Improving Credit Rating - Please Help

garrys_2

Hello,

A few years ago as a teenager I got into some trouble finanically. According to my credit report (from checkmyfile.com) my credit score varies from about 400 to 535 depending on the credit referency agency.

I defaulted on a small loan in May 2005 and then immediately settled the balance the following month. I also defaulted on my credit card in May 2005 and the remaining balance (about £1000) was passed to a debt collection agency. Since the debt collection agency took over I never missed a payment until the balance was settled in April 2007. My credit report is showing a 'Default' status for every month between May 2005 and April 2007. Is this correct?

In short, I haven't missed a payment on anything in over three years but I still can't even get so much as a Vanquis credit card (39.9% APR) or a mobile phone contract.

Is there anything I can do to get back on the credit ladder and does anything I've mentioned sound like it might be in error? I'm open to any suggestions - I've even considered writing to the lenders concerned and asking them to remove the default statuses since I never received a notice of default at the time.

I'm not a homeowner but surely somebody somewhere would be willing to give me some credit after three years?!

fermi

garrys wrote: »

I also defaulted on my credit card in May 2005 and the remaining balance (about £1000) was passed to a debt collection agency. Since the debt collection agency took over I never missed a payment until the balance was settled in April 2007. My credit report is showing a 'Default' status for every month between May 2005 and April 2007. Is this correct?

Yep. Although you made subsequent payments, once an account is defaulted it's status remains that way.

This example from Experian demonstrates how even when the debt has been marked as "settled", the most recent status history marker remains an "8" indicating a default.



It might be worth you entering a notice of correction explaining the default. That will often halt automatic credit scoring, meaning that a decision would be passed to a real person.

garrys_2

I'm beginning to think that all this credit reporting malarky is !!!!!!!!. I just got up-to-date credit scores from Equifax and Experian. Experian gave me a 836 ... Equifax 318! I can understand there being a bit of a discrepency but Christ.

Fermi, have you ever known anybody who got default notices removed from their credit file by the lender because the lender never informed the customer?

jak

It's all a bit confusing isn't it?! I'm having problems too, so i'll be reading this thread with interest!
Good luck
J
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Burlesque_Babe

the scores mean nothing and aren't used by lenders as part of their decision - they all have their own in-house credit scoring point pass/fail totals.

The scores are just a finger in the air/see which way the wind is blowing 'guide' from the credit agencies.

The important thing is the status of each account on the file.

DRS1ONE

I have been looking into this recently. The score is calculated using different methods drawn up by the credit agencies. One agency will say you have 999 as your credit rating and then another 500. This is because you might owe allot but doesn't take into account you have never missed a payment on anything.

IGNORE THEM THEY ARE USELESS. Lenders create there own score for you. All you can do is pay on time, keep each account with a satisfactory status.... and then hope for the best.

DRS1ONE

O it's also a way for the agencies to make money out of you, as I believe you have to pay for your score....it's not Free.

jak

So if you have satisfactory on every account- is that the best you can hope for?
Sorry to hijak!
J
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