Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • jonjon123
    • By jonjon123 10th Mar 18, 3:47 PM
    • 44Posts
    • 1Thanks
    jonjon123
    Help with credit file needed
    • #1
    • 10th Mar 18, 3:47 PM
    Help with credit file needed 10th Mar 18 at 3:47 PM
    Hi all, hope you are all well.

    Im in a bit of a pickle at the moment, as i cannot understand whats going on with my credit file and hoping someone can point out the answer and help me out please?

    Approximately for 2 years now I have been paying 2 companies back with an ''arrangement to pay'' which has been agreed, payments have been on time and it didn't stop me obtaining credit, because I applied for a loan and car finance at the time and everything was successful, but the payments are still ongoing.

    2 years have now passed, the current agreements with these 2 companies are still in place, and everything else is up to date and on time with all my other credit commitments, yet now i am being declined everywhere and cannot obtain credit?

    Nothing has really changed in 2 years, the payments are still being made, all my HP and loans are up to date and on time, so cannot get my head round why this is happening as surely things should have got better, not worse?

    I have contacted the credit reference agencies and they have told me, the only 2 things that are showing up, are the arrangement to pay companies that could be inpacting my credit file, but how does this make sense when they were there 2 years ago, just as they are now, yet obtaining credit was fine then and now it's a blooming nightmare?

    Really confused as to why, as it doesn't make sense, so can anyone please advise?
    Its not like anything new has appeared, as it was there all along.
Page 1
    • Gary_Dexter
    • By Gary_Dexter 10th Mar 18, 4:02 PM
    • 1,288 Posts
    • 736 Thanks
    Gary_Dexter
    • #2
    • 10th Mar 18, 4:02 PM
    • #2
    • 10th Mar 18, 4:02 PM
    Lenders will have their own criteria for providing credit (or not) to people.

    How much are the current debts?

    What other current credit do you have including balances?

    Are you on the electoral role?

    What's your salary? Dependents? Other salaries?
    • Shakin Steve
    • By Shakin Steve 10th Mar 18, 6:08 PM
    • 1,455 Posts
    • 1,200 Thanks
    Shakin Steve
    • #3
    • 10th Mar 18, 6:08 PM
    • #3
    • 10th Mar 18, 6:08 PM
    The only thing that has changed from 2 years ago when you took out a loan and car finance is that you now have a loan and car finance on your report as well as the arrangements to pay. Lenders may think you could have difficulty repaying.
    I came into this world with nothing and I've got most of it left.
    • jonjon123
    • By jonjon123 11th Mar 18, 1:26 PM
    • 44 Posts
    • 1 Thanks
    jonjon123
    • #4
    • 11th Mar 18, 1:26 PM
    • #4
    • 11th Mar 18, 1:26 PM
    Lenders will have their own criteria for providing credit (or not) to people.

    How much are the current debts?

    What other current credit do you have including balances?

    Are you on the electoral role?

    What's your salary? Dependents? Other salaries?
    Originally posted by Gary_Dexter
    The current debts add up to about £20k in total.

    Yes i am on electoral role and my annual salary is around 24k with 1 dependant, so do you think that maybe it's not the arrangements to pay that is causing the problem, more the fact that the debt level is too high?

    I was going to try and pay off these 2 arrangement to pays, as if they are causing issues, I would try and pay them off, however like ive said they didn't cause a problem at the time, so trying to pin point as to whats causing this?
    • jonjon123
    • By jonjon123 11th Mar 18, 1:28 PM
    • 44 Posts
    • 1 Thanks
    jonjon123
    • #5
    • 11th Mar 18, 1:28 PM
    • #5
    • 11th Mar 18, 1:28 PM
    The only thing that has changed from 2 years ago when you took out a loan and car finance is that you now have a loan and car finance on your report as well as the arrangements to pay. Lenders may think you could have difficulty repaying.
    Originally posted by Shakin Steve
    Please see my post above.......

    That's what I was thinking.......

    Is it not necessarily a case of the arrangements to pay that are causing problems, more due to the fact that the debt level is too high, or a bit of both?
    • jonjon123
    • By jonjon123 11th Mar 18, 1:32 PM
    • 44 Posts
    • 1 Thanks
    jonjon123
    • #6
    • 11th Mar 18, 1:32 PM
    • #6
    • 11th Mar 18, 1:32 PM
    I did forget to ask......

    If everything is up to date and no payments have never been missed, which is the case on my file, then why when i look on experian it shows approximately 900 out of 999 and when i looked on clearscore it's only about 285 out of 700, which reflects poor?

    Doesn't make sense to me. I almost feel like im being well behaved, doing everything right, yet my score isn't reflecting this, so im asking myself why i am even bothering.
    • zx81
    • By zx81 11th Mar 18, 1:44 PM
    • 17,239 Posts
    • 18,326 Thanks
    zx81
    • #7
    • 11th Mar 18, 1:44 PM
    • #7
    • 11th Mar 18, 1:44 PM
    It's due to the scores being made up. They don't reflect your credit worthiness or have anything to do with how lenders view you. You'd do better to read tea leaves.

    If you can settle the defaults, do so.
    • Shakin Steve
    • By Shakin Steve 11th Mar 18, 2:33 PM
    • 1,455 Posts
    • 1,200 Thanks
    Shakin Steve
    • #8
    • 11th Mar 18, 2:33 PM
    • #8
    • 11th Mar 18, 2:33 PM
    Please see my post above.......

    That's what I was thinking.......

    Is it not necessarily a case of the arrangements to pay that are causing problems, more due to the fact that the debt level is too high, or a bit of both?
    Originally posted by jonjon123
    I'd have had a job seeing your post before I posted mine cause mine was posted a day before yours.
    I came into this world with nothing and I've got most of it left.
    • cjmillsnun
    • By cjmillsnun 11th Mar 18, 2:39 PM
    • 602 Posts
    • 734 Thanks
    cjmillsnun
    • #9
    • 11th Mar 18, 2:39 PM
    • #9
    • 11th Mar 18, 2:39 PM
    So you have 2 unsatisfied defaults with arrangements to pay, and non mortgage debt that is 4/5s of your salary.

    I know what I would do if I was a lender.

    You have a serious debt problem.

    If you can pay off the defaults, do so, then try and overpay on the others. Your biggest problem is the level of debt. It is unsustainable.
    Last edited by cjmillsnun; 11-03-2018 at 2:42 PM.
    2.88 kWp System, SE Facing, 30 Degree Pitch, 12 x 240W Conergy Panels, Samil Solar River Inverter, Havant, Hampshire. Installed July 2012, acquired by me on purchase of house in August 2017
    • jonjon123
    • By jonjon123 11th Mar 18, 3:55 PM
    • 44 Posts
    • 1 Thanks
    jonjon123
    So you have 2 unsatisfied defaults with arrangements to pay, and non mortgage debt that is 4/5s of your salary.

    I know what I would do if I was a lender.

    You have a serious debt problem.

    If you can pay off the defaults, do so, then try and overpay on the others. Your biggest problem is the level of debt. It is unsustainable.
    Originally posted by cjmillsnun
    So you feel it's got nothing to do with my credit score, or the fact that im paying 2 arrangements to pay?

    Are you saying its more of a case of my debt level is far too high against my salary?

    I'm still a little unsure because when i applied for the loan for debt consolidation, surely this is taken into account as you are paying off these debts, so therefore arent necessarily getting into more debt?
    • jonjon123
    • By jonjon123 11th Mar 18, 4:05 PM
    • 44 Posts
    • 1 Thanks
    jonjon123
    Oh, another thing that has just sprung to mind........

    I have about 10 debts in total.

    3 of them are my car finance, my loan and my credit card. These are all on time, not behind or in default and obviously reflect on my credit file and the other 7 are late payments, including the 2 arrangement to pays, so my big question is.............

    Why do 2 of my arrangement to pays, also show up on my credit file, however the other 5 are also being paid back, but they do not show up AT ALL?

    I cannot understand why some are there and some are not?

    They are all debts at the end of the day.
    • zx81
    • By zx81 11th Mar 18, 4:07 PM
    • 17,239 Posts
    • 18,326 Thanks
    zx81
    Different lenders report to different files, or not at all.

    Have you checked all three of your files?
    • takman
    • By takman 11th Mar 18, 4:22 PM
    • 3,387 Posts
    • 2,987 Thanks
    takman
    So you feel it's got nothing to do with my credit score, or the fact that im paying 2 arrangements to pay?

    Are you saying its more of a case of my debt level is far too high against my salary?

    I'm still a little unsure because when i applied for the loan for debt consolidation, surely this is taken into account as you are paying off these debts, so therefore arent necessarily getting into more debt?
    Originally posted by jonjon123
    A debt consolidation loan does mean you are getting into more debt. You could take out a loan and not pay bank the other debt (which does happen often if you read the posts on here).

    When you apply for credit all lenders will see is someone who has arrangements to pay and defaults (so has difficulty paying off their debts as agreed). They will then look at the fact you owe £20k and only earn £24k a year so your at a very high risk of not paying back what you owe due to your history.

    I certainly wouldn't lend you any money so I'm not surprised the banks wouldn't.

    Your best bet is to try and pay off any accounts where you have an arrangement to pay or default as quick as you can. Then over time your credit history will improve.

    Remember it's just not one thing but several factors added together so it won't be a quick fix.

    You should also post on the Debt Free Wannabe part of this forum and sort out your budget and finances before it's too late.
    • cjmillsnun
    • By cjmillsnun 11th Mar 18, 4:24 PM
    • 602 Posts
    • 734 Thanks
    cjmillsnun
    I can see you've checked 2 of the files (experian and equifax - via clearscore).

    I would sign up for noddle so you can get callcredit.

    But 7 accounts potentially showing arrears or late payments as well as 20k worth of non mortgage debt against your income is what is giving you issues.

    Are some of the debts very old? If they are old enough they may have been defaulted more than six years, in which case they drop off your file. If you have been paying them, you must keep paying as they are an acknowledged debt and can be enforced via the courts by means of a CCJ which WILL go on your file.
    Last edited by cjmillsnun; 11-03-2018 at 4:26 PM.
    2.88 kWp System, SE Facing, 30 Degree Pitch, 12 x 240W Conergy Panels, Samil Solar River Inverter, Havant, Hampshire. Installed July 2012, acquired by me on purchase of house in August 2017
    • jonjon123
    • By jonjon123 11th Mar 18, 4:29 PM
    • 44 Posts
    • 1 Thanks
    jonjon123
    A debt consolidation loan does mean you are getting into more debt. You could take out a loan and not pay bank the other debt (which does happen often if you read the posts on here).

    When you apply for credit all lenders will see is someone who has arrangements to pay and defaults (so has difficulty paying off their debts as agreed). They will then look at the fact you owe £20k and only earn £24k a year so your at a very high risk of not paying back what you owe due to your history.

    I certainly wouldn't lend you any money so I'm not surprised the banks wouldn't.

    Your best bet is to try and pay off any accounts where you have an arrangement to pay or default as quick as you can. Then over time your credit history will improve.

    Remember it's just not one thing but several factors added together so it won't be a quick fix.

    You should also post on the Debt Free Wannabe part of this forum and sort out your budget and finances before it's too late.
    Originally posted by takman
    Thank you for the advice, i appreciate it.

    Just a couple of questions though.....

    Why would somebody lending me money to pay off debts early and therefore avoid further interest over the term get me into more debt?

    I also wanted to ask what you meant about taking out a loan and not paying it back?
    You said it was something you will see a lot of on here. See a lot of what exactly?
    What is it people do?

    And finally, how do they know they are arrangements to pay?
    It was the advisor on the phone speaking to Equifax who said this, but after looking on all 3 of my files they show as ''up to date'' statuses.

    Would that be a negative necessarily?
    • jonjon123
    • By jonjon123 11th Mar 18, 4:33 PM
    • 44 Posts
    • 1 Thanks
    jonjon123
    I can see you've checked 2 of the files (experian and equifax - via clearscore).

    I would sign up for noddle so you can get callcredit.

    But 7 accounts potentially showing arrears or late payments as well as 20k worth of non mortgage debt against your income is what is giving you issues.

    Are some of the debts very old? If they are old enough they may have been defaulted more than six years, in which case they drop off your file. If you have been paying them, you must keep paying as they are an acknowledged debt and can be enforced via the courts by means of a CCJ which WILL go on your file.
    Originally posted by cjmillsnun
    This is intriguing me now.
    How can you see that i have checked my files?

    Yes, all of the debts have been acknowledged so i am paying them off slowly, but as i say only 2 of them are showing on the file as ''up to date'' yet the others arent reflecting anywhere with all 3 agencies.

    I was told that once a debt becomes over 6 years old it should be removed from the credit file regardless if it was paid or not, but apparently they reserve the right to still report this?

    Is this right or wrong?
    • DCFC79
    • By DCFC79 11th Mar 18, 4:35 PM
    • 31,903 Posts
    • 20,091 Thanks
    DCFC79
    Check equifax, use clearscore for that. You will get a better view but as ZX81 says its dependant on lenders etc reporting to the agencies so you will see whats reported will vary from 1 to another.
    • jonjon123
    • By jonjon123 11th Mar 18, 4:37 PM
    • 44 Posts
    • 1 Thanks
    jonjon123
    I take it if I can only see 2 on my file then the others aren't hanging around in the background are they?

    I assume if I only see 2 then that's it 100% they are no more, despite owing other companies?

    I'm very confused because as I say when I spoke to the advisor on the phone at Equifax, he told me they were arrangements to pay, so that sounds negative to me, however looking at my file for myself, shows ''up to date''

    Is he talking nonsense?
    • jonjon123
    • By jonjon123 11th Mar 18, 4:39 PM
    • 44 Posts
    • 1 Thanks
    jonjon123
    Check equifax, use clearscore for that. You will get a better view but as ZX81 says its dependant on lenders etc reporting to the agencies so you will see whats reported will vary from 1 to another.
    Originally posted by DCFC79
    So let me get this straight.

    Clearscore is Equifax's credit file

    Noddle is Callcredit

    And Experian is.......who please?
    • takman
    • By takman 11th Mar 18, 5:07 PM
    • 3,387 Posts
    • 2,987 Thanks
    takman
    Thank you for the advice, i appreciate it.

    Just a couple of questions though.....

    Why would somebody lending me money to pay off debts early and therefore avoid further interest over the term get me into more debt?

    I also wanted to ask what you meant about taking out a loan and not paying it back?
    You said it was something you will see a lot of on here. See a lot of what exactly?
    What is it people do?
    Originally posted by jonjon123
    When you take out a debt consolidation loan you could take out the loan and get the money in your bank and not pay off any of your debts. You could then spend the money and end up in twice as much debt as you started with.

    I've seen quite a few posts on here where people have taken out a loan to pay off credit card debt. They have used the money to pay it all off but then started using the credit card again and spent more and more each month until they end up owing the money on the loan and have maxed out their credit cards again.

    So as this is so easy for people to do a lot of people get turned down for a loan because the bank look at it as extra debt as they can't usually guarantee you will pay the debt off.

    So even if you have a credit card with a zero balance after paying it off with a loan the banks will still consider it when deciding whether or not to offer you new credit.

    And finally, how do they know they are arrangements to pay?
    It was the advisor on the phone speaking to Equifax who said this, but after looking on all 3 of my files they show as ''up to date'' statuses.

    Would that be a negative necessarily?
    Originally posted by jonjon123
    If you have checked the three main credit reference agencies and they don't show any negatives such as arrangements to pay, late payments or defaults etc then when you apply for new credit the lenders won't know this.

    But if you apply to lenders that you have had issues with in the past then they may still have this on record.

    So let me get this straight.

    Clearscore is Equifax's credit file

    Noddle is Callcredit

    And Experian is.......who please?
    Originally posted by jonjon123
    To look at Experian information for free use the MSE Credit Club (on this website):

    https://www.moneysavingexpert.com/creditclub
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

57Posts Today

2,323Users online

Martin's Twitter