Moneysavingexpert.com/ Your Credit Rating discussion area

Jenny05

Hi!

I'm considering applying for a desperately-needed car loan shortly so - worried about my credit score and large credit card debt (always serviced but still large) - I decided to check out my credit ratings at both Experian and Equifax.

They seem to have exactly the same information about me but the Experian score has come out as 620 (ie poor going on very poor) while the Equifax score has turned out to be 470 (ie good going on excellent). I'm a bit bemused - and worried that they have such a discrepancy!

How often are the scores actually updated? Is it worth my while taking some measures to 'improve' the Experian score (ie getting rid of some credit cards which I keep for everyday use and pay off every month). Or will that take ages to show up on my file anyway?

Or should I just pray that whoever I approach for a car loan does their search via Equifax?

Has anyone else come across such wildly differing scores?

Little-eowyn

I applied for a loan with Clydesdale Bank - listed at 5.7%. When the offer came back it was 21.9% which I decided not to take.

My credit score was 99.9 but now with the credit check on it I was refused for a different loan. We've been able to pull together the cash to pay for my new car but how can I avoid this happening in the future when the APR advertised is not the one offered but the credit check made means I can't shop around?

Fairway871

Little-eowyn wrote: »

I applied for a loan with Clydesdale Bank - listed at 5.7%. When the offer came back it was 21.9% which I decided not to take.

My credit score was 99.9 but now with the credit check on it I was refused for a different loan. We've been able to pull together the cash to pay for my new car but how can I avoid this happening in the future when the APR advertised is not the one offered but the credit check made means I can't shop around?

Although it is not that clear and will perhaps change from lender to lender, you are best asking for a quotation rather then applying. Apparently such quotations do not involve an entry on your credit scoring. ( Though I would not bet money on it:))

Fairway871

Jenny05 wrote: »

Hi!

I'm considering applying for a desperately-needed car loan shortly so - worried about my credit score and large credit card debt (always serviced but still large) - I decided to check out my credit ratings at both Experian and Equifax.

They seem to have exactly the same information about me but the Experian score has come out as 620 (ie poor going on very poor) while the Equifax score has turned out to be 470 (ie good going on excellent). I'm a bit bemused - and worried that they have such a discrepancy!

How often are the scores actually updated? Is it worth my while taking some measures to 'improve' the Experian score (ie getting rid of some credit cards which I keep for everyday use and pay off every month). Or will that take ages to show up on my file anyway?

Or should I just pray that whoever I approach for a car loan does their search via Equifax?

Has anyone else come across such wildly differing scores?

According to some posters, Credit scores with the likes of Experian are worthless anyway. I just get the imprssion that if its good they are ignored but if its bad, well, thats a different story. Either way it does not stop the lenders paying good money to the Credit Score Agencies to access their information:eek:

PaulW922

notomonkeys wrote: »

Hi,

What a lot of creditfile sites forget to mention is that even though the default drops off, if the account is still 'live' i.e. arrangements to pay, your default may drop off but the following credit history will still remain.

eg. if you default in 2005 and make arrangements to pay and close the account in 2010, then even if the default doesn't show in 2012 the account details will still be available until at least 2016 showing an arrangement to pay .

I'm sure someone can correct me on this if i'm wrong but this is my understanding.


I would always opt to pay back quicker if i can afford it.

Actually that is incorrect. Once an account is defaulted, it stays on your file for six years from the default date. Then it comes off even if you are still,paying the debt off.

notomonkeys

Hi Paul,

I agree that the Default drops off.
My point is actually in reference to the account still showing in credit files and possible arrangements to pay rolling past the 6 yr cutoff (this might be a mortgage for example)

Many people think that once the default drops off (this is a good thing) they are in the clear and that their credit rating will dramatically improve. However Arrangements to pay would still not be seen as good things by lenders

Every little helps tho.

softly softly catchee monkey

fermi

When the default is removed ALL details of the account are removed with it.

The default, payment history, APs, settlement markers.... The lot.

Anyone checking your file would see no trace of the account at all.

zaynab

the account information on credit report shows 0 balance even for my current account where i have my salary credited and other dd. Why is that?

fermi

zaynab wrote: »

the account information on credit report shows 0 balance even for my current account where i have my salary credited and other dd. Why is that?

Balances reported on current/bank accounts are overdraft/overdrawn balances.

So if you are OD it will show how much. A credit balance would mean you are £0 into your overdraft/overdrawn, so it would report as zero.

notomonkeys

OK,

Defaults.

So as i understand it..
If i were to default on my mortgage, it would all disappear after 6 years and there will be no trace of my mortgage or mortgage payments after this on credit reference sites.?

Excuse me for being obtuse, as it's too late for me to cry about spilt milk- my house is now gone, but one of the factors in my decision to give up was just this point. i believed that any arrangements to pay would be available to everyone even after the default were removed and that this would affect my credit rating far longer than the 6 yrs.

hohum...lolol