Credit Rating
27 November 2002, 01:14 PM
#1
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Advice required please
Due to overstretching myself somewhat in the last few months my credit rating will has taken a bashing, a few late payments and over limit cards etc etc.
How many months of good payment behaviour will it require to restore my rating to a high level.
I do have a large amount of outgoings the majority of which I have no problems with and my income is £30k +
Any advice would be appreciated
Cheers
Due to overstretching myself somewhat in the last few months my credit rating will has taken a bashing, a few late payments and over limit cards etc etc.
How many months of good payment behaviour will it require to restore my rating to a high level.
I do have a large amount of outgoings the majority of which I have no problems with and my income is £30k +
Any advice would be appreciated
Cheers
27 November 2002, 07:08 PM
#3
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Does anyone know what makes your credit rating go down?
For instance i've never missed a payment on anything, or had any judgements etc....but have just got a mortgage, and now have an (aggreed) overdraft after having to spend lots on the new pad. Would these two last things make my rating go down?
For instance i've never missed a payment on anything, or had any judgements etc....but have just got a mortgage, and now have an (aggreed) overdraft after having to spend lots on the new pad. Would these two last things make my rating go down?
27 November 2002, 10:56 PM
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Nat - no way, it'll go up. with property under your belt you have capital!
Buying a house and working for a bank are the top 2 things to make your CR go like a shuttle to the moon!
Matt
Buying a house and working for a bank are the top 2 things to make your CR go like a shuttle to the moon!
Matt
27 November 2002, 11:00 PM
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My ex worked for HSBC, and a loop-hole(2 yrs ago) to get your rating back up was to withdraw cash from a cashpoint and then walk into the branch and put it back in.
The cashpoints don't(didn't) automatically register the withdrawel and the bank's computer systems uprated the person's credit score for this.
Not sure if still works.
The cashpoints don't(didn't) automatically register the withdrawel and the bank's computer systems uprated the person's credit score for this.
Not sure if still works.
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27 November 2002, 11:35 PM
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SB, just be careful with your credit rating.
It's not actually points based as is commonly believed. More just a record of good and bad points about your financial history. The more you borrow the higher your 'rating'. The more credit cards you have the easier it is to get another. Some bank accounts are linked to your credit rating and can improve or damage it depending on how the account is managed. I made the mistake of using a non-linked account for years and didn't get the benefit of paying my wages into and having my morgage through it.
If you apply for credit and get a knock back, get it looked into right away. The knock back itself can sometimes count against your rating as i found out myself when black mark started showing up on my history when i applied for an overdraft.
Bad points can be removed from the history by paying up the debt and getting a letter of settlement from the company/organisation you owed the money too. This letter can then be sent to the credit scoring company (normally experian and/or equifax) and they will ammend your history to say that the debt has been settled.
A workmate of mine managed to 'damage' his rating by just doing a few dozen credit checks on himself when testing a bank credit rating system that we were providing IT support for. He had to get a letter from our employer explaining the situation to get his record ammended.
Like i said, just be careful. It's easy to damage your credit record and a complete pain in the **** to fix.
It's not actually points based as is commonly believed. More just a record of good and bad points about your financial history. The more you borrow the higher your 'rating'. The more credit cards you have the easier it is to get another. Some bank accounts are linked to your credit rating and can improve or damage it depending on how the account is managed. I made the mistake of using a non-linked account for years and didn't get the benefit of paying my wages into and having my morgage through it.
If you apply for credit and get a knock back, get it looked into right away. The knock back itself can sometimes count against your rating as i found out myself when black mark started showing up on my history when i applied for an overdraft.
Bad points can be removed from the history by paying up the debt and getting a letter of settlement from the company/organisation you owed the money too. This letter can then be sent to the credit scoring company (normally experian and/or equifax) and they will ammend your history to say that the debt has been settled.
A workmate of mine managed to 'damage' his rating by just doing a few dozen credit checks on himself when testing a bank credit rating system that we were providing IT support for. He had to get a letter from our employer explaining the situation to get his record ammended.
Like i said, just be careful. It's easy to damage your credit record and a complete pain in the **** to fix.
28 November 2002, 01:24 AM
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Basically what marty said, but because it is damaged doen't mean you won't be able to borrow. I managed to kill mine entirely when testing mortgage sourcing software. Apparently 26 credit checks in two days makes it look like you are about to pull a major scam, so you are considered a bad risk. Once again - a letter from the company who designed the software was required to sort it out, but if you sort the bad debts and then get in touch with experian you shouldn't have any problem. (Some people actually give you a higher score if you get in a bit of trouble and sort it yourself instead of being boring and regular 
)
)
28 November 2002, 02:28 AM
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A default on your account can be as damaging as a CCJ and will be held for up to 6 years on your record.
Of course, you will be fully aware of this as their will have been plenty of panic letters from relevant companies.
A few late payments and over the limit credit cards - as long as the problems are rectified within a month or two of them occurring, you shouldn't get too much of a battering on the old credit rating.
Anyone care to see if that is the case?
Of course, you will be fully aware of this as their will have been plenty of panic letters from relevant companies.
A few late payments and over the limit credit cards - as long as the problems are rectified within a month or two of them occurring, you shouldn't get too much of a battering on the old credit rating.
Anyone care to see if that is the case?
28 November 2002, 08:06 AM
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If you apply to see your credit history with the big 2 agancies (name escapes me for now, Experian & Equifax??) you will see 12 codes for each credit item you have. These indicate if you made a payment on time, made it late,indicate no. off late payments, etc.....
After 12 months, the last digit falls off the end, so any late payments will not show.
As for 6 years, that is only for serious items, such as a CCJ. If you have a CCJ, as long as it is settled, lenders usually over look it!
I learnt this from putting the errors on my files right. You would be horrified with the amount of errors on the average file, so I would pay the £1 and get copies of your file & check.
Your files will also show stuff your parents/sister/brother/ex wife/ ex GF had. Personally got myself "disassociated" from them, why should I be penalised if my ex defaults on a loan....!!
[Edited by matt.bowey - 11/28/2002 8:08:33 AM]
After 12 months, the last digit falls off the end, so any late payments will not show.
As for 6 years, that is only for serious items, such as a CCJ. If you have a CCJ, as long as it is settled, lenders usually over look it!
I learnt this from putting the errors on my files right. You would be horrified with the amount of errors on the average file, so I would pay the £1 and get copies of your file & check.
Your files will also show stuff your parents/sister/brother/ex wife/ ex GF had. Personally got myself "disassociated" from them, why should I be penalised if my ex defaults on a loan....!!
[Edited by matt.bowey - 11/28/2002 8:08:33 AM]
28 November 2002, 11:34 AM
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I gather it now costs £2 to check your rating. You also have to check with all the credit reference agencies because not all places use the same agency. I think there is also one called CCN.
I have a very poor credit rating. This is partly due to being hopeless at paying bills on time, but mostly because my sister went bankrupt a while ago. I deliberately don't do anything about it to prevent me from accepting one of the daily offers I seem to get for platinum credit cards with a silly credit limit.
I was also amazed at the amount of data stored on me and the cross referencing to previous addresses, other people etc.
Also, one of the biggest things that will bring your credit worthiness score down is not being on the electoral roll. Even short gaps will be damaging. Also, if you change address regularly, your rating will be harmed - regardless of the reason - as I have also found out the hard way.
I have a very poor credit rating. This is partly due to being hopeless at paying bills on time, but mostly because my sister went bankrupt a while ago. I deliberately don't do anything about it to prevent me from accepting one of the daily offers I seem to get for platinum credit cards with a silly credit limit.
I was also amazed at the amount of data stored on me and the cross referencing to previous addresses, other people etc.
Also, one of the biggest things that will bring your credit worthiness score down is not being on the electoral roll. Even short gaps will be damaging. Also, if you change address regularly, your rating will be harmed - regardless of the reason - as I have also found out the hard way.
28 November 2002, 12:43 PM
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Useful links:
http://www.equifax.co.uk/equifax/consumer/homec.html
http://www.uk.experian.com/consumer/consumer_main.html
Both will allow to pay the £2 for your file on-line now. It is amazing to read. I found details of loans etc my parents and sister had taken out in the past.
Interesting point on having lots of Credit Cards though. I read on one of the finance / money web sites that having more than six CC / Store cards is bad for your rating. So I cancelled a couple which I didn't use.
http://www.equifax.co.uk/equifax/consumer/homec.html
http://www.uk.experian.com/consumer/consumer_main.html
Both will allow to pay the £2 for your file on-line now. It is amazing to read. I found details of loans etc my parents and sister had taken out in the past.
Interesting point on having lots of Credit Cards though. I read on one of the finance / money web sites that having more than six CC / Store cards is bad for your rating. So I cancelled a couple which I didn't use.
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