Why is my score this low? Please help!

Willing2Learn

ViolaLass wrote: »

And thus the people who make up the score have made money from it. That's what it's for.

I agree. I believe the credit score generated by Credit Reference Agencies is a marketing tool to generate income.

[Deleted User]

lizferris1984 wrote: »

Surely it has to be at least an indicator? I do believe what you;re saying, but if it was true nonsense wouldn't it be eradicated?

Think about horoscopes, magic 8 balls, tarot cards, Justin Bieber.

None of these things have any meaning or purpose, yet have not been eradicated.

Willing2Learn

Awww!!! Poor Justin Bieber lol....

jimbo26

lizferris1984 wrote: »

. Although it's ironic as your assumption seems to be that if I have poor credit, I can't manage an overdraft. Surely that's more down to what my income is, rather than my credit report?.

You do have a poor history of managing credit, that is why you have defaults and an arrangement to pay. You are seen as high risk to lenders which is why you are being rejected for further credit. Only time will repair these negative factors.

lizferris1984

!!! wrote: »

My word - you’re STILL focussing on the score.

Please - stop - otherwise you’ll become obsessed with numbers that have no real world bearing.

You are the ideal target market for the CRA’s by making you believe your score means something and then buying into products to “increase” it.

The score only exists to sell you improvement products such as Loqbox and others that I won’t mention in fear you’d end up applying for them.

Regards the defaults - a default is a black mark for the 6 years it’s on there, however a settled default does of course look marginally better than one that is outstanding or unsettled.

You need to focus on bringing down any current debts.

On that note - can you provide any information on your current situation - current debts, salary, current available credit etc

Thanks for this! An explanation was all I was looking for. I'm not about to pay for score related services. I think I was using the score as a way of describing what was happening with my report. Which has caused a misunderstanding.

My total debts (as in closed accounts) is £1130. This is on the two defaulted accounts. I have £650 available credit - currently using £400. £200 is on the credit card account I thought was closed but isn't - so in process of clearing this off. My salary is £17,000 per annum.

According to MSE credit club my debt to income ratio is low - but my credit utilsation is a problem at the moment, mainly due to that credit card!

Hope that makes some sense, let me know if not.

lizferris1984

jimbo26 wrote: »

You do have a poor history of managing credit, that is why you have defaults and an arrangement to pay. You are seen as high risk to lenders which is why you are being rejected for further credit. Only time will repair these negative factors.

Yes I do have a poor history - from a few years ago, and since then I'm earning a lot more money. So what applied then doesn't really apply now. The reason for the defaults was serious illness, which resulted in loss of work & then financial problems.

So it wasn't down to having poor financial skills, just down to actually having no money for a while, because of the illness. Btw it would I appear I don't have AP markers after all, just defaults.

I know my report looks bad right now, hence why I'm here, asking for advice on how to sort it! I guess I'd expect people who aren't credit reference agencies themselves, to consider that there may be reasons for past issues & circumstances have changed.

One day maybe I'll be rich & then we'll see who has poor financial skills. It could happen.

Willing2Learn

As far as you credit history goes, defaults are about as toxic as debts can get (a CCJ is worse). Nothing you can do about it, but bide your time and be patient. The defaults are removed from your credit files six years after the date of default. Lenders will view you much more positively once that happens (as long as you keep all your credit accounts in good order)

lizferris1984

Willing2Learn wrote: »

As far as you credit history goes, defaults are about as toxic as debts can get (a CCJ is worse). Nothing you can do about it, but bide your time and be patient. The defaults are removed from your credit files six years after the date of default. Lenders will view you much more positively once that happens (as long as you keep all your credit accounts in good order)

Thank you! Despite how I may be coming across I do realise defaults are seriously bad - I'm just quietly confident I can sort it in the longer term. I am totally assuming I won't be out of the woods for another 4 years when they expire. I'm just wondering what I can do in the mean time to help things, or if it's all basically futile until these drop off.

What do you think?

Willing2Learn

I defaulted on a few accounts back in 2009. Also due to illness (I was out of action for a while). The way you are viewed by lenders will gradually improve over the next 4 years. Just make sure you on the ER. Keep up to date with all your bills and utilities. Get a SIM-only rolling contract for the mobile. Use your credit card for your groceries and pay off the balance in full each month. And continually check your three credit files for accuracy. So no, it is not futile. (The major improvement will only come in four years though)

lizferris1984

Willing2Learn wrote: »

I defaulted on a few accounts back in 2009. Also due to illness (I was out of action for a while). The way you are viewed by lenders will gradually improve over the next 4 years. Just make sure you on the ER. Keep up to date with all your bills and utilities. Get a SIM-only rolling contract for the mobile. Use your credit card for your groceries and pay off the balance in full each month. And continually check your three credit files for accuracy. So no, it is not futile. (The major improvement will only come in four years though)

Thanks - I already have a phone contract which includes a handset, so that's all fine. I haven't had any missed payments in over 3 years on anything. Good advice about grocery payments.

What is ER?