Moneysavingexpert.com/ Your Credit Rating discussion area

JFC_2

Im really shocked after discovering my credit rating is 462!! I have settled accounts, and only a mortgage, although my credit cards arent cancelled, there is nothing showing as being owed on them. I am showing as being late paying £4 to a mail order company (which I am not)...I am really confused as to why my score is so low. I have no overdraft, loan or debt so why 462? should I cancel my credit cards or is it the £4.00 arrears which isnt real that is lowering my score?

JFC_2

I have received email correspondence confirming an error on my report and saying they will remove the arrears from my credit file. Do you know if this is likely to increase my credit score immediately or will I have to wait a while for the removal to take affect?

I also have corresponded with Equifax who advised that banks and lenders have their own scoring system and never see the score that the credit agency have allocated. They just see the report information and base their own score on that.

I didnt realise that at all, so what one bank finds a positive (like a high ratio between owed and available balance) another may feel like you already have too much available credit...basicaly you really cant tell what your score will be until its too late.

I noticed that I have been searched by a mail order company in February this year (without my knowledge) anyone know if this is something I can also dispute. I am aiming for a really high score and was so upset to see my meagure 462

jamesd

You'll need to wait for the removal to happen before it'll improve.

Lenders can choose to use the scoring system used by the credit reference agencies, doing that and setting individual scoring rules is one of the services that credit reference agencies offer. Or lenders can use their own or a mixture of the two.

You can ask the mail order company why they searched your report. They should have had the fact that they would search somewhere in the terms and conditions before you opened an account with them, if yo did.

Devilish_2

hi everyone, didnt know where to post, so i thought i'd try in here :P

Lately - i.e. last few days, i've been thinking about taking out a reasonably sized loan for getting a new car, replacing an incredibly old one - that's on it's last legs - as the HP options were too high.

Now i've finished an IVA recently, (may 20th - its OVER 6 years old) and having a decent deposit I had in cash to help and keep payments well down, was this little problem i've encountered.

It's the CRA's. As usual.

Equifax i've got a score of 521 (not that it means buggar all) and a perfect history, no CCJs showing anymore, no defaults, nothing.

Experian i have no defaults with either, and a fair score (850 ish) and 2 searches in the last year. The problem here is my IVA is still on their file! Although i've disputed it, and added a notice of correction stating so, I presumption is - either though it's over 6 years old, and completed, that this incorrect data will still cause instant refusal. Any thoughts?

Tixy

Devilish - I think it would be an instant decline. Have you done the credit file clear up as recommended on the IVA section of the forum? if not you could try that.

Have you got any current credit accounts showing at all now? usually people find they have to start rebuilding a positive credit record with things like subprime cards.

Credit Reference File Clean Up Post IVA I've got a feeling it might not be totally up to date but hopefully it might help you. If it doesn't quite make sense you could pm fermi (who I think is planning to update it anyway) or post on the IVA forum for some advice on sorting your credit file.

Devilish_2

Thanks Tixy for the reply.

Ive done all clean ups.

My file is clean - totally - on both bureaus, IVA is gone, (from equifax) and is 6 years and 3 months old.

no defaults either, credit card being paid for ages, green lights all over the shop.

I cant do anymore. Ive run into a brick wall trying to remove the IVA from experian, it's turned into a blame game with the insolvency service. I feel as soon as it's gone - and as it rightly should be - i should be free to apply whereever?

chemicallymark

Hello,

I'm looking for some advice please.

I am looking to buy out my housemate from the mortgage.
I am looking to transfer the mortgage into my name and pay him off in cash for his share of the equity.

I need a large chunk of cash to do this. I have savings but will need to take a loan to pay the rest.

I checked my credit report with Equifax and it looks OK. There was one late payment in 2009 on a credit card. The card was cancelled in July 2011 after balance settled. I did not realise at the time this affects credit.

I have 2x credit cards both with good credit and good history, 1 with a high credit amount with a 13 month balance transfer interest rate of 0%. I increased the limit recently, which I did not realise at the time affects credit rating.
There are also a number of items I need to buy now which will take up a good chunk of my credit card balance.

I'm looking to get a loan of around GBP15k (this with savings) will pay off the equity and transfer fees / lawyer fees etc. etc.

So here is the crux.

I will be subject to a credit check before the mortgage gets approved in my name only.
I will be subject to a credit check before the loan gets approved.
And if I buy a bunch of stuff now then having a large balance on my credit card is going to affect this.

So which is the best way of dealing with this?

Do I
1. Wait for the mortgage approval
2. Apply for a loan
3. Put items on my credit card

Or apply for the loan 1st? Or is there a better way potentially?

I guess it is important to note that if the mortgage is approved and the loan is not then I will not be able to buy the house.

I guess credit card usage should be last on the list?

I am quite confused about the best way to proceed.
Thanks.
:question:

J3nesis

I recently got turned down for a loan with Natwest and a Barclaycard (I know, I know, stupid to apply for two things at once). When I phoned to ask why, of course they wouldn't tell me the details but simply told me I'd failed a credit check.

I'm 23. I have never defaulted on any payments or bills of any sort, I've never missed or made a late payment. I've never had a loan, apart from the government student loan and an agreed overdraft (which I did go into in my student years). I have a credit card that I make more than the minimum payment on every month on time.

So why have I failed the check?? I did wonder if it's to do with my address. I've been in my current flat for about 4 months, I'm on the electoral roll here and my bank registered address is here, so that's hunky-dory. However at my previous flat, where I was for 18 months, I wasn't on the electoral register (I didn't know what it was) and I kept my bank address registered at my parents' house. Before that flat I lived with my parents.

When applying for credit and they ask for previous addresses, should I give my previous flat or my parents' house since that's where my bank statements went? Could that be the reason I was declined?

J3nesis

Forgo to mention, I have applied to see my credit reports with both Experian and Equifax, but both of them said they needed further information or to do further checks. Equifax want me to phone them on Monday to "verify my details". Is this normal? With that and my rejections, could someone be trying to steal my identity?

boyleyuk

boyleyuk wrote: »

ive just paid of my last 2 defaulted accounts, and have 2 ongoing credit arrangements without any arrears or missed payments

My credit score with equifax is 191, how long/fast will my credit rating take to go up back to normalish

Just a quick update this is now a thing of the past for me, credit rating is now excellent so glad to finally get those defaults of my credit report

"PLEASE NEVER USE CREDIT CARDS AS A RESOURCE TO LIVE ON"