Moneysavingexpert.com/ Your Credit Rating discussion area

Raquel1808

Hi,

I'm currently looking into buying a house as a first time buyer. I have recently checked out my credit reports and scores on Experian and Equifax, to my suprise Experian have given me an amazing score. Equifax on the otherhand hold exactly the same information yet have given me a pretty pants score!!!

I had a loan which I settled almost 4 years ago now but I had quite a few late payments.

I'm now concerned about getting a mortgage, I'm supposed to be meeting with a mortage advisor at Abbey next week and am worried how they will perceive my credit report when doing a credit check. Not only this my boyfriend (who I am buying with) has a default from a previous finance agreement which he is now paying back through a debt company.

We have taken advice from both credit agency websites on how to improve your credit rating but wondered what else we could do and whether we are likely to be accepted for a mortgage!?!?!

I'm really nervous! Any advise is most appreciated.

tirlittan

does anyone have the number to call equifax and cancel the free credit report please?

Orfhlaith

Hi,

I have just applied for my mortgage through nationwide and received a credit rating of 4 using my home address in N.Ireland (as i have rented 8 different houses in the last 9 yrs in england). Does anyone know what exactly this means? Do Nationwide look unfavourably towards northern irish addresses when giving loans in England?
I have never had debt (other than my student loan) and used another address to get the mortgage approved but i want to know if this credit rating will follow me?

Thanks

notomonkeys

1. Defaults- irrespective of the amount or whether they have been settled ( cleared 6 yrs from date of default ) very bad
2. bankruptcy/ccj's -as above very bad
3. having too many open but unused accounts ( unused credit is as bad as having a bad credit history for some lenders-why should they lend when they see you have credit already?-and not neccessarily from them )
4. not enough credit accounts on file-(quite ironic isn't it) usually this means lenders can't really assess risk, so you will almost certainly have a low rating-to begin with anyway (have a look at the cards/loans-credit rating from the top of this page)
5. missing from electoral roll ( lenders like traceability ) 3yrs at an address would be considered reasonable
6. regular payments and decreasing balances (lenders like this)
7. regular use of credit facilities (lenders like this also):rotfl:
8. missed or late payments- it may be best to speak to the lender direct to discuss reasons for missed payments before applying for credit
9. too many credit searches in too short a time (this is at the discretion of the lender NOT the credit reference agencies)
10. as 8. above but with msis-spelled names or incorrect address or incomplete/incorrect credit history filled out on lenders forms.-sets alarm bells ringing

Generally speaking there are just so many factors involved in a lenders credit rating /selection criteria .
It might be a good idea to research your lender first- e.g. what credit reference agency they use or their lending criteria or for the product you are applying for.

Anyways, keep up the good work folks.

Snazella

I hope someone can help!
I have tried various credit "things" over the last three years and been turned away even for catalogues! But then recently I realised I needed a new car as my existing car is falling apart and costing me a fortune and went to buy a new one! Surprise, surprise the finance was declined so I got my credit report from Experian......and to my surprise I found an Egg loan for £16k showing as defaulted and unpaid even though it was cleared in Marck 2007! I have spoken (quite loudly!) to Egg and they will rectify the situation but is there any way I can claim compensation as they have "smeared" my credit for the last three years???

paddy1001_2

Hi all,
I recently applied for my credit reports with both experian and equifax today. The experian one was correct with any details they had on my and my credit history but the equifax report showed I had a finacial association with an ex girlfriend, the relationship ended over 4 years ago and the joint account we hd set up was closed with no defaults or monies owed at all. Is all I have to do in this case apply for dissociation?

The other problem with the equifax report is regarding a current account I have, it is showing up to six defaults per month over a period of six months or more last year, there were absolutely no defaults on that account either and I have the statements to prove this, in fact the only thing to come out of that account at the time was one direct debit per month to nissan GB finance which is also listed on the same equifax report as being 100% up to date every month and now cleared.

Sorry for the long post but any advice on what I need to do to sort this out would be greatly appreciated, I have contacted equifax but guess I will also have to contact my bank, would this help?

Thanks
Paddy1001

maggiesden

My DH has a loan with Blackhorse and got his first copy of his credit report from Equifax.

Can anyone tell me whether it is common practise when Blackhorse updates Equifax every month, that they show the outstanding balance of the loan loaded with all the interest?
When DH took the loan out in 2007 it was for £21,000 over 10 years and on his report it's showing the current balance owing as £27,700 and he is update with his payments, looking at the other loans he has they show the current balance correctly without all the interest loaded on it.

Thanks in advance

ladyj83

Hi,

In 2008, I made the biggest mistakes of my life and got myself into quite a bit of debt. Ever since, I've been trying to improve my credit score (I have only missed one payment). I've gone from very poor credit score to fair and I'm trying to get to good (880 or higher). I currently use 73% of credit, but I am making additional payments as and when I can. I regularly check my score/report with Experian.

Ideally, I want to consolidate my debts into a personal loan with the HSBC (my bank) as I get a preferred rate due to my HSBC Graduate Advance account. Currently, my score is 849. I know that my credit score with the bank is good, so it's just the one with Experian that I'm worried about. The factors that Experian say are having a negative effect are:

1. You have several credit agreements (excluding mortgages), and the outstanding balance is high
2. You are not on the electoral roll (registered to vote) at your current address (I am on the electorall roll, as I have checked.)

I closed a Next Directory account last week in order to improve my score. If I can pay off store card and close the account do you think this will help to increase my score (the outstanding amount is pretty low in comparison to the other accounts)? I really want to consolidate everything within the next two months.

I'd really appreciate your advice, because I feel like I'm fighting a losing battle.

Thanks.

BLT_2

Watson wrote: »

Out of interest, is it known how Experian's credit score description (Very Poor, Poor, Fair, and so on) is arrived at?

My own credit score is 859, which on their scale of 1 to 1000 equals, fairly obviously, 85.9%. They describe that figure as "higher than 50% of UK consumers applying for credit". And yet the band I'm in is only "Fair".

Now I don't suppose that credit companies and banks pay much attention to the label; surely they just go by the figure? But nonetheless, I feel slightly put out to be no more than Fair.

Not an earthshattering matter, I realise, but it made me wonder.

Watson

The way their system works makes no sense to me. I had got myself into a financial pickle, I owed circa 30k, 3 credit cards, 3 loans etc etc and yet my credit rating was 898, based upon my never missing a payment I guess. However it beggars a question as to how an individual with that amount of credit can be assessed as good.

I now have a credit rating of 999 having paid off all the loans and retaining just one credit card, with a limit of 6,000 and an outstanding balance of 900.

However it should be pointed out that the experian credit card score means absolutely zilch. Whilst I have a score of 999, having moved 3 times in the last 2 years due to work doubtless I am seen as a risk by lenders. Experian are very cunning in wording their credit score and stating that it is 'an indication' - This thread is rife with individuals with scores of 999 who cant even get a mobile phone contract.

2009 (AA Loan: 9,000, (AALoan: 2500, RBS Loan: 600, Halifax Credit card: 8500, Barclays Credit Card: 5800, RBS Credit Card: 500, Bank Overdraft 4400) - Total 32,900

2010 (Credit Card 900, Loans: 0, Overdraft: 0) - Total 900

sabrina19

Summer 2009 i done something silly and took out a personal loan for £1000 from HFC Bank aka Beneficial Finance. I am sure that i signed an agreement stating that id be paying a maximum of £190 interest for a repayment period of 1 year (which is not the case :mad:) I had a number of problems with them regarding repayments, which lasted about 5 months! The problem was, that they ha taken my account details for DD payments inmcorrectly. Prior to taking out this loan, my credit score was fair......now, i cannot gain credit from anywhere!!

I can only think, that due to the DD issues that occurred, (missed/late payments in their eyes) my score has dropped thus making obtaining credit extremely difficult.

If this is the case, seeing that the problems were on HFC's part, is there any way that any defaults or loss of points can be reverted?

thank you