What your credit score really means

Awesome!

Hi All,

I'm not sure if i'm in the right place to ask this question so apologies in advance, if so.

Cut to the chase, basically i've got myself in a royal old mess financially. Combination of relationship break up, everything that comes with it & burying my head in the sand not facing the problem head on, hoping it would go away. Ultimately all to my own doings. I'd sort of accepted that this was it for me. Couldn't really see light at the end of the tunnel so wasn't willing to try. So as long as I did what I could for my Daughter, that would be enough. However, a recent turn of events has given me the kick up the backside I needed and now i've had that wake up call. I'm at a loss as to what the extent really is and how do I go about correcting it.

The two debts in question have now both turned into CCJ's (June). The first is being repaid via Attachment of Earnings (Not ideal but final payment comes out of my wages this month) Second I was threatened with attachment of earnings but challenged it as I returned the CCJ form agreeing to pay the suggested amount but am yet to hear a response.

What i'd like to know is, is it possible to rebuild from this or will this three year stint of ignoring all of my problems haunt me for the rest of my life?

If there is a possibility to rebuild, how do I go about doing it? What are the steps required?

Any responses, suggestions would be greatly appreciated.

Many thanks in advance.

Kind Regards,

Dan

DCFC79

Many Thanks for the reply

It varies month to month. I'm not overdrawn and don't have any sort of overdraft attached to it.

Other than the two that I have received CCJ's against, I've not had/got any other lines of credit.

Would you suggest one of the companies who 'specialise' in bad credit i.e. Vanquish (I think that's what they're called) or would that do more damage than good?

Thanks,

Dan.

Your credit rating explained
A credit card
It is important to check that the data lenders rely on is accurate
No-one has an automatic right to credit.
Individual lenders use their own criteria when deciding whether or not to lend you money, but they rely heavily on data supplied by credit reference agencies.
BBC News explains how they work, the information they hold, and how you can check and challenge your credit file.
What is a credit reference agency?
Credit reference agencies are commercial companies which compile information from a number of different sources, including the electoral roll, county court judgements and financial institutions.
They sell this information to lenders and other service providers in the form of credit reports which help them to decide whether to grant an application for a loan, credit card, or provide another financial product.
The three credit reference agencies operating in the UK are Experian, Equifax and Call Credit.
What information do they have?
Agencies hold personal information taken from previous credit applications. This includes your name, date of birth, current and recent addresses.

DATA HELD BY THE AGENCIES
Name and date of birth
The electoral register
Credit payment history
County Court judgements
Bankruptcy and administration orders
House repossessions
The main part of your credit report is your credit history. This lists your credit accounts, the date they were opened, the credit limit or loan amount, and whether you have missed any payments.
Account details stay on your report for six years after you settle a loan or close a credit card. However a credit card which you no longer use but have not formally closed will remain permanently.
Agencies also record a credit search every time your credit report is looked at, for instance when you apply for a loan or buy something with interest free credit. These searches stay on your credit report for up to two years.
Your file also records the name of your current account provider, but will not show further details of your account unless they are relevant for the purposes of granting further credit - for instance if you are in unauthorised overdraft.
Also included is public record information such as county court judgments, house repossessions and bankruptcies. Such information usually stays on your credit report for six years.
Credit reports do not include information about savings accounts or personal information such as religion, political affiliation, medical history, or criminal records.
The information on your credit report is used to generate a credit score, but this score is not part of the report itself.
What are lenders looking for?
As well as asking you for details of your income, employment status and assets, lenders use information from credit reference agencies to assess how well you have handled credit in the past, and therefore how much of a risk they are taking by lending money to you.
The agencies check your name and address against the electoral roll, so you may have problems if you are not on it.
You may also struggle to borrow money if you have never taken out credit before, or if you already have what the lender believes to be too many loans or credit cards.
There is no "blacklist" of people who will not be given credit - each lender analyses the information according to its own rules, so you may be turned down by one company but accepted by another.
However, beware of making multiple applications, because many lenders take a negative view of a large number of credit searches in a short period.
What can you do if you are refused credit?
No lender has to provide credit to you. It can turn you down altogether, offer to lend less than you requested, or charge a higher rate of interest.
However, you can ask it to reconsider if it made its decision just using a computerised credit scoring system or if you believe you have further relevant information.
The lender does not have to provide a detailed explanation of its actions, but it must tell you the name of the credit reference agency which supplied information about you.
Checking your file
Even if you have not been turned down for credit, it is a good idea to check your file regularly - perhaps once a year - to ensure the information held is correct.
Lenders use all three agencies so you need to contact each of them.
Under the Data Protection Act, credit reference agencies must provide you with a "Statutory Credit Report" for a fixed fee of £2. You need to provide your full name, date of birth, current address and former addresses for the previous six years.
The statutory report contains your basic credit file and should be posted to you within seven working days although agencies can ask for further proof of your identity before supplying the information.
Each agency will provide more detailed information - including in some cases instant, continuing and online access to your file - for a higher fee.