This could be because you have never had any sort of financial activity in your life - no bills in your name, bank accounts with overdrafts, loans, credit cards. You could still be a 999.
Your credit history on the other hand would be empty so you would not get offered the best deals as you have nothing to show that you pay on time.
That is why it is your credit history that matters It is evidence of your financial behaviour.

JimmyTheWig

AGNES33 wrote: »

Someone has informed me that credit scores are pretend. I think my constant use of rebuilding credit score has initiated this. They told me that building credit history is the focus. I always assumed the credit score corresponded with your credit history? Please do tell me why that assumption on my part is wrong.

I see it as being like attractiveness. There are no hard and fast rules to making yourself more attractive, but there are general rules that should help. E.g. brush your hair before you go out, and wear clean clothes.
Now, lets say that the person who runs a dating agency looks at your profile and gives you a score out of 10. You see this score, as do they, but no-one else sees it. Note that they are running the agency, they are not looking to date you. Does it matter what score they give you? If they give you a 10, does that mean that everyone on the site will want to date you? No. if they give you a 1, does that mean that no-one will want to date you? No.
It might be a good indication of how others see you. But it might not.
So do the right things to make yourself appear more attractive, regardless of whether it gives you a higher or lower score from the agency.