Please help with a strategy for correcting/improving Credit Rating?

walmer3

hi - I'm hoping you experts out there can help me. This is a bit of a long story, I'll try to make it as brief as possible.

I sold my house in October and as soon as the cheque was cleared I systematically paid off a load of debts/loans/credit & store cards. I did so by calling to request a settlement figure then arranging for transfers or bill payments online, either by a bill payment request from my own account or (where relevant) on the lender's website. A car loan I had with Cahoot was one of those where the transaction was actioned on their site (as opposed to through my own bank account).

I then cancelled all of the relevant monthly direct debits from my own bank account so that I wouldn't risk over-paying.

I had to spend two months in temporary accommodation (it won't surprise many of you to know that the reason was we were waiting to get entry to a new-build house which ended up delayed!). I had no web access but all of my mail from my old address was redirected.

When I finally got into the new house last week and got web access, there was an email from Cahoot saying to contact them urgently "following our attempts to contact you by email and letter". I don't recall having received a redirected letter from them at all, and of course wouldn't have received emails. It turned out that the web-based repayment of the loan hadn't gone through, as it had been refused by my bank. I paid the funds immediately over the phone using my debit card.

Having spoken to my bank today they have told me it would be standard procedure to refuse any request for payment made via the Direct Debit arrangement, as the Direct Debit had been already cancelled. My mistake was in not realising that an application for payment would be made via the DD details rather than as a separate independent transaction.

It has now come to light that this has affected my credit rating - which was previously A++. I can't blame Cahoot for registering the apparent problem, of course - but it was a genuine lack of understanding (on my part) of the procedures and processes which has caused this.

I'm wondering what the best course of action would be to repair the damage that this issue has caused. It seems ironic that the very act of paying off debts has caused me problems with a rating that was previously excellent! I'd be so grateful for anyone's advice. Thanks!

pink_muppet

I should imagine it is just going to be a time thing, what exactly is showing on your credit file that cahoot have placed?

Plus if you have ust paid a load of stuff off the last thing you want is to be taking on more credit so forget about your credit rating and concentrate on just enjoying your new home, it will recover in a year or so unless they have registered a default

bathgatebuyer

I've checked my own credit score today and mine ahs went from 435 in September, to 541 now. Things have been getting paid regularly, and with no defaults or anything, I'm hoping it's just a matter of time before things get sufficiently good that I can move from the 'VERY POOR' category that I'm in at the moment to the 'STILL CRAP BUT MARGINALLY BETTER' category!

Check all 3 credit reference agencies to check that the information held on you is accurate, and if there's anything that isn't, contact the company placing the information to the agencies and make sure it's corrected.

Other than that, I've found that time is a fantastic healer.

macca_golf

Hi,

You can request a copy of your credit report. You then can write an explanation and submit it to the experian as to why this loan went unpaid and it will be seen when any credit checks are done in the future.

Hope this helps

Matt

walmer3

Thanks all for your responses. I've requested a copy of the report but not received it yet. And I think I will have to write to the credit ref agencies as suggested - ideally we wouldn't want to be taking on more credit but there's an addition to the family due imminently and this is necessitating the purchase of a car...!

roonie_222

hi

i signed up for EXperian through the topcashback website as suggested on moneysavingsexpert's article for free. but once registered, anything i click on says ill get charged £5.95 to view? i thought it was meant to be free for 30 days?

can someone please tell me what im doin wrong?

thanks