Why the declines?
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rabbit_burrow
Posts: 293 Forumite
Hi everybody,
After checking Experian (statutory report through post), Equifax (free trial) & Noddle, I am not totally sure why I have been declined for some applications.
My Experian report, and my noddle report look fine. Loads of greens/0's. I do have 3 number 1's (where I've paid literally a week late) over the last 4-5 years on one of my accounts, but they are never together. I honestly don't think that is affecting it too adversely as the company itself has increased my limit in the past.
My Equifax report shows a default that will drop off in a few months (could it be this, even though it is settled and was *almost* 6 years ago?), the date is wrong, it was defaulted almost a year after it should have been, but there isn't much point in disputing it now due to the fact that it takes a few months for them to sort out and it's due to 'drop off' in 4 months time anyway.
Equifax also shows my mortgage as 'agreement to pay' every month since March 2010 (the noddle & Experian show it correctly as up to date though) - could it be this that's an issue?
The only other thing I can think is because I have 2 credit cards (1 which I cannot use, but shows as an account as I still have a balance that I'm paying off), 1 store card & 3 catalogue accounts, plus my mortgage. Would it be because the amount of accounts? Should I close some?
The credit limits make a combined total of £4700 including my small overdraft & the £500 credit card that I can't use.
My total debt, which will be cleared over the next few months after my hols, is around £1100 (not including my mortgage - that's next on my list). My income is just over £24k.
Is it the data on Equifax that is affecting my credit? Or is it the amount of accounts I have open?
I'm not panicking over it, but it would be nice to have a reward credit card at some point.
After checking Experian (statutory report through post), Equifax (free trial) & Noddle, I am not totally sure why I have been declined for some applications.
My Experian report, and my noddle report look fine. Loads of greens/0's. I do have 3 number 1's (where I've paid literally a week late) over the last 4-5 years on one of my accounts, but they are never together. I honestly don't think that is affecting it too adversely as the company itself has increased my limit in the past.
My Equifax report shows a default that will drop off in a few months (could it be this, even though it is settled and was *almost* 6 years ago?), the date is wrong, it was defaulted almost a year after it should have been, but there isn't much point in disputing it now due to the fact that it takes a few months for them to sort out and it's due to 'drop off' in 4 months time anyway.
Equifax also shows my mortgage as 'agreement to pay' every month since March 2010 (the noddle & Experian show it correctly as up to date though) - could it be this that's an issue?
The only other thing I can think is because I have 2 credit cards (1 which I cannot use, but shows as an account as I still have a balance that I'm paying off), 1 store card & 3 catalogue accounts, plus my mortgage. Would it be because the amount of accounts? Should I close some?
The credit limits make a combined total of £4700 including my small overdraft & the £500 credit card that I can't use.
My total debt, which will be cleared over the next few months after my hols, is around £1100 (not including my mortgage - that's next on my list). My income is just over £24k.
Is it the data on Equifax that is affecting my credit? Or is it the amount of accounts I have open?
I'm not panicking over it, but it would be nice to have a reward credit card at some point.
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Comments
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The default is likely not helping matters at all. Most credit providers search EQ or EX, or both. Rewards cards generally require a pretty well managed history.
1100 is a drop in the ocean debt wise, unless you meant 11000.Oh, you wee bazza!0 -
Sounds like it might be the default thats causing problems.
a few late payments wont make too much difference on thier own, and your level of credit is not that high.
might be best to wait 4 months for the default to be gone. This will also reduce the effect of the current searches you will have0 -
That AP on Equifax will definitely be causing issues. Write to your mortgage provider *and* raise a dispute with Equifax about this.
Other factors to consider are:
Have you opened any accounts in the last six months?
Have you more than two searches for credit in the last six months?
Is your oldest credit under over 36 months old?
Have you changed job, bank, or address in the last 18 months?
If you answer yes to any of the above, this will in itself be another negative factor.Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
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The default is likely not helping matters at all. Most credit providers search EQ or EX, or both. Rewards cards generally require a pretty well managed history.
1100 is a drop in the ocean debt wise, unless you meant 11000.
Definitely meant £1100 (not including mortgage) - £700 on catalogue accounts, £400 on cards. It is a tiny amount for most people, and I would normally pay it off within 6 weeks, but holding onto money at the mo ready for my holiday.0 -
The arrangement to pay will most certainly be causing an issue.
This is where you have agreed a reduced repayment with a creditor and you are technically in a rolling default. If this is not the case as others have advised raise a dispute and get it corrected.0 -
Thank you for your replies.
I did suspect that the AP and the default might be major factors. I'll sort out the AP thing (already sent a query to Equifax the other day - awaiting a response. I will draft a letter today to send to HSBC).
Looks like waiting until the start of next year is a good idea.
X0 -
The arrangement to pay will most certainly be causing an issue.
This is where you have agreed a reduced repayment with a creditor and you are technically in a rolling default. If this is not the case as others have advised raise a dispute and get it corrected.
It is definitely an error. The EX and CC show the actual term and payments due each month (and I can use my mortgage statements and bank statements to back up how much I have paid), along with being up to date. It is only EQ that is showing incorrect data.0 -
As a credit underwriter what would cause the issues would be the 'Agreement to pay' and to some degree the default. Although personally it depends on size and how long ago it was, nearly 6 years ago i wouldn't worry about.0
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As a credit underwriter what would cause the issues would be the 'Agreement to pay' and to some degree the default. Although personally it depends on size and how long ago it was, nearly 6 years ago i wouldn't worry about.
Trev you being an Underwriter I would've thought that you'd know that AP is arrangement to pay not 'agreement to pay'.
Unless I'm wrong.0 -
I've contacted both the lender and Equifax to sort out the error. How long does it usually take to be adjusted on my file? I'm assuming (hoping) it'll be gone by the time the old default drops off. I want to start gaining air miles or cash back :-)0
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