Moneysavingexpert.com/ Your Credit Rating discussion area

callansdad

First of all, if the £2000 was registered as a full default on your credit file then this will stay on your file for six years.

So even if you tried to get more money on your mortgage your bank may refuse this due to adverse credit however this will be at their discretion, it may be the case that if you have met all your previous mortgage payments on time and there is plenty of equity in your home and you are still in steady employment that the bank will meet your needs.

I would approach your bank and speak to a mortgage advisor and find out with them where you can go with this without actually applying for it just now!

Remember that the more times you apply for credit the more times you will be refused as these searches are recorded on your file and lenders begin to think you are desperate for credit.

If all else fails and provided that you are desperate for the money ... yu could approach a debt consolodation company who may lend you money against the equity in your home ... but be very wary of this as some charge extortionate rates and lots of hidden charges see the discussion on secured loans http://forums.moneysavingexpert.com/showthread.html?t=3709

Good Luck.

tami_2

how do banks do credit checks, my son has got himself into a lot of debit,behind with credit card payments mortgage well everything.HOW i ask myself did he get a loan of 5,000 pounds he's on low wages. took out a secured loan on his house. I know this is all his fault when he split with his partner he could'nt keep up with all the out goings,i am very concerned with his health mentaly and physical.thank god for 3 year old daughter she keeps him going. if the bank done a credit check would'nt all the debit show. no way could he keep up the payments.

callansdad

before i forget .. searches recorded on your file can stay there for six months ... depends on the credit agency ... why not have a look at your full credit files ... you can do this for free online using their free trials just remember to cancel your free trial immediately after you use it so as not to forget or you may be charged the full fee.

https://www.experian.co.uk

https://www.equifax.co.uk

these are the main two.

sportbeth

Not sure if this is the right place to post so apologies if I am in the wrong place!

I'm currently following the tips regarding my credit file as my partner and I would like to apply for a joint mortgage next year. I have some default info on my file from a slip up last year which i am making painstaking moves to get them to look as good as possible i.e. marked as paid.

The problem is that a few years back I had similar prolems when I first left home. My question is as follows:-

At the point of application I will have been in my address for 6 years, so is it worth working on removing old info at an old address as I understand that lenders don't check previous addresses before then.

The only difficulty is that some of the payments were made post the 6 year limit so the data is still recorded, but the address might be irrelevant by then. I have checked and they are recorded under the prior address.

Will that address drop off my credit file by then too if it is 6 years plus since I lived there?

callansdad

I would contact experian or equifax (whichever) and ask about this.

The thing is that these companies arent always that quick in removing info, so if you apply for ur mortgage bang on six years, then it may still be a couple of months before the default is removed.

Also a lot depends on the amount of the default ... if your talking about a couple of hundred qiud then it may not be a problem.

One other thing that you are entitled to do is to place a note on your file i.e an explanation of the default and the lengths you are going to, to pay it.

If you sign up to their free trials you can check your credit file right now and see what info they still have and add notes if you wish. Just remember to cancel the free trial before 30 days or you will be charged a lot ... about £60 i think

Hope this helps

ishaqmir

Hi there

i'm very confused. My credit history has been absolutely immaculate (fingers crossed) with never a late payment. I have 2 credit cards, and a small £700 loan with fixed monthly payments, which i've never been late on repaying.

I ordered my report from equifax, and looked at their scoring i was put into the RED boundary, i.e. very poor.

and then it went on to say that i should look at my risk indicators. i then look at the rest of the report and its IMMACULATE, as expected. everything is GREEN (i.e. excellent or good). there is no evidence at all to pull me into the red boundary.

so then i did the right thing and emailed equifax, and they responded by saying:

In order to determine a credit score, the population is divided into
groups, ranging from the most credit-worthy to the least likely to be
granted credit. A person's score is partly based on how that individual
compares to others within their group.

When sections within your Credit Report improve, you may move up into a new
group which is generally viewed more favourably by lenders. However, it is
possible for your score to drop as you now compare less favourably to
others within your new group. Although your score has decreased, the group
you have moved into is viewed more positively by lenders. And in time, your
score will improve as long as you keep your Credit Report in good standing.




But this has confused me, i mean SURELY, ok dont put me in the green band, but at least AMBER band? or even pink? hehe.

but yeh, i'm only 22 yet. so what advice would you give me? just keep taking out small credits and repay on time to make my scoring solid?

is this normal what they are saying? has anyone else with perfect credit history had the same experience?

thanks

Ish

MickT_4

Help help help!!!
What can we do to get a decent credit score, where have we gone wrong?
We have lived in the UK all our lives except for 5yrs when in NZ, we returned 2 years ago.
We are both in our late 30`s and and jointly we earn over 55k a year. we own 2 houses, 2 cars, no debts except for a purposly aquired cc (in order to gain credit histroy) with 3k on it.

how can we get a loan we have apllied to the Northern Rock amongst others and always get declined.

we appreciate by aplying we are redcucing our credit score, we have checked this out and it apears that you have to be in the uk fo 3 years to gain good credit.

any help appreciated

Robert_Sterling_3

The credit card company probably cannot easily and cheaply check your credit record over the past six years.

Xbigman

Any automated system will reject you because of the requirement for a valid UK address for 3 years. Try going into a local bank branch for a face to face interview and explain the situation. This can often help as long as you see someone who can over ride the system. If you just see some cannon fodder salesman you won't get any where.
Regards




X

garyclay

XBigman is spot on. The scoring system is done by a computer so as soon as you type in New Zealand it doesn't recognise the post/zip/whatever code and throws it out.

Not sure the branch will be able to help with the tightening up of the 'managers discretion' allowance but give it a go.

Otherwise you are looking at the 'sub prime' market where interest rates are higher although the scoring is done by a human being.