Why is my credit report bad, yet doing nothing wrong?
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Do you show on the CRA's as being on the roll - it has been known that a slight disparity between how the CRA have your address and how it appears on the roll meaning they don't report it correctly and it affects your score. Balances near the limit can negatively affect your score. You may be a great prospect for banks wanting new customers if you always pay but carry an interest baring balance, but to the CRA number generator you may get a poor score.So whats the point in anyone having a ''score'' then if it's completely irrelevant?
Seems like a pointless exercise.
In answer to your questions, yes i am on electoral role and have been for 6 years, I havent moved house, i dont share debt in any joint names whatsoever and yes i do have a couple of credit cards that are near there limit.
The big question for me is..............if your score is totally irrelevant how would you know if you were doing well/bad?0 -
You have an "Arrangement to pay", This is worse than a CCJ and a default put together. I have been told this by an IFA, 3 credit reference agencies, a mortgage broker, 2 major high street banks and a solictor.
Your credit file will be terrible six years from the last payment you make to the arrangement to pay. AP's are literally the worse thing that can ever happen to a credit file, knocking the creditor and defaulting is far better than upholding an AP.
Please listen to me, I was in exactly the same situation because I was advised that AP's are good, they are not and I've been through months of hell trying to fight my corner on this. The fight is still not over and as it stands I'm getting quoted somewhat substantial legal fee's for my solicitor to go after the creditor.0 -
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Deleted_User wrote: »That's not the case at all.
The only way that would be true is you had an AP running for more than 6 years, where the CCJ and default would have dropped off.
Yes it is. 100% I've had this confirmed by London & County mortgages, they are the best brokers in the country, plus all the credit reference agencies and a solicitor specialising in cases exactly like this.
Check your sources of information. You can get a mortgage with a default, if you have an AP no lender on the planet will touch you. I've been through all of this. It doesn't matter if you have an AP for a month or 5 years and 11 months. Just having it your file makes you "bankrupt" for 6 years in terms of how lenders see you.
If your bank says anything remotely different to that, contact a solicitor immediately as you have grounds to sue if you take out the AP based on their advise.0 -
I'm afraid it's still not true.
APs are a problem if they run for many years. CCJs are far worse.
L&C are generally regarded as one of the poorest sources of financial advice on the planet. Use a decent broker if you have adverse credit.0 -
Deleted_User wrote: »That's not the case at all.
The only way that would be true is you had an AP running for more than 6 years, where the CCJ and default would have dropped off.Deleted_User wrote: »I'm afraid it's still not true.
APs are a problem if they run for many years. CCJs are far worse.
L&C are generally regarded as one of the poorest sources of financial advice on the planet. Use a decent broker if you have adverse credit.
L & C and all other brokers use underwriters so the information they all receive about lending criteria is the same. I could ring any broker and they will all say the same thing about AP's. If you don't believe me pick any mortgage company, I promise you the answer will be the same.
I was also warned about AP's by Natwest and Santander mortgages.
You are correct about credit scores themselves though, the actual number doesn't mean anything.0 -
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L & C and all other brokers use underwriters so the information they all receive about lending criteria is the same.
I think I see where you're getting confused. Lenders receive the same data from the CRAs - but their interpretation is their own.
You may be confusing the CRAs opinion with real lending criteria.0 -
You're going slightly off here, the point I'm making is AP = Mortgage application instantly declined before a credit check is even made.
I've spent over a month contacting brokers, lenders, I even got through to an underwriter once, they all said AP means no mortgage, period.
I converted my AP into a default and am now able to get a mortgage next year, I'll be paying 4.9% but this is why I'm going after my credit card company as they are the ones who advised me to get an AP in the first place.0 -
Well, it looks like you have all the answers, so I'll leave it there.
Just remember that many people get mortgages with an AP, so if you do decide you want to be one of them, engage a decent broker (not a factory line like L&C).
Good luck.0
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