Credit rating- End of my tether.

Dannygee22

Hi all,

 I've been trying to rebuild my credit rating since an IVA that was settled 2.5 years ago. I am doing everything as requested, but my credit score keeps on going up and down and I can see no reason why.

 My circumstances are I bought a property a few years before the credit crunch on a 125% self cert interest only mortgage. (I know, first and major mistake). When the credit crunch hit I was forced to sell the property in negative equity, which did not even pay off credit card and consolidation loans I had taken out to try and keep afloat. I struggled along like this for a few years, but it became impossible to manage, and eventually I entered a debt management plan. This went on for quite some time, but none of my creditors were freezing interest, so it became clear that I would never pay off the debt, so finally I entered into an IVA in 2016, and was able to settle it with a donation from a family member in September 2017.

  I am now married with 2 children, and we are living in rented accommodation, and are desperate to own somewhere of our own one day, and we would like to utilise Help to Buy, as the area our family is is pretty expensive. This obviously puts more of a time constraint on things as we are not considered first time buyers, so would need to get this done prior to the Help to Buy regulation changes in 2021. We are saving hard, I am full time employed earning well, my wife is a self employed child minder, so we are being hit hard at the moment financially, but I am able to still put aside some money, and we are on track to have the deposit saved by the time the 3 years has passed in September. I know it will disappear off my report after 6 from the settled date.

 However, I am getting hit by my credit rating, and no matter what I do, I seem unable to improve it from Fair.  Last month it went up by 60 points and I was in touching distance of a good rating, but this month it has gone down by 109, and I am teetering over poor. I have done nothing different in these 2 months so I have no idea what to do.

 The steps I have taken are -

1. On the Electoral roll- I have been since 2000

2. Using a credit builder from Aqua. I took this out in 2017, and I have used it every month up to less than 50% of the credit limit, and have paid it off every month. They did keep on raising my credit limit to £4k, but then reduced it because I didn't use it enough. This hit my credit score hard, and I have learnt my lesson there. However, I have ensured that they will not raise my credit limit again. The only difference between this month and last month is that I was much closer to 50% of my credit limit on the card, but again, it has all been paid off. My credit report shows an arbitrary low amount on my credit card, which I am unclear why.

3. I have missed no payments since 2014, confirmed on my credit report. I have no mobile, as I use my work one, but I have a broadband account, utility bills, Council tax etc.

4. Signed up to Credit Ladder, who report on my monthly rental payments. This appears to make no difference.

5. No credit searches on my account since Jan 2019, which was approved.

 I've done a lot of research, and all these steps should be improving my credit rating, but they just aren't. I have been doing this since 2017, and it feels hopeless. I am desparing now as it seems there is no way to do this. I understand entering the IVA is going to have a negative impact, but it has been settled, and I just want to get on with my life with my family.

 Any advice anyone could give me here of what I am doing wrong would be really appreciated. I am desperate now.

Thanks

Dan

Willing2Learn

Don't worry about your 'credit score' as mortgage lenders neither see nor use it.  A mortgage lender will score you against their independent lending criteria and policies, using the data held in your credit files, added to the data you submit in your application, added to any data they may already hold on you as an existing or returning customer.  It is all about the data.  

D3xt3r5L4b

Ignore any reference to your score and rating 

Dannygee22

Really? I thought it was all about the credit score. Looks like I was misinformed, that is great to hear. Getting a good credit score feels like witchcraft to me😀

sourcrates

Credit scores are essentially, at there basic level, made up numbers used to sell you credit improvement products or services.

You will still have your insolvency on your credit report, plus related defaults, once these have gone, your "score" may still go up and down for no apparent reason, but your credit history will look a lot better to a potential lender.

Dannygee22

sourcrates said:

Credit scores are essentially, at there basic level, made up numbers used to sell you credit improvement products or services.

You will still have your insolvency on your credit report, plus related defaults, once these have gone, your "score" may still go up and down for no apparent reason, but your credit history will look a lot better to a potential lender.

Thankyou that is very good to hear.