Credit score question

LunaD

p3ncilsharpener said:

LunaD said:

p3ncilsharpener said:

LunaD said:

p3ncilsharpener said:

LunaD said:

p3ncilsharpener said:

LunaD said:

Ok so only the things I can see on the file affect it?

I can’t get credit as they say I’ve a poor credit score, they check Experian and equifax apparently so they must use your credit score? I find it so confusing. 

Thank you. 

If "they" are a lender then they're referring to how they've scored you using their own internal criteria, not how the CRAs have scored you (which they don't care about.)

You have a CCJ. Satisfied or not that's a kiss of death for most lenders.  Look at the subprime market (Aqua, Vanquis etc)

Ok so when I apply for credit if any nature say a loan on a sofa with DFS (example I’m not buying a sofa lol) and they reject me based on a credit search, what is it that goes against me? Do they not check my credit score with Experian? 

What’s showing on my credit score are they the things I need to rectify?Are these the things making any kind of credit application say no?  I have the CCJ but that’s now paid off, does that take time to clear off my credit before it stops going against me?

It was showing my score as 709/999 on Experian.  I had 1 default showing which I think is wrong as I’ve been paying it direct debit monthly, that’s with w debt collection agency. My old CCJ and credit card I pay every month. 

That’s all I had on there. Do any debts I have with debt collection agencies not go against me getting credit if they don’t show on Experian? I have a few and none of them are showing on my credit file on Experian.

Sorry for all the questions, I’m just confused. I want to have a better credit rating for my future. 

When someone does a search the search itself is recorded.  One or two in a 6 months period are fine, any more and you're asking for trouble.  You may be seen as desperate if you're applying for credit left and right.

Nobody can say for certain without seeing your credit file what you need to do but based on what you've said.

1) That CCJ will be there for 6 years from when it was issued and it'll be a major barrier to mainstream credit until it drops off your file.

2)  Once an account defaults it'll never be "undefaulted" even if you start paying it.  As it's with a DCA then it sounds like the default status is correct.  Like the CCJ that will also be a barrier but perhaps not as significant to mainstream lending.

3)  As already said, if it's not on your credit file nobody knows of its existence (other than the people who currently hold the account I suppose.)  

Other than making sure your existing debts are paid on time, you'll just have to wait until that CCJ and the default disappear.  Lenders don't like them in general, and there's no way to remove them (if they're correct) before the 6 years is up.

Thank you so much.

So the CCJ does it disappear after the debt has been repaid? And then it takes 6 years to clear? Or 6 years from when it commenced?

If the default doesn’t ever go off your file, will that always go against me? 

The CCJ will drop off your file 6 years from when it was granted against you.

Even if the CCJ is paid before the 6 years? Or not paid in that 6 years it’ll still drop off? 

The default was just 1 month back in 2018. Will that default never go?

I’m guessing it’s that 1 default and my Ccjs making my credit low. 

Thank you for helping  me to understand this better.  I find it so confusing.

Paying has no impact on when a CCJ or a default will drop off.  A CCJ will drop off 6 years from when it's granted.  A default will drop off 6 years from the default date.

That makes sense. And if I pay off the CCJ before the 6 years that won’t even make a difference to my credit file? 

Thanks again.

p3ncilsharpener

LunaD said:

p3ncilsharpener said:

LunaD said:

p3ncilsharpener said:

LunaD said:

p3ncilsharpener said:

LunaD said:

p3ncilsharpener said:

LunaD said:

Ok so only the things I can see on the file affect it?

I can’t get credit as they say I’ve a poor credit score, they check Experian and equifax apparently so they must use your credit score? I find it so confusing. 

Thank you. 

If "they" are a lender then they're referring to how they've scored you using their own internal criteria, not how the CRAs have scored you (which they don't care about.)

You have a CCJ. Satisfied or not that's a kiss of death for most lenders.  Look at the subprime market (Aqua, Vanquis etc)

Ok so when I apply for credit if any nature say a loan on a sofa with DFS (example I’m not buying a sofa lol) and they reject me based on a credit search, what is it that goes against me? Do they not check my credit score with Experian? 

What’s showing on my credit score are they the things I need to rectify?Are these the things making any kind of credit application say no?  I have the CCJ but that’s now paid off, does that take time to clear off my credit before it stops going against me?

It was showing my score as 709/999 on Experian.  I had 1 default showing which I think is wrong as I’ve been paying it direct debit monthly, that’s with w debt collection agency. My old CCJ and credit card I pay every month. 

That’s all I had on there. Do any debts I have with debt collection agencies not go against me getting credit if they don’t show on Experian? I have a few and none of them are showing on my credit file on Experian.

Sorry for all the questions, I’m just confused. I want to have a better credit rating for my future. 

When someone does a search the search itself is recorded.  One or two in a 6 months period are fine, any more and you're asking for trouble.  You may be seen as desperate if you're applying for credit left and right.

Nobody can say for certain without seeing your credit file what you need to do but based on what you've said.

1) That CCJ will be there for 6 years from when it was issued and it'll be a major barrier to mainstream credit until it drops off your file.

2)  Once an account defaults it'll never be "undefaulted" even if you start paying it.  As it's with a DCA then it sounds like the default status is correct.  Like the CCJ that will also be a barrier but perhaps not as significant to mainstream lending.

3)  As already said, if it's not on your credit file nobody knows of its existence (other than the people who currently hold the account I suppose.)  

Other than making sure your existing debts are paid on time, you'll just have to wait until that CCJ and the default disappear.  Lenders don't like them in general, and there's no way to remove them (if they're correct) before the 6 years is up.

Thank you so much.

So the CCJ does it disappear after the debt has been repaid? And then it takes 6 years to clear? Or 6 years from when it commenced?

If the default doesn’t ever go off your file, will that always go against me? 

The CCJ will drop off your file 6 years from when it was granted against you.

Even if the CCJ is paid before the 6 years? Or not paid in that 6 years it’ll still drop off? 

The default was just 1 month back in 2018. Will that default never go?

I’m guessing it’s that 1 default and my Ccjs making my credit low. 

Thank you for helping  me to understand this better.  I find it so confusing.

Paying has no impact on when a CCJ or a default will drop off.  A CCJ will drop off 6 years from when it's granted.  A default will drop off 6 years from the default date.

That makes sense. And if I pay off the CCJ before the 6 years that won’t even make a difference to my credit file? 

Thanks again.

It'll be marked as satisfied, which will make very little difference to the vast majority of lenders.

LunaD

Thanks again for your help 😊

[Deleted User]

LunaD said:

p3ncilsharpener said:

LunaD said:

Ok so only the things I can see on the file affect it?

I can’t get credit as they say I’ve a poor credit score, they check Experian and equifax apparently so they must use your credit score? I find it so confusing. 

Thank you. 

If "they" are a lender then they're referring to how they've scored you using their own internal criteria, not how the CRAs have scored you (which they don't care about.)

You have a CCJ. Satisfied or not that's a kiss of death for most lenders.  Look at the subprime market (Aqua, Vanquis etc)

Ok so when I apply for credit if any nature say a loan on a sofa with DFS (example I’m not buying a sofa lol) and they reject me based on a credit search, what is it that goes against me? Do they not check my credit score with Experian? 

What’s showing on my credit score are they the things I need to rectify?Are these the things making any kind of credit application say no?  I have the CCJ but that’s now paid off, does that take time to clear off my credit before it stops going against me?

It was showing my score as 709/999 on Experian.  I had 1 default showing which I think is wrong as I’ve been paying it direct debit monthly, that’s with w debt collection agency. My old CCJ and credit card I pay every month. 

That’s all I had on there. Do any debts I have with debt collection agencies not go against me getting credit if they don’t show on Experian? I have a few and none of them are showing on my credit file on Experian.

Sorry for all the questions, I’m just confused. I want to have a better credit rating for my future. 

When you apply for credit the lender will check whichever agency (or agencies) they use and they will have either an internal system which scores you (nothing to do with the credit score you see, you cannot see the one they use) or buy a service from the agency that scores you based on their criteria (you will again never see this score). The internal score is based on your credit history only.

As an example (purely fictitious) say they score you out of 10 internally. 10 = guaranteed loan. 0 = red flag do not lend

That score of 10 might be reduced automatically by say 4 for a CCJ as it shows that (for whatever reason, not judging you, unexpected changes of circumstances happen to everyone) you can't pay your debts on time and left it long enough that the lender took out a CCJ. They then knock of 2 for a default and then look that you are on some sort of arrangement to pay and knock off another 2 and score you 2/10 so they probably won't lend to you or if they do it'll be at a higher interest rate to reflect their risk.

It's a lot more complicated than that of course as age of debt affects things e.g. 1 default 3 years ago is a lot better than 2 from last month.

6 years after something goes on your file, it is removed and there is no trace (except any internal black lists from the lender) that you ever had them.

Ignore the score, focus on building your rating - usual stuff, credit card paid off in full every month, mobile phone contract that sort of thing and allow time to heal the file.

sourcrates

There are 4 main credit reference agencies in the UK.

Not all lenders report to all agencies, the main four UK Credit Reference Agencies are Equifax, Experian, TransUnion, and Crediva. 

You should obtain a free statutory report from all 4 to get the best view of your credit status.

LunaD

sourcrates said:

There are 4 main credit reference agencies in the UK.

Not all lenders report to all agencies, the main four UK Credit Reference Agencies are Equifax, Experian, TransUnion, and Crediva. 

You should obtain a free statutory report from all 4 to get the best view of your credit status.

sourcrates said:

There are 4 main credit reference agencies in the UK.

Not all lenders report to all agencies, the main four UK Credit Reference Agencies are Equifax, Experian, TransUnion, and Crediva. 

You should obtain a free statutory report from all 4 to get the best view of your credit status.

Deleted_User said:

LunaD said:

p3ncilsharpener said:

LunaD said:

Ok so only the things I can see on the file affect it?

I can’t get credit as they say I’ve a poor credit score, they check Experian and equifax apparently so they must use your credit score? I find it so confusing. 

Thank you. 

If "they" are a lender then they're referring to how they've scored you using their own internal criteria, not how the CRAs have scored you (which they don't care about.)

You have a CCJ. Satisfied or not that's a kiss of death for most lenders.  Look at the subprime market (Aqua, Vanquis etc)

Ok so when I apply for credit if any nature say a loan on a sofa with DFS (example I’m not buying a sofa lol) and they reject me based on a credit search, what is it that goes against me? Do they not check my credit score with Experian? 

What’s showing on my credit score are they the things I need to rectify?Are these the things making any kind of credit application say no?  I have the CCJ but that’s now paid off, does that take time to clear off my credit before it stops going against me?

It was showing my score as 709/999 on Experian.  I had 1 default showing which I think is wrong as I’ve been paying it direct debit monthly, that’s with w debt collection agency. My old CCJ and credit card I pay every month. 

That’s all I had on there. Do any debts I have with debt collection agencies not go against me getting credit if they don’t show on Experian? I have a few and none of them are showing on my credit file on Experian.

Sorry for all the questions, I’m just confused. I want to have a better credit rating for my future. 

When you apply for credit the lender will check whichever agency (or agencies) they use and they will have either an internal system which scores you (nothing to do with the credit score you see, you cannot see the one they use) or buy a service from the agency that scores you based on their criteria (you will again never see this score). The internal score is based on your credit history only.

As an example (purely fictitious) say they score you out of 10 internally. 10 = guaranteed loan. 0 = red flag do not lend

That score of 10 might be reduced automatically by say 4 for a CCJ as it shows that (for whatever reason, not judging you, unexpected changes of circumstances happen to everyone) you can't pay your debts on time and left it long enough that the lender took out a CCJ. They then knock of 2 for a default and then look that you are on some sort of arrangement to pay and knock off another 2 and score you 2/10 so they probably won't lend to you or if they do it'll be at a higher interest rate to reflect their risk.

It's a lot more complicated than that of course as age of debt affects things e.g. 1 default 3 years ago is a lot better than 2 from last month.

6 years after something goes on your file, it is removed and there is no trace (except any internal black lists from the lender) that you ever had them.

Ignore the score, focus on building your rating - usual stuff, credit card paid off in full every month, mobile phone contract that sort of thing and allow time to heal the file.

Thank you so much.

I have a few debts with a credit agency (husband was made redundant, now has a new job) but none of these show on Experian, Equifax etc so so they not effect my credit file?  So any future lenders don’t see them either? I pay them monthly and I’m chipping away at them.

So my score I see on Experian or Equifax doesn’t help my credit file? I want to move in the near future so I’m thinking mortgage. I’m worried these debt collection agencies will go against me but they’re not showing on my credit files at all when I check Experian etc. 

My CCJ comes off in 2 years, it’s satisfied but does this help at all or do I need to wait the full 6 years before my credit rating boosts?

Myself and my husband took out a credit builder card this week I read this can help your credit rating and we both had a credit limit granted of over £1200. We of course are going to stay under the 25% and pay balances in full each month. We only did this to try and help boost our credit. I hope this works. 

I find it all very confusing as people say your credit score doesn’t matter but it must do to some degree. 

[Deleted User]

LunaD said:

sourcrates said:

There are 4 main credit reference agencies in the UK.

Not all lenders report to all agencies, the main four UK Credit Reference Agencies are Equifax, Experian, TransUnion, and Crediva. 

You should obtain a free statutory report from all 4 to get the best view of your credit status.

sourcrates said:

There are 4 main credit reference agencies in the UK.

Not all lenders report to all agencies, the main four UK Credit Reference Agencies are Equifax, Experian, TransUnion, and Crediva. 

You should obtain a free statutory report from all 4 to get the best view of your credit status.

Deleted_User said:

LunaD said:

p3ncilsharpener said:

LunaD said:

Ok so only the things I can see on the file affect it?

I can’t get credit as they say I’ve a poor credit score, they check Experian and equifax apparently so they must use your credit score? I find it so confusing. 

Thank you. 

If "they" are a lender then they're referring to how they've scored you using their own internal criteria, not how the CRAs have scored you (which they don't care about.)

You have a CCJ. Satisfied or not that's a kiss of death for most lenders.  Look at the subprime market (Aqua, Vanquis etc)

Ok so when I apply for credit if any nature say a loan on a sofa with DFS (example I’m not buying a sofa lol) and they reject me based on a credit search, what is it that goes against me? Do they not check my credit score with Experian? 

What’s showing on my credit score are they the things I need to rectify?Are these the things making any kind of credit application say no?  I have the CCJ but that’s now paid off, does that take time to clear off my credit before it stops going against me?

It was showing my score as 709/999 on Experian.  I had 1 default showing which I think is wrong as I’ve been paying it direct debit monthly, that’s with w debt collection agency. My old CCJ and credit card I pay every month. 

That’s all I had on there. Do any debts I have with debt collection agencies not go against me getting credit if they don’t show on Experian? I have a few and none of them are showing on my credit file on Experian.

Sorry for all the questions, I’m just confused. I want to have a better credit rating for my future. 

When you apply for credit the lender will check whichever agency (or agencies) they use and they will have either an internal system which scores you (nothing to do with the credit score you see, you cannot see the one they use) or buy a service from the agency that scores you based on their criteria (you will again never see this score). The internal score is based on your credit history only.

As an example (purely fictitious) say they score you out of 10 internally. 10 = guaranteed loan. 0 = red flag do not lend

That score of 10 might be reduced automatically by say 4 for a CCJ as it shows that (for whatever reason, not judging you, unexpected changes of circumstances happen to everyone) you can't pay your debts on time and left it long enough that the lender took out a CCJ. They then knock of 2 for a default and then look that you are on some sort of arrangement to pay and knock off another 2 and score you 2/10 so they probably won't lend to you or if they do it'll be at a higher interest rate to reflect their risk.

It's a lot more complicated than that of course as age of debt affects things e.g. 1 default 3 years ago is a lot better than 2 from last month.

6 years after something goes on your file, it is removed and there is no trace (except any internal black lists from the lender) that you ever had them.

Ignore the score, focus on building your rating - usual stuff, credit card paid off in full every month, mobile phone contract that sort of thing and allow time to heal the file.

I find it all very confusing as people say your credit score doesn’t matter but it must do to some degree. 

It doesn't matter to any degree. It's like saying your horoscope must dictate how your day will go. It really doesn't, no matter how much those who produce them tell you otherwise. 

A settled CCJ looks better than an unsettled one.  There's no 'credit rating boost' but an ongoing evaluation by lenders of your risk at any one time.

Once the CCJ comes off, it will no longer be visible to lenders, so will again improve how they see, all else being equal.

LunaD

Deleted_User said:

LunaD said:

sourcrates said:

There are 4 main credit reference agencies in the UK.

Not all lenders report to all agencies, the main four UK Credit Reference Agencies are Equifax, Experian, TransUnion, and Crediva. 

You should obtain a free statutory report from all 4 to get the best view of your credit status.

sourcrates said:

There are 4 main credit reference agencies in the UK.

Not all lenders report to all agencies, the main four UK Credit Reference Agencies are Equifax, Experian, TransUnion, and Crediva. 

You should obtain a free statutory report from all 4 to get the best view of your credit status.

Deleted_User said:

LunaD said:

p3ncilsharpener said:

LunaD said:

Ok so only the things I can see on the file affect it?

I can’t get credit as they say I’ve a poor credit score, they check Experian and equifax apparently so they must use your credit score? I find it so confusing. 

Thank you. 

If "they" are a lender then they're referring to how they've scored you using their own internal criteria, not how the CRAs have scored you (which they don't care about.)

You have a CCJ. Satisfied or not that's a kiss of death for most lenders.  Look at the subprime market (Aqua, Vanquis etc)

Ok so when I apply for credit if any nature say a loan on a sofa with DFS (example I’m not buying a sofa lol) and they reject me based on a credit search, what is it that goes against me? Do they not check my credit score with Experian? 

What’s showing on my credit score are they the things I need to rectify?Are these the things making any kind of credit application say no?  I have the CCJ but that’s now paid off, does that take time to clear off my credit before it stops going against me?

It was showing my score as 709/999 on Experian.  I had 1 default showing which I think is wrong as I’ve been paying it direct debit monthly, that’s with w debt collection agency. My old CCJ and credit card I pay every month. 

That’s all I had on there. Do any debts I have with debt collection agencies not go against me getting credit if they don’t show on Experian? I have a few and none of them are showing on my credit file on Experian.

Sorry for all the questions, I’m just confused. I want to have a better credit rating for my future. 

When you apply for credit the lender will check whichever agency (or agencies) they use and they will have either an internal system which scores you (nothing to do with the credit score you see, you cannot see the one they use) or buy a service from the agency that scores you based on their criteria (you will again never see this score). The internal score is based on your credit history only.

As an example (purely fictitious) say they score you out of 10 internally. 10 = guaranteed loan. 0 = red flag do not lend

That score of 10 might be reduced automatically by say 4 for a CCJ as it shows that (for whatever reason, not judging you, unexpected changes of circumstances happen to everyone) you can't pay your debts on time and left it long enough that the lender took out a CCJ. They then knock of 2 for a default and then look that you are on some sort of arrangement to pay and knock off another 2 and score you 2/10 so they probably won't lend to you or if they do it'll be at a higher interest rate to reflect their risk.

It's a lot more complicated than that of course as age of debt affects things e.g. 1 default 3 years ago is a lot better than 2 from last month.

6 years after something goes on your file, it is removed and there is no trace (except any internal black lists from the lender) that you ever had them.

Ignore the score, focus on building your rating - usual stuff, credit card paid off in full every month, mobile phone contract that sort of thing and allow time to heal the file.

I find it all very confusing as people say your credit score doesn’t matter but it must do to some degree. 

It doesn't matter to any degree. It's like saying your horoscope must dictate how your day will go. It really doesn't, no matter how much those who produce them tell you otherwise. 

A settled CCJ looks better than an unsettled one.  There's no 'credit rating boost' but an ongoing evaluation by lenders of your risk at any one time.

Once the CCJ comes off, it will no longer be visible to lenders, so will again improve how they see, all else being equal.

That makes sense. Thank you 😊 

Ebe_Scrooge

LunaD said:

Myself and my husband took out a credit builder card this week I read this can help your credit rating and we both had a credit limit granted of over £1200. We of course are going to stay under the 25% and pay balances in full each month. We only did this to try and help boost our credit. I hope this works. 

I find it all very confusing as people say your credit score doesn’t matter but it must do to some degree. 

To reiterate what's already been said, your credit score makes no difference, what matters are the facts contained in your credit file.

There's no reason to restrict yourself to only using 25% of the available credit on your card - this is another myth perpetuated by the CRAs, but it doesn't matter as long as you pay in full.  Use the card as much as you like (staying within the credit limit, of course), but make absolutely sure that you always pay the full statement amount, every month, without fail.  Doing this will begin to build up a record of responsible borrowing and repayment, which lenders like to see.  It won't happen overnight, but gradually your negative marks (CCJ, etc.) will begin to diminish in importance and the "good" marks will begin to make a bigger impact.

LunaD

Ebe_Scrooge said:

LunaD said:

Myself and my husband took out a credit builder card this week I read this can help your credit rating and we both had a credit limit granted of over £1200. We of course are going to stay under the 25% and pay balances in full each month. We only did this to try and help boost our credit. I hope this works. 

I find it all very confusing as people say your credit score doesn’t matter but it must do to some degree. 

To reiterate what's already been said, your credit score makes no difference, what matters are the facts contained in your credit file.

There's no reason to restrict yourself to only using 25% of the available credit on your card - this is another myth perpetuated by the CRAs, but it doesn't matter as long as you pay in full.  Use the card as much as you like (staying within the credit limit, of course), but make absolutely sure that you always pay the full statement amount, every month, without fail.  Doing this will begin to build up a record of responsible borrowing and repayment, which lenders like to see.  It won't happen overnight, but gradually your negative marks (CCJ, etc.) will begin to diminish in importance and the "good" marks will begin to make a bigger impact.

That all makes sense thank you so much.

So if I spend say £200 on my credit card, I wait for my statement then pay it in full? Will I also pay the interest too? 

So will having this credit card granted and a good credit limit help my credit file too?