Experian credit score

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smcg2011
smcg2011 Posts: 13 Forumite
in Credit file & ratings
Hi I cleared all my credit cards last month and tried to open a new bank account but got rejected due to my Experian score the bank said.

Experian is still showing I owe about Ten grand in credit cards even though I don’t. Will next months report show me in improving. Right now I have about 30k in savings/bank balance and no debt at all yet Experian score is 496 and marked as very poor ???

How can I improve this quicker and will it improve now all my credit cards are cleared ??

Thanks

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  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
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    edited 6 December 2018 at 6:13PM
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    Have you ever had any late payments or missed payments?
    Do you have any defaults, delinquent accounts or any other negative markers?
    Are you on the ER?
    Is all the data on your Experian report correct or are just saying it is one month out of date?

    Don't worry about your score as lenders neither see it or use it :) The bank with whom you tried to open an account with, would only have used the data in your credit file, added to any data you supplied in your application.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • smcg2011
    smcg2011 Posts: 13 Forumite
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    Yes sadly I’ve had a few missed payments here and there over the years but no serious things like ccj delinquent accounts etc. No some are updated and others are not. Yea it’s correct but just out of date . Some cards I’ve cleared weeks ago still saying I owe a balance.

    The thing is I want a mortgage in the next 12 months but now I’m worried this will be impossible??

    Yea on the ER

    I know the “score” means nothing but I’m worried whatever info the bank got from Experian whether it’s a report or a very poor rating will that stopped me opening a current account will definiatly stop me getting a mortgage.

    What can I do to improve this? Is using small amounts on credit card and paying off each month going to change my rating entirely in 12months?
  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
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    The missed payments are a big negative, although the impact reduces over time.

    Which bank account did you try and open? Maybe you went for an account that requires a perfect (or near-perfect) credit account history.

    Careful and responsible use of your credit cards is always a good thing. Just make sure you only spend on items that are within your monthly budget. Groceries and travel costs for example. Then pay off the statement balance in full every month. Using your card accounts like this will impact positively on the way you are credit scored by potential lenders.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    The banks will “score” you using the data held by Experian and their own algorithms - not the made up CRA score.

    If you’ve only just paid off a load of debts then when the lenders next update the CRA’s it will be shown on your credit file.
  • smcg2011
    smcg2011 Posts: 13 Forumite
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    It was Danske bank as I live in Northern Ireland and they seem to be the only ones lending over here (going by friends and clients experience)

    I have available credit card balance of about 20k should I cancel these or leave them with no money owed on them?

    How soon do missed payments least matter? A few months or years?

    Is there anything else I can do to improve it quicker
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    The impact of the missed payments depend on the lender. The more prime, the more they matter.

    Keep your cards and make sure you use them regularly.
  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
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    smcg2011 wrote: »
    It was Danske bank as I live in Northern Ireland and they seem to be the only ones lending over here (going by friends and clients experience)
    Maybe you applied for an account that includes an overdraft? They have seen the missed payments and made the application rejection. Why do you need an account that is lending when you already have plenty of credit available on your cards? Maybe there was an affordability check as part of their 'credit scoring' too...
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • smcg2011
    smcg2011 Posts: 13 Forumite
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    No I just applied for a current account with them because I want to apply for a mortgage with them in the future. I specifically said I didn’t want a credit card or over draft with them
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    You need patience.

    So no negatives on your credit files ?

    As mentioned no 1 but you can see your score, its your history your wanting to improve.
  • Zoee
    Zoee Posts: 61 Forumite
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    smcg2011 wrote: »
    Hi I cleared all my credit cards last month

    Experian is still showing I owe about Ten grand in credit cards even though I don’t.

    Will next months report show me in improving.

    How can I improve this quicker and will it improve now all my credit cards are cleared ??


    The date you cleared probably lapped over and so missed the monthly update deadline. For example: you cleared on 23 Nov and your credit file updates on the 22nd of each month.

    Do you recall the date you cleared? Check back in 30 days after cleared date and see.

    No current dealings with Experian but certain the next update should show your £0.00 balances.

    If not, showing as £0.00 this month, there should be a credit correction section inside your file to fill in and send explaining you've paid owed balance in full.

    I have learnt over the years that one way of improving credit rating is to take out small credit ie pay with a credit card or credit something from a catalogue and pay it off in full the following month. This shows a creditor that you can repay should they loan to you. Anyone can promise "I'll pay you back" and because lenders dont know you from Adam your word is not a strong indicator compared to seeing on your file that you've paid other creditors.

    There are cases where a person applied and had paid off his mortgage, no credit card or catalogue debts and big savings in the bank - similar to yours. He went to get a contract mobile phone, showed all his ID and was refused!

    The reason they gave was there was no credit indicator on his file to show he'd pay his monthly contract phone bill! (Tried searching the story link for you to read and couldnt find it - was on WatchDog I think)
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