- 1 806 Credit Score - What It Means & How To Improve It
- 2 What's A Good Credit Score & How Do You Get One?
- 3 what is my actual credit score
- 4 A Quick List On What Does And Does Not Affect Your Credit Score
- 4.0.1 What Does Not Affect Your Credit Score:
- 4.0.2 Tips To Improve Your Credit Score
- 4.0.3 Benefits of having a good credit score as opposed to a poor credit score.
- 4.0.4 How long does something stay on my credit history?
- 4.0.5 197 Responses to “A Quick List On What Does And Does Not Affect Your Credit Score”
806 Credit Score - What It Means & How To Improve It
So you want to know what it means to have a 806 credit score, whether it's "Good" or "Bad", and how to improve it?
You have come to the right place!
When I checked my credit score for the first time, it was an "evil" 666.
I had no idea what that meant!
All I knew is that I was that I had just been turned down for a used car loan, and that I had a lot of credit card debt.
I didn't know if my score was "Good", "Bad", or somewhere in between. I also had no idea how to properly manage my credit.
But there was one thing I did know - my credit sucked!
That's when I got serious about reading everything about credit scores and credit reports that I could get my eyes on.
I knew I had to do something about improving my credit score if I was going to buy a decent used car and work toward buying my first home.
All my hard work paid off:
8 Months later, my credit score was an "Excellent" 777!
Note: During my research, I found a premium credit monitoring service that I've grown to love - FreeScoresAndMore (learn why I love it).
Since my credit score is now "Excellent", my new obsession is to help you better understand your credit score, and what it means for you, so you don't have to spend days on end trying to figure it out yourself.
So let's get on with it:
Is 806 Considered a Good Credit Score?
806 is a Excellent Credit Score! Congratulations is in order! An "Excellent" credit score suggests you have a long, well managed credit history. You probably manage your revolving credit lines well (credit cards) and make your payments on time. You should be eligible for the most competitive loan rates and some of the best credit cards.
You got your Credit Score from the wrong place
In my opinion, if you've received your credit score but still don't understand it - you got your score from the wrong source!
The fact is that you have a total of 3 credit scores (one from each credit bureau).
If you’re checking your scores from a reputable source, they will provide detailed information about your credit score – such as why it is what it is, how it got that way, how you rank, what credit rating category you're in, etc.
Having said that, I highly recommend getting All 3 Free Credit Scores from my favorite credit monitoring service: FreeScoresAndMore.
With FreeScoresAndMore, you will have 100% of your credit data.
That includes 3 credit scores, 3 credit reports, daily credit monitoring with monthly score updates, as well as expert knowledge on how and why your scores are what they are, so you won’t have to ask this question again.
Most credit scores including FICO and VantageScore range from 300-850, the higher the better. Within that range, there are different categories, ranging from bad to excellent. Here's a general idea of the ranges and their "ratings". Your range will be indicated below.
- Excellent Credit: 750 - 850 ← You Are Here
- Good Credit: 700 - 749
- Fair Credit: 650 - 699
- Poor Credit: 550 - 649
- Very Poor: 549 and below
5 Steps To Improve Your 806 Credit Score
Step 1: Before you begin, you need full access to 100% of your credit data. I recommend using FreeScoresAndMore to get your 3 credit reports & scores.
Step 2: Along with checking all 3 credit scores, you need to take a thorough look at your 3 credit reports. Check for errors, and signs of ID theft.
Step 3: Identify what's dragging down your scores. That's where FreeScoresAndMore shines.
Step 4: Develop a plan of action based on the factors which are dragging down your credit score the most.
Step 5: Execute your plan and watch your score rise with a comprehensive credit monitoring service like FreeScoresAndMore.
My score skyrocketed 111 points. Here’s how I did it.
What does "Excellent Credit" mean to you?
Congratulations on achieving a credit history worthy of the label "excellent". This means that your score really can't get much higher, as you already have nearly perfect credit.
An excellent credit score shows that you have a long, well managed credit history. You most likely have several credit card and loan accounts which have been on time for many years. It also indicates that you have no negative items (collections, missed payments, bankruptcy) on your credit report.
You can expect to enjoy any lender's absolute best loan and interest rate offers, since you are such a low risk borrower.
It appears that you don't need any advice on maintaining a good credit score, since you have apparently been doing all the right things. But you should keep in mind that missing one payment can drag down your score by 80 points or more. And piling on a bunch of credit card debt can do the same, or worse.
Our advice is to keep doing what you've been doing, and enjoy lenders drooling at the thought of you borrowing money from them!
While exact details of how your 806 credit score was calculated is an industry secret, we do know that credit scores are formulated using many different pieces of data from your credit report. This data is grouped into five categories as shown below. The percentage to the right of each one indicates how important it is in determining your credit score.
- Payment History - 35% - This is typically the first thing a potential lender will want to know. Have you paid your past accounts on time? Have you missed any payments?
- Total Amounts Owed - 30% - How much you owe on each of your credit accounts. Higher amounts does not necessarily mean you are high risk, other factors are considered as well.
- Length of Credit History - 15% - Generally a longer credit history will yield higher credit scores. But that's not always the case, it also depends on how often you use your credit, and how responsibly you manage your debt.
- Types of Credit in Use - 10% - Credit score providers will consider the mix of credit accounts you have, such as credit cards, retail accounts, auto loans, mortgages etc.
- New Credit - 10% - Lenders want to know if you've recently been applying for many credit accounts in a short period of time. That can often represent a greater risk to the lender.
Different Credit Score Range Scales
There are many credit scores available to lenders, most use FICO scores, but even those can vary in how they are calculated depending on the version being used. Lenders can also create their own credit score ranges, or use industry specific credit scoring models such as those geared towards mortgages or auto loans.
Here's a quick look at the various credit scoring models and the range they use:
- FICO Score: 300-850
- VantageScore 3.0: 300–850
- VantageScore (versions 1.0 and 2.0): 501–990
- PLUS Score: 330-830
- TransRisk Score: 100-900
- Equifax Credit Score: 280–850
As you can see, having a 806 TransRisk score isn't nearly the same as a 806 FICO score. For that reason, it's also important to know which scoring model is being used to determine how "good" or "bad" your credit really is.
Some of the questions you probably have are: Is 806 a good FICO Score? Is 806 a bad FICO Credit Score? Is a FICO Score of 806 good or bad? What does a FICO Score of 806 mean? What does a 806 FICO Score mean?
Knowledge Is Power - Especially when it comes to credit scores
Did you know if you've received just 1 credit score of 806, you've only seen 16% of your credit data!
You actually have 3 credit scores based on 3 different credit reports. That's 6 different items which are very important for you to have.
Not having access to 100% of your credit data leaves you vulnerable to credit reporting errors, credit fraud, and identity theft.
Make sure you have access to all of your credit scores and reports, I recommend my favorite premium service: FreeScoresAndMore. With FreeScoresAndMore, you get all 3 credit scores & reports, and daily monitoring of your 3 credit reports, with alerts of key changes to your credit files.
What's A Good Credit Score & How Do You Get One?
With Halloween in our rearview mirrors, I know that the last thing you want to hear is another scary story about murderous ghosts or calls coming from inside the house; that's why today, I am bringing you a story about something far more terrifying вЂ” a story about managing your credit В in a mature fashion!В Ahhhhhh (cue cackling witch voice, sound of breaking glass). Submitted for the approval of the Midnight Adulting Society, I call this story, "The Tale of the Accidentally Screwed-Up Credit Score."В
About a decade ago, I had a pretty good credit score. This was a freak accident, of course вЂ” I had just forgotten about the credit card I applied for my freshman year of college; because of this, I never amassed any debt, and kept my credit shiny and new. And so, when I checked my credit score for the first time right after I graduated, I was pretty impressed with myself. I proceeded to spend the next few years thinking that I was a financial genius for sticking my credit card in an old purse and then forgetting about it for three years.
So imagine my surprise several years later, when I decided to check my credit scoreВ before applying to rent a new apartment вЂ” and found that my score had dipped 200 points. It had dropped significantly since the last time I checked, despite the fact that I still didn't have any major debt, and paid my bills on time, as far as I knew (this is called "foreshadowing").
What the hell happened? WhatВ followed was a crash course in learning what credit scores actually are, how they're determined, and what we can do to fix them after we mess them up. Read on, and make sure that my suffering was not in vain.
To start with the basics: a credit score is a three digit number that is supposed to reflect your financial responsibility. Think of it as a GPA for your money. It exists so that potential lenders can easily determine whether or not you're likely to pay back a loan in a timely fashion.
And how is that score created? By taking your financial historyВ into accountВ вЂ” including elements like whether you pay your bills on time, whether you've maxed out your credit cards, and how long you've had your own bank accounts and credit cards. They then take all this information, and apply a formula to it.В This formula yields a number, which falls on a scale between 300 and 850 вЂ” and voila, you have your credit score.
The most common of these formulas was developed by a company calledВ the Fair Isaac Corporation; the number it yields is called your FICO credit score. Your FICO score is typically the one you'll examine when trying to get a handle on your own credit, though there are many different kinds of credit scores out there, used by different companies. Though your credit scores can differ between these companies, the good news is that they rarely differ more than 50 points вЂ” so you'll still have a good idea of your general financial health from just looking at your FICO score.
Why Should You Care About Your Credit Score?
You may be thinking, "Who cares about any of this crap? I'm years away from buying a house, a car, or anything more serious than a platter of taquitos, honestly." But credit scores are relevant to us bus-riding, student-loan-paying, apartment-renters, too; it can influence what kinds of interest rates you get on your credit card, and even whether you're able to rent certain apartments.В
As Credit Karma notes, " A low score could cause landlords to deny you outright or to impose additional conditions on your tenancy," a statement which lines up with my own experience вЂ”В I've had my credit checked every single time I put my name on a lease. And I'm not talking about some kind of fancy condo вЂ” bad credit nearly kept me out of a street-level apartment where I could basically hear my next-door neighbors fart.В
Where Does Your Credit Score Come From?
There are three major credit reporting agencies in the U.S. вЂ” Experian, Equifax, and TransUnion. They keep track of all of your financial information, like whether you have outstanding balances on your credit cards, and create credit reports based on it вЂ” and then they use the previously mentioned formulas to determine your credit score. Experian, Equifax, and TransUnion are all distinct companies, which means that you actually don't have a single credit score вЂ” you have three. Your scores at each company will usually be very similar, though.
Though it may seem, at first blush, that paying your credit card on time would be the only thing that could really impact your credit score, there's actually more to the story. For example, when I started trying to figure out what had gone wrong with my own credit score, I realized that I had done some pretty serious damage by just forgetting to forward my mail.
When I moved out of my first post-college apartment, I realized a few weeks after moving that I hadn't left a forwarding address at the post office. But I decided it didn't matter вЂ” what the hell did I ever get in the mail, anyway? Answer: my electric bill!В A final electric bill for $50 got sent to my old address, over and over, before the electric company handed it over to a collections company вЂ” who also sent bills to my old address over and over. Eventually, the collections company gave up contacting me, realized they were never gonna get that $50 and knocked a few hundred points off my credit score instead. Those lost points would end up costing me way more than $50 in credit card interest rates. Whoops.
The median credit score is 720. People with scores over 720 are said to have "good credit;" people with scores under 620 are more likely to have trouble getting good loans or have to pay higher interest fees.В
Does a low credit score mean that your life is ruined?В But your score can impact your life. For example, my low score made it tougher for me to get that apartment I wanted. We ended up only putting my roommate's name on the lease, because her finances were in better order than mine.
What's The Difference Between A Credit Report & A Credit Score?
A credit report is a record of all your financial activity over the past few years вЂ” so it's a great resource to make sure that no one has stolen your identity and opened up any credit cards or bank accounts in your name. Your credit report contains the raw data that is used to calculate your credit score вЂ” however, your credit report does not actually include your credit score itself.В
You should still get a copy of your credit report every year, though вЂ” it is important to make sure that, say, no nefarious hackers have lifted your credit card information in order to fund their niche porn site about people who like to have sex on top of a pile of paninis.В You can get a free copy of your credit report once a year atВ AnnualCreditReport.com, the only authorized free credit report site run by the Federal Trade Commission. This site offers a separate annual credit report from each of the three credit reporting agencies. TheВ Federal Trade Commission's Consumer Information В website notes that AnnualCreditReport.com is the only place out there that will give you a completely free copy of all your credit reports вЂ” other non-government sites that offer copies of your credit report often have sneaky ways of charging you money, like signing you up for a "credit tracking" service with reoccurring monthly charges.
How Do You Find Out Your Actual Credit Score?
But let's get real: you want to know your credit score now, not annually. The bad news is, there's no actual free way to find out your credit score without signing up for that annual report. Some sites will give you an estimated FICO credit score for free, but that's just an estimate вЂ” it's not the same as the number than banks or credit card companies will get when they look at your file. For the real deal, you'll have to pay up.В
Some credit cards companies like Discover offer free FICO credit scores for customers; but if you don't have one of those cards, you'll have to buy your credit score on your own, from a company like myFICO.com.В
When buying your credit score, be careful that you're buying it from a reputable company. And no matter where you buy it from, keep an eye out for added services that the site may be adding to your bill. A lot of sites that sell credit scores also offer "credit monitoring" or services that supposedly protect you from identity theft; these might be slipped on to your bill without you noticing. According to the U.S. Consumer Financial Protection Bureau, you can't be required to buy any kind of add-on service when purchasing your credit score, and you shouldn't buy your credit score or any other information from a site that forces you to.В
So you navigated your credit report, avoided all the random add-on charges, and finally saw your credit score . which is pretty low. What happens now? Is your life permanently ruined? Will you have to live in a shared off-campus apartment with a philosophy major named "Rando" and his 19 Reservoir Dogs posters until you die? Will you never get laid again?
Real talk: having bad credit sucks. I got depressed when I found out about mine, because it made me feel like I was doing a bad job at taking care of myself (so basically, exactly the same things I felt when I found out I had HPV). But much like HPV, bad credit heals over time, as long as you're ready to start getting your act together.В
Your financial mistakes only stay on your credit report for a limited time вЂ” almost everything, from late payments to foreclosures, stop being a factor on your credit score after seven years. I'm eight years past my brain fart about the electric bill, and happy to report that my credit is finally healthy again. So if you commit to paying your bills on time, paying down your cards, and organizing your finances, your bad credit score can one day be a faint memory that you only dig up when writing smarmy articles about financial responsibility.
what is my actual credit score
Recently I moved to a new state and needed to get signed up with the local electric company. They ran a credit check on me and determined that I needed to pay a $200 deposit. They said this was because my credit score from Experian was less than 500.
I had run into some credit issues that turned out to be a bad account being put on my credit report. I had this fixed but I thought that something like this may have happened again. So I paid $15 for my credit report + score from Experian only to find out my score was > 700 and that there was no negatives on my account.
I contacted the power company that told me the score they received was my TEC score which may differ from my FICO score and that I would have to take it up with Experian.
My questions (sorry for the long winded intro) are.
- What is my TEC score, how is it different from my FICO score?
- Is it possible / likely that my TEC score would be 200 points different from my FICO?
- What rights do I have to the information contained in my TEC score?
I tried scouring Experian's site for info, but all the info they have for TEC is trying to sell it to companies.
A Quick List On What Does And Does Not Affect Your Credit Score
- Payment history – how you pay the account, making payments on time-to-time
- How much you owe – the closer you are to your credit limit can lower your credit score
- The type of credit or loans you have – bank loans look better than high risk catalogue loans
- Inquiries – applying for new credit, if you apply for new credit each inquiry or “footprint” can impact your credit score
- Court records – if you have any County Court Judgements these can negatively affect your credit score
- How long you have had credit – the longer you show you have had credit improves your credit score
- Bankruptcy or any form of insolvency – these can have a huge negative impact on your credit score
- Wrong or erroneous information – inaccurate or errors on your credit report can affect your credit score
- Being on the electoral register – this is one way credit bureaus know who you are
Buddy Loans is a UK based guarantor loan company that helps people, regardless of their credit history and credit score, in being approved for unsecured guarantor loans for the following purposes:
Please visit our loan calculator page and see for yourself, how much you can borrow and the exact terms of payments.
What Does Not Affect Your Credit Score:
- Loans to friends and family
- Mobile phone bills – these are not reported to the credit bureaus, but can be if the account is passed onto a collection agency
- Gas,electricity and water bills – these are not reported to the credit bureaus, but if the accounts fall into a collection status or are passed onto a collection agency, they may then be reported. Some of the larger providers do check credit history prior to granting the service
- Rent – landlords typically do not report rent status to credit bureaus, however this was to change in late 2013 so in the future rent payments could affect your credit score in a positive or negative manner depending on how you pay your rent
- Council tax – local councils do not report to the credit bureaus, so council tax arrears does not affect your credit score
- Pre-paid credit cards – typically these types of credit cards do not report to the credit agencies
- Personal details – your address, race, religion, etc, do not affect your credit score
- Soft searches or inquiries – in some instances lenders may review your credit history for mass postings of offers, these inquiries do not affect your credit score
- Your wages – salary and wages are not taken into account for credit scoring purposes
- Savings – savings and investments are not taken into account for credit scoring
- Your spouse or partner’s credit – unless you have joint accounts, each person’s credit history is their own
Tips To Improve Your Credit Score
- Pay your accounts on time – this cannot be stressed enough as it is the largest single percentage that makes up your credit score
- Close any accounts that you do not use – do not close the oldest account you may have, this shows how long you have been in the credit bureaus
- Do not apply for a lot of credit – inquiries or “footprints” impact your credit score, so keep the credit applications to a minimum
- Correct any mistakes or errors on your credit history
- Not maxing out or having high debt levels – the closer you are to your credit limit, the more it impacts your credit score
- Don’t take out catalogue or other high interest high risk types of debt – these types of accounts are viewed as being a high risk
Benefits of having a good credit score as opposed to a poor credit score.
Having a good credit score can impact many areas of our lives, from being able to purchase a home, to even our jobs.
Employers/Jobs – There are some high level jobs and jobs in the banking or financial sector that having poor credit can affect. For some jobs a credit check may be a part of the hiring process and a low credit score may cost you the job.
Getting a mortgage or rent a place to live – Mortgage companies and banks use credit history and credit scoring as a part of the basis for granting a loan or mortgage. Many landlords use credit history also as part of the process as to rent to someone. Having a low credit score or poor credit history can have a detrimental effect on being able to buy a home or rent a place to live.
Getting a guarantor loan or bad credit loan – Obviously if you have poor credit or a low credit score you are less likely to be approved for a loan, this can include car loans or cars on HP.
Lower interest rates – This ties in with being able to qualify for a loan; the higher your credit score, the lower the interest rate you may be offered for a loan or mortgage. This can save you money in the long-term.
Better insurance rates – Depending on the type of insurance you may be applying for and the insurer, if they use credit scoring as a part of the underwriting process, a high credit score may allow you to receive lower premiums saving you money.
Not being required to give deposits – If you have a high credit score you may not be required to provide a deposit or you may be able to negotiate a lower deposit for various contracts and utilities.
How to check your credit and credit score:
There are three major credit reporting agencies in the UK.
These helpful links will allow you to access the credit bureaus web site and for £2 order a copy of your “statutory credit file”. In some instances you can receive a copy of the file instantly or have a hard copy posted to you.
It is important to periodically check your credit for errors as these can cost you in the long-run.
There is a credit “blacklist”
This is a myth. There is no credit “blacklist”. Credit is granted based in part on someone’s credit score and credit history, there is no special list.
My credit affects my spouse or partner.
Not true unless you have jointly held accounts together. Each person credit history is their own.
If I go bankrupt it stays on my credit forever.
False. Bankruptcy as with everything on your credit history stays for a period of six years. In the instance of bankruptcy a lender may ask the broad question, “Have you ever been bankrupt?”
This question isn’t asking are you bankrupt, but have you ever been bankrupt and so disclosure of the bankruptcy is required.
Credit scores stay the same.
Credit scores change due to various factors such as how you pay your accounts, what your credit levels or debt levels are, etc. You can raise or lower your credit score by how you make payments, take on more credit, etc. In addition, each credit bureau uses different scoring guidelines which can cause your score to differ among credit reporting agencies.
Lenders base their decision to lend only on your credit score.
Many banks and lenders do use your credit score as a large indication of how you will repay a loan, but it is not always the sole basis for granting or rejecting a loan.
If someone living with me has poor credit it affects my credit.
In most instances this is not true as each credit file is individual unless you have joint debts. However on occasion by being at the same address someone with good credit may find themselves rejected for credit or experience an issue as a negative mark may be appearing at that address. If this were to occur there are a couple of things that can be done. One is to request the bank or lender to look closer at the loan request and confirm the negative mark is not the applicants. The second is to have a Notice of Disassociation placed on their credit report. This disassociates them from the person with the poor credit.
How long does something stay on my credit history?
For the majority of accounts and public records reported to the credit bureaus, they will stay on your credit history for six years. Open accounts remain indefinitely as they are open and relevant to your credit status. Once an account has been closed, it will remain on your credit history for six years.
If you default on an account, the default date will be recorded and six years from the date of default the account will drop off your credit.
If you were to go bankrupt, six years from the date you were made bankrupt, the bankruptcy should drop off your credit history. If you were to do an Individual Voluntary Arrangement that lasted five years, one year after completing the IVA it would drop off your credit history.
One important thing to keep in mind is that while items are to automatically drop off your credit history after six years, this may not always occur. You may need to contact the credit bureau(s) in question and have them correct the account.
197 Responses to “A Quick List On What Does And Does Not Affect Your Credit Score”
This is incorrect.
Both gas bills and mobile phone contracts will show as accounts on your credit report.
Both will also show payment history, weather negative or positive.
The payment history on these accounts WILL impact your credit score.
Most mobile phone contracts require you to sign a consumer credit agreement as well.
Thanks for your comment and you are correct. There have been some changes in what gets reported to the credit bureaus, and does affect your credit score.
Some utility companies are sharing data, but not with all credit bureaus, and not all providers.
Both utility companies (when switching providers or going from a gas card or electric key to a meter), and mobile phone companies for a contract phone, will check your credit, leaving a search, but there are no guarantees they are sharing data.
Those that are sharing and reporting data, may not be reporting to all three bureaus, but just one or two.
There is a pilot programme being done to use other forms of alternative creditors/accounts to aid in creating a credit score. This can be for those that may have had poor credit in the past, or those with no credit.
Dean, thanks for reading and pointing this out.
Mobile phone companies and utilities have been referenced on credit files for a number of years, so this is not a recent change. Both Utilities and Mobile Phone companies are some of the worst for dishing out defaults and negatively affecting peoples credit ratings.
I have a number of defaulted accounts which are quite old, but I am now paying off via a debt management plan.
Once these are settled and closed, in about 3 years time, the default history on these accounts will still be visible to lenders for 6 years.
This potentially means I won’t be able to get a mortgae for another 9/10 years. I’m 32 and on a good income, I don’t want to be 42 before I start a mortgage.
Would it be better for me to go insolvent via DRO/Bankrupcy, to clear my credit file and reset my score within 6 years instead?
It’s funny how the incentive to pay off defaulted accounts is weaker than the incentive to go bankrupt.
I can’t get credit FULL STOP at the moment anyway.
Go to step change debt charity. They’ll do an impartial free assessment and if they recommend a DMP it will have no fees. They also do DRO and will basically tell you what’s best for you.
Ouch! I’m in the same position. I’m on a debt management plan, I have my own home and I’m looking to sell my property to pay off the debt I have with the management plan. Will I get another mortar to buy a smaller house? I have equity in the house to put down a large deposit.
While it is a mortgage company’s decision, if you pay off al your debt and have a good deposit, depending on a few other factors, like income, and how much your mortgage payment will be, your chances of being approved for another mortgage are good.
You can always inquire with a mortgage lender and inquire about getting pre-approved.
Thanks Jon. Yes, good advice. I’ve been a bit apprehensive about pre approving. eg – rejection. I guess it’s best to know before i put the house on the market. The other thing was .. Im thinking of privately renting while trying to get a future mortgage but apparently you need a good credit rating to rent these days. Not easy.
Some landlords do require credit checks and some you can just provide references to.
If a potential landlord states that credit is an issue, you can look at possibly getting a guarantor, or offering a higher deposit.
Credit is not always a deal breaker.
I have been offered a role with a bank in Ireland however my credit rating is poor and I’ve failed the credit check. The women has given me a week or two try sort my credit file in order to pass but if it’s a case I clear outstanding debts is there a good chance I will still fail?
Unfortunately you cannot increase your credit score overnight.
Did the bank explain exactly what was the problem? And where your credit needed to be.
If there were defaulted accounts showing, and they still had balances, and this was the issue, perhaps entering them into a repayment scheme or if possible paying them off may help.
You need to know the details of what the bank is taking issue with.
Does making a mistake sold claim against your bank affect your credit rating
Making a claim for PPI or packaged bank accounts, does not affect your credit.
how long do footprints stay on your file
like applying for credit card or bank loan as this is ment to have a negative affect if you get declined
Inquiries or footprints, stay on your credit history for two (2) years.
It isn’t so much they have a negative impact on your credit score, it is just if you have too many in a short period of time, then they can impact your credit score.
Creditors may think you are applying around for credit and may overextend yourself.
The credit bureaus now place similar footprints together as one. If you are looking to finance a car or get a mortgage and apply with two or more lenders, these footprints can be classed as one, as to not impact your credit score as it is seen you are shopping around.
Why could i borrow £6000 for a car on hp. But get refused a credit card?
Borrowing money for a car on HP, and getting a credit card are two different forms of borrowing and lending.
Credit cards can be more difficult to qualify for as they are an unsecured form of borrowing/lending. There is nothing to repossess if you were to default on the account.
Not knowing your credit history I cannot say why you may have been declined for a credit card, however, there are credit cards available to those who may have weak credit.
Will applying for a store card affect a mortgage application?
You ask a very good question, and one that cannot be answered directly as there are other factors that can influence as to if a store card application could affect a mortgage application.
In most instances just applying for a store card would not affect your credit rating overall. However, if you have been applying for multiple accounts or many accounts, these inquiries or footprints can lower your credit score.
Also, if the only account you have is a store card, certain types of credit can affect your credit score.
The process of obtaining a mortgage is not just as simple as looking at an applicant’s credit history, although this is and can be a large factor in being approved.
There also is the amount of the deposit, time on their job, how they have paid their rent, and how much they are borrowing.
I hope I have somewhat answered your question. As you can see, there are many factors involved in being approved for a mortgage.
I was wondering if I have a joint bank acc with my partner who has been made bankrupt (2years ago), will this affect my credit rating as I am associated with him?
Is it best for me to close the joint account so that lenders may not find that link? Or will this not make a difference as they will also check my address to which again he is obviously associated?
Please let me know asap.
I am looking to apply for PCP for a car but my credit score seems to have dropped from fair to 2. Also there are various checks on my account carried out by companies I am not familiar with…how can I go about finding out why the search was performed? I used Noodle credit search to check my scoring.
Just having a joint bank account in itself should not impact your credit score. Having the same address can affect your credit score.
Some lenders may look at your credit history and perform a soft search, which does not affect your credit score.
Your credit history will show which companies have looked at your credit history and there should be a number or some ID associated with that company. You can contact the company directly, or go though the credit bureau.
Opening a bank account of your own is a good idea, why still have that tie if not needed.
You can have a notice of dissassociaton placed on your credit history if having the same address is an issue.
One of my previous two wheeler loan account is showing active even if have cleared all due within the period of loan tenure and it’s been 15 months since i have cleared all the dues
If you have any document showing the loan has been cleared, you can contact the various credit bureaus and use their process to update your credit file.
If you don’t have any documents showing the loan has been paid, contact the lender and get a letter stating the loan has been paid, and then again, use the credit bureaus procedure to update your credit history.
If I pay default notices how much will my credit score improve
There is no way to really know how much paying the notices wil improve your credit score.
The accounts have already been defaulted on and reported as such. Paying them off is good as they will then show a zero balance, but as to the affect this will have on your credit score, no one can give an exact number.
If you have the means to pay or settle the accounts, then doing so will not hurt your credit score, but as to how much it will improve it, that is difficult to say as there are other factors involved as well.
Me and my ex partner had a mortgage together, but when we spilt he stopped paying the mortgage for 2 months. Obviously that affects my credit now and it’s very low. Does this now mean that I have to wait 6 years for it to be wiped off or could I slowly build up my credit score by continuing to pay everything on time?
I am sorry to hear your ex placed you in that situation.
Unfortunately, all reported items on your credit history do stay there for a period of six (6) years. This does not mean you cannot look to improve your credit score.
As you mentioned, if you continue to pay your accounts and bills on time, and as time passes, your credit score should begin to climb back up.
My partner is on a credit card repayment plan from her previous marriage and therefore has a bad score. If I enter into a joint tenancy agreement with her could it affect my rating?
Just by entering into the tenancy agreement with your partner will not affect your credit, or credit score.
If the rent is not paid, then it could affect your credit if your landlord seeks to collect the rent and may look at getting a CCJ.
Just living together and having a tenancy agreement does not impact your credit.
You may wish to ask your landlord if they are reporting to some of the “rental bureaus” the credit reporting agencies are now using. If your landlord does report to them, this gets incorporated into yours and your partner’s credit report. Which as long as you pay your rent on time, it may help your partner’s credit.
I hope this helps.
Hi; i defaulted on a credit card in Jan 2010 and only settled in Jun 2011! When will the 6year period be considered up? From when I defaulted? Or from when I settled??
According to Experian, one of the credit reporting agencies, the default will stay on your credit history for 6 years from the default date.
So if you defaulted in January of 2010, in January of 2016 the default should drop off.
If in reviewing your credit history after that time the default is still showing, you can contact the credit bureaus to have it removed,
My wife has a Barclaycard credit card and I had a extra card ordered from this account for my personal use, she lost her job a year ago and since then I’ve been struggling to keep up payments for her, if she was to arrange a reduced payment or Iva type setup, would the impact on her credit score effect mine, we live in the same house and have been married 10 years.
You mentioned you ordered an extra card, are you just an authorised user on the account?
If you are an authorised user, your wife putting the account/card in a debt management plan or IVA does not affect your credit.
If it is a jointly held account, then by placing the account in some form of repayment scheme would affect your credit.
If you are unsure if you are an authorised user or not, you can contact Barclaycard to inquire.
I hope this helps.
She had the card a couple of years before I ordered the card for a extra user, when she signed up for it originally it was in her name only.
I have not paying my bill promptly so for three of them have been refered to the debt collectors recently I got a new job and i have managed to settle all my debts within 4months of the new job. i live in a council flat which the council has offered me to buy. will i be able to get a mortgage or will my defaults affect my score
I would have to venture and say that the defaults, if reported, have affected your credit score. As to the extent, I cannot say.
My advice would be to get a copy of your credit report and also your credit score, and review it. Look for any errors or mistakes, and if the defaults have even been reported.
What were the defaults for? Were they large balances, or small bills like a mobile phone contract?
Not every lender or company reports to the credit bureaus, the majority do, but some don’t.
Review your credit report and see how it looks.
Also keep in mind, as time passes if the defaults are there, they will drop off and your score will rise.
Buying a property is different than getting a credit card or a loan, a mortgage is a secured loan, and if you have a good deposit it can influence getting approved for the loan.
I would like to ask about why a loan that I took out in October 2007 but I have never made any payments or acknowledged as suddenly appeared on my call credit file as a open account for £156 recorded as payments up to date. How can I revove this entry from this credit file. The company is Quickquid.
You have two options in correcting and disputing the error, you can contact the lender directly and have them research it, or contact Call Credit and go through their process.
If you did indeed take out the loan, while it has been a few years, it would need to be reported as your credit report has to be an accurate representation of your accounts.
If however, there has been no contact from the lender, the debt may be statute barred, or no longer owed.
I hope this helps. If you have any further questions, I’m here.
Hi,if I change my workplace will affect my credit score.
No, changing jobs in itself does not affect your credit score.
The only way changing jobs could affect your credit score is if by changing jobs you were earning less and could no longer pay your debts.
I have a joint account with my partner with RBS however it doesn’t show that I have any financial associations on Experian. All of my bills come off of this account and they are always paid on time and in full. Will the fact that this isn’t on my report affect my score?
Also, I have a credit card with Aqua and have had for many months, however this account isn’t showing on my report either. It is concerning as I only opened the account to try and increase my score, but nothing has been recorded. Is there anything I can do to resolve this?
Finally, at the start of the year my credit score was excellent at 988 and has decreased by 167. The only negative things showing on my report are that i’m not on the electoral role at my currnt address (which I am and has been effective since 1st Dec 2015) and I ‘have no settled non-mail order credit accounts.’ As far as i’m concerned both of these are out of my control, but it is affecting my significantly. Is this common or should I take it further.
Thank you for your time
It sounds as though you are on-top of your credit and credit score, by checking it as you have. Hopefully I can give you the answers you are looking for.
If the RBS account you are referring to is a standard bank account, or current account, unless you have an overdraft that you use, it would not show on your credit report, as it is not technically credit.
This should not affect your credit score. The fact any accounts you have are paid out of this account, as long as they are paid on time, can affect your credit score.
If the Aqua account is not on your credit report, you can contact Aqu and inquire as to why. They may not report to all the credit bureaus, or it could be an oversight.
If anything, such as your being on the electoral roll, and it is not being represented on your credit score. you can contact that credit bureau(s) directly and inquire as to what is needed to update this.
Please clarify if being single and being a first time buyer would affect my credit score. Thanks
Being single does not affect your credit score, neither does being married or having a partner. Only if you have joint accounts with someone and the accounts are not paid, or are in arrears will it affect your credit score.
Being a first time buyer does not affect your credit score either. Once you make the purchase and the account is reported to the credit bureaus, this can affect your credit score, in a positive way as you now have an account being reported paid in a timely manner, or negatively if the account falls into arrears, or you have over-extended yourself.
I hope this helps.
It’s complicated. I was with my ex girlfirend for around 11 years who wasn’t good with money/bank accounts etc. She would always go overdrawn/pay fees. Due to this we always had sepearate bank accounts, I always paid the bills out of my account and most bills were in my name. The only joint bill / account we had was a mortgage that I again paid out of my account. My credit rating by experian is in the 900s ( that I believe is very good) were as my ex girlfriends I assume wasn’t very good. Hence the reason I kept our accounts/business seperate. We were never married. We have recently split. The household bills have all been transferred to her name and she pays them out of her account now ( Have no way of knowing this this happens) We still have a mortgage on the house and it is in joint names and Im paying the full amount off each month until we sell the house and she will then get the house and I will come off the deeds and mortgage. My questions are – 1. Can she get a loan against the house without me knowing about it, If she gets into debt through not paying the bills A: Am I liable, can the companies go after the mortgage and me and affect my credit rating B:I know a utility company have instructed a collection agency on the ex girlfriend as there is an outstanding bill that she is liable for ( I paid my final part before changing over and she is shown as the only person on the bill) Again – can they go through the mortgage to collect the money and will it affect my rating. A friend told me that their mortgage company were chased and monies gained by a ground rent company as it was a mistake and the bill wasnt paid on a buy to let house she had. C: Can I dis associate myself from her or will it be until the house is sold and mortgage cleared
Thanks for your time
It sounds as though you kept your credit and bill paying separate from your partner pretty good, which in part has helped you have a good credit score. Yes, in the &00’s is a good credit score.
I’ll try to address your concerns here, if I miss anything, don’t hesitate to get back to me.
As long as your name is not on any of the bills your ex is paying, this will not affect your credit. Most monthly bills like gas, electricity, etc, don’t impact your credit unless the supplier takes someone to court for non-payment, and a CCJ may get issued,
If this were to occur, your ex gets a CCJ for non-payment of a bill, the creditor could look to obtain an enforcement order, which could allow them to seek a charging order against the property. They could do this only if your ex’s name is still on the property.
If this were to occur, it should not affect your credit, but upon the sale of the property that bill would be paid out of the proceeds of the sale. Charging orders secure debts against a property.
Having a creditor obtain a CCJ and a charging order doesn’t happen overnight, and if you are not on the bill or debt, unless some post for your ex came to the house where you live, you would not be notified.
Regarding your ex being able to get a loan against the property, I cannot say with certainty she could not do this. Technically she should not be able to get a loan against the property without your consent as the property is jointly held, but that is not to say a lender may not grant her a loan. I cannot speak for all banks and lenders.
It sounds as though you have been, and are doing all the right things.
You can have a notice of disassociation placed on your credit report, however, until there actually is something on your credit that needs to be addressed, my advice would be to wait and see.
I hope this helps.
I would suggest, if you haven’t already done it, that you advise your mortgage company that you no longer reside at the property, provide them with your new address and request that copies of all communications regarding the property be sent to you.
Some years ago my sister and her husband separated. She moved out her husband remained in the house prior to selling it. She contacted him occasionally to check if there had been any buyers and he kept saying no.
I advised her to contact the bank herself, they informed her that they had already made the deeds available as she and her husband had been there, in person, to sign. He had gone there with his new girlfriend, impersonating my sister, to sell the house without her knowing.
A cautionary tale.
I defaulted on a loan whilst I was on maternity leave and agreed a payment of £40 per month for a year with the lender. Once I returned to work full time I managed to pay the arrears and outstanding balance, this was approximately 3 years ago and I have not had any loans, credit cards, catalogue bills since.
I am now seeking a bigger mortgage but have an approx of 80k equity when I sell my current property, do you think the above will affect the lenders decision on lending to me. My current mortgage has always been paid on time and has never been in arrears.
Have you reviewed your credit history and credit score?
That’s going to be a good starting point.
In the grand scheme of things, if the loan in question has been your only default or account in arrears, it probably is not going to affect you getting another mortgage.
With £80k of equity, and depending on how much of a mortgage you are looking to get, and your other income and debt ratios, again I feel you are fine.
You can always speak to a mortgage lender and get pre-approved as to how much they will lend to you based on your situation. The appoval will always depend on the valuation of the property, but it does take some of the mystery out of it all.
Let me know how you get on.
Thank you so much needn’t have worried it was all fine. Thank you for your time
Hi, I have a secured loan that was listed as a 2nd mortgage on my credit report,
Unfortunately I have now defaulted, and this is showing on my credit report, but will this not show after 6 years ? Or my question is – as its down as a 2nd mortgage ( even though it was a loan ) does this show on my report as defaulted until it is paid off in full ? And will all defaults not be shown after 6 years from the initial default date ? thanks . J
I do have a couple of questions about your situation that will help me answer your questions.
If the loan is a secured loan/second mortgage and you have defaulted, when did this occur? Has the lender been chasing you for payments?
Are you still in the property?
If the loan is a secured loan, or a shortfall from a repossession and was secure, these take longer to be statute barred, 12 years.
The clock starts ticking from the default, or from the time the creditor had contact with you. If they chase you for payment for say 12 months, the six or 12 years starts at last contact. It can get confusing I know.
You may want to clarify if the loan was exactly a mortgage or secured or not.
I hope this helps.
Hi Jon, the loan was a secured loan, secured against the house, it was a loan for 15K but I paid until about 9k balance and my circumstances had changed unfortunately.
It shows on my credit report as defaulted in 24/11/11 and I haven’t paid anything to it since then, It was with Black horse and now they have sold it / past it to Cabot financial ( Marlin )
The loan value is around 9K, and my house is worth £150K with £90K outstanding – so is there an concern there ?
For statute barred would it be 12 years from the date of 24/11/11 , and would it show on my credit report for 12 years or 6 from the default date ? thanks again for the valued feedback. .J.
Thanks for the informtion.
The time frame for statute barred begins with the last creditor contact. If a collection company is still actively attempting to collect the loan, that’s contact.
The time frame for the debt to drop off your credit report begins with the default date.
As to shoud you have any concerns, having an outstanding loan, which is secured against your property, may cause some comcern. I cannot say what the collection company may do. Based on the loan amount they probably couldn’t force a sale as not too many courts would allow this. If they made you bankrupt then your property could be at risk.
Can you afford any form of repayment? That might be an option.
I was cautious of contacting them because of things like dates etc as advised above in your earlier feedback , but now I am thinking of asking them for a final settlement offer . What do you think from your possible experience with past guys in my postion would be a settlement figure offered from Marlin on 9k balance ? What would they have paid for this from black horse ? ( a guess I appreciate that I can’t hold you too . )
Also once the item is off my credit report , do you think I could secure a new mortgage at all and what would be my chances of doing this with this debt still open ? But not showing on my report ? Sorry again for all the questions and your feedback is greatly appreciated. Regards John
Hi Jon, I was hoping that you could maybe give me some further feedback to me comments given below within our Thread, thanks in advance and it it really appreciated. thanks Johnny.
I had a joint loan with a partner and left all the repayments to him but he then entered an Iva and he advised me to make an arrangement to pay as they were chasing me for the money I had no idea an arrangement to pay would affect my credit and I now have a dmp on my credit file which has affected my score a lot. I am still paying off the loan but paying the full amount and no longer in a dmp so how long will it take to get my credit score back up bearing in mind I have around 11 other clean accounts?
Sorry to hear of your situation. Joint accounts/loans can become a problem if one of the account holders experiences financial difficulties.
Without additional information, basially reviewing your credit file, it is difficult to say how long it may take for your credit score to increase. It is something that can take time.
If you are paying the loan, and all your other accounts are reported as being paid as agreed, it can be just a matter of time.
If you are not already, getting on the electoral role may help some.
As you pay down the balance and pay off the once defalted account, your score should start to rise.
It’s hindsight now, but you should have been advised entering into a DMP does affect your credit and credit score. Anything besides the contractual agreed payments, can affect your credit file.
My wife started a small ltd company from home. Will having the business address listed as my home address affect either of our credit scores or does she need to pay for one of those virtual addresses that other companies will provide
You ask a very good question, but just having a business based in your home at the same address should not affect either of your credit scores. The only way it would is if you or your wife guarantee a loan for the business, and the business defaults on the loan.
You can think of the business as a third party living in your home. As long as you have no financial ties to that third party, your credit is not affected.
If for any reason the company were to impact your credit, possibly through a default or payment arrears, you could then do a notice of disassociation.
You also may want to review any insurances you may have on the property as to what they may cover for the company, and also if having a business at home is covered, or voids anything.
so if she makes a directors loan to feed some seed capital then there is nothing to worry about….merely a ‘warning’ or whatever experian will report it as.
After loosing my job last year, my partner and I both took out desperate credit cards to help keep us in our house. Since then we have paid the minimum payment every month but the cards are still nearly maxed out.
We are going to buy a caravan to live in over the next week or so and obviously have to have finance checks done to see if we are able to buy. This is the only option we have at the moment as we can’t afford to rent another house.
Will the credit cards affect our finance/credit checks that we will be having tomorrow? And if so, will they show very bad or should we still get approved for the finance? Thanks.
Having high balances on credit cards can affect your credit score, but it may not mean you would be denied a loan. Much will depend on what your credit score currently is, and the lending criteria the bank/lender uses for the loan. You may have a credit score within the limits the lender allows for a loan.
You may wish to get a copy of your credit history and credit score so you can review it prior, and not have any surprises.
I wish you the best.
Hi I am divorcing my husband and he had agreed to buy me out. The mortgage company has told him he needs to clear his credit card debt in order for him to remortgage. I have put an offer in for a house so this is going to at worse make the house fall through or at best delay things. If I take out a bridging loan and pay off his debt he then remortgaged and pays me back how would this affect my credit score and what would my mortgage lenders approach then be to me. I have already had the mortgage offer and have a clear credit score with no debt and no credit cards
I understand your situation, but cannot say how the mortgage company would handle the fact you are taking out a bridge loan. They may be OK with it as people in some instances need to do this. You may want to run the idea by them.
If you have a good credit score, the loan may not be an issue.
By taking out a new loan, it can affect your credit score as it will be a new debt and can affect your debt ratios, however again, if you have a strong credit score, and no other debt as you say, the impact may be minimal.
I would advise you to be sure your soon to be ex will repay you should you pay off his debts. Something in writing and legally binding would be ideal.
Let me know how you get on.
Hi I’m 18 years old and have got 2 bank loans on my name as well as 2 mobile contracts. I also have 3 credit cards. All of my bills are paid each month and my credit cards are always cleared in full. I recently applied for a phone contract again (I already have a phone which was for my mum and an iPad) however this was for myself. I wanted to know why I would be declined as everything is always paid?
From what you have said, I am unsure why you would be declined, I can only speculate.
Was the new phone contract with an existing provider you are with? Some mobile companies may only allow a specific number of contracts.
There have been some recent mergers of mobile phone companies, was it with one of these?
Have you checked your credit and credit score recently?
In speculation, maybe it was an affordability issue, taking on one more monthly bill, as mobile phones contracts are paid each month. Even with you having no current balances on credit cards, what about the 2 loans, are they paid off?
You my need to look at your income to debt ratio. It could be the one additional mobile contract placed in a different credit group.
Have you asked the mobile carrier why you were declined?
Sorry for so many questions, but get back to me and we can look at this closer.
I have a number of defaults that are due to drop off this year at the 6 year date. Although I will still owe money on these accounts and have been in a repayment plan for the last few years. My score is very poor at 450. My other accounts are all paid on time. How quickly will my score improve once defaults start to go? I am wanting to apply for car finance once the last default has gone but am worried that because I had so many different credit cards through various banks that they will keep their own records longer than 6 years? Even though my score may improve, will they take into account my previous account with them after 6 years? Or would this be classed as unfair use of data?
It can take time for one’s credit score to rebound back.
I would suggest after you reach the timeframe for the defaults to drop off, to review your credit history and score. If you follow some of the tips mentioned on this blog, such as getting on the electoral roll, closing any unused accounts, but not your oldest account, It can improve your credit score.
When will you have the accounts paid in full? This can help your credit score as well.
As to the banks keeping records longer than six years, I am unsure, but it may be doubtful. If an application for credit asks if you have ever had an account with them previously, then it may be an issue.
I don’t know if a bank used any infromation they had on you after six years is an “unfair use fo data”, my initial thoughts are they may be within their rights to do so.
Financing a car can be a secured loan, and with a larger deposit, buying the right affordable car, you may find it not as difficult as you think.
I hope this helps.
I have a bank insurance for my portable items (phone, tablet, computer etc.), and I lost 2 of my items over the period of 2 years and claimed them through it. So, does that count and affect in the score too?
No, claiming on an insurance poiicy does not affect your credit score.
The insurer may limit the number of claims you can have within a certain time frame. but it has no affect on your credit score.
Appreciate the feedback and the prompt response.
I was only concerned if the bank shares all these info with other authorities later so it might affect my future insurance, loans, or any credit card requests. Could it have any adverse impact on them?
As one of my friends had a similar case and his credit card application recently got rejected, not sure if it was related to this or not, but he doubts that multiple claims for the lost items affected his application somehow. Any thoughts on that?
To my knowledge and experience, insurance claims are not reported to any credit bureaus, and there for would not affect a credit score or someone’s application for credit.
Having recent or multiple claims on an insurance policy MAY affect a future insurance policy being issued. It would be the same as if someone had multiple car insurance claims, but it only affects the issuing or premiums related to the insurance, not credit.
Hi, I’ve been steadily building up my credit score over the past year or so and it’s been going well, although I’ve noticed recentlymy score isnt moving up as quickly as it had been doing. My question is, I have 2 credit cards and 2 catalogue accounts all with zero balance (nothing owed), would it be best for my credit rating to cancel these or leave them and keep them at zero balance? I’m in a position where I don’t really need to use amy credit cards and was wondering, for instance, does it look better having available credit which is unused or does it look better not having it at all?…. is it unfavourable for a future lender to see that I already have a lot of available credit. What’s the best way to use catalogues and credit cards to build up my score quicker? (Just FYI I have no defaults or judgements or anything at all)
You ask some good questions, which can be difficult to fully address.
Closing some accounts may help your credit score, possibly the catalogue accounts, however, you do not want to close an account that may be your oldest account. Your oldest account shows how long you have been credit active, and in the credit bureaus.
As to how a potential lender may view the accounts, or lack of accounts if you close some, that will vary from lender to lender, as each may use a different lending criteria to grant a loan or credit.
Having a couple of credit lines/credit cards open is fine, and since you have zero balances, that is even better.
As to why your credit score is not going up as quickly as it ws can be it may have reached the point of where it is going to be. Not everyone can push their credit score up as high as others.
Are you on the electoral roll? This can help as well.
Hi, thanks for replying. Yes, signing up to the electoral roll was one of the first things I was advised of when I first tried upping my score. I’d heard that spending little and often on credit cards and paying off fully each month was a good way to build a history… I was just wondering if this was a myth or not?
Using the credit cards and paying them off in full does show a good use of credit and finances. I would be unsure how it would improve one’s credit score.
It is a bit of a myth that keeping a balance on a card helps your credit score.
There seems to be conflicting information about how using a credit card or credit line aids your credit score. My advice has been, and still is, if you can pay off the balance each month, then do so.
Hi There, me and my wife recently applied for RTB our council house, she has good credit score 901 , mine is poor due to I default for £348, due to drop off on 19/03/2016, 1 missed payment on credit card 4 months ago , I also have nearly maxed out several credit cards, we have no financial associations connected with my wife ,the gas,electric,water bills are all in my name only, is it better for my wife to apply for mortgage on her own ,if so, what should I do regards utilities in my name, I am going to keep paying them , and will still be living at the address if she’s approved , I understand I may have to sign a notice stating I will have no claim on the property should the home be repossessed , but should we change the utilities into her name only prior to applying or just leave as is,i’m assuming she would have to go through an affordability check, which I have done and she could still pay everything incl utilities, and still have 30% wage left.
I could pay down my cards, a bit and my default would be gone by 19/03/2016 which should improve my score ,apart from 1 missed payment.
Thanks in advance
Keeping the utilities in your name should have no affect as to if your wife is approved for a mortgage or not.
Who had previously paid the rent each month, and was listed on the property?
As to if you should apply with your wife, even though you have poor credit, that may be a question to address with the council, or who will hold any mortgage. It may be OK if you are both applying, however, if you have any credit issues that could affect the property, such as any CCJ’s, or creditors looking to seize assets, then obviously you would not want to be on the property.
Thanks for your reply.
I paid the rent and was listed as a joint tenant , but when we applied for RTB, we said that only my wife would be applying to to buy so the offer letter will be just in her name, I have no CCJ’s or anything like that, but I thought in terms of being accepted , she has a 901 good credit score and would pass an affordability check, so we would get a better interest rate, I just wondered if me previously having utilities in my name would effect application when she applies, I suppose these are questions for a mortgage broker.i suppose changing the utiliies into my wifes name now may have an negative effect on her score, prior to applying ?
Changing the utilities would not affect her credit score, and keeping them in your name will not affect her chances of getting a mortgage.
You are correct that with your wife having a good credit score, it should get her a better interest rate on a mortgage.
You can address all this with a mortgage broker, and they should confirm my thoughts.
Let me know how you get on.
Dose anybody know whether employee loan (under £10,000) affects credit score and whether lenders can see that as a debt? I thought they can’t as it’s not high-risk and put through company payroll.
Unsure of any others here have any experience with this. If someone does, feel free to post.
The only way the loan would affect a credit score is if it is reported to the credit bureaus. i would guess it is probably not, as employers/companies do not usually report to credit bureaus.
As to if a lender can see the debt, again, only if it is reported to the credit bureaus, or disclosed on a loan application.
If the loan application asks about all outstanding accounts, it should be disclosed, failure to do so if asked, may be seen as fraud.
I hope this helps.
I’ve been unemployed due to disability for 3 years now (was a student before that) and have one credit card which is paid off in full on time every month from mine&husbands joint account. I feel trapped as scared to do anything financial because I have zero income (not eligible for benefits so husbands income is sole income for household), I’m afraid to damage my credit rating. I’ve never seen a number just a report that seems ok and accurate (never had any debt or problems but no idea how to improve it because I have no income and I know rejections don’t help matters). Is there any way of improving my credit score on zero income-as I said, not through choice but illness.
That is a real good question, and there are a couple fo things you can do.
First I may ask, why are you concerned with improving your credit score? I can understand why, but with no income (for now), you would not be in a position to request credit.
But with that being said/asked, you can do a few things.
First find out what your credit score is.
If you are not on the electoral register, do so, as this can improve your credit score.
You are corrrect that by not applying around for credit, having inquiries or footprints on your credit, this helps your credit score as well.
By paying your credit card off in full each month helps it as well.
It may be that your credit score is as high as it can be for the time being. You are not very credit active, so there is only so much you can do at this time.
I hope this helps.
I applied for a loan back in February for a new car and was accepted at my chosen amount of £6000 but in the end didn’t accept it. What are my chances of being accepted for a credit card in the next couple of months? I’m looking at getting one to pay for my car insurance which is due in August.
Was the loan for the car a secured loan? Secured by the car, or was the loan a personal loan you were going to use to purchase a car?
I ask as secured loans are underwritten/approved differently than a credit card. Credit cards are unsecured loans and can, in some instances, be more difficult to qualify for.
Do you know your credit score and have you reviewed your credit history?
One thing you can do is to check your eligibility for a credit card using one of the eligibility checkers that is available: https://www.moneysavingexpert.com/eligibility/credit-cards/
This will give you a good idea as to if you will be approved for a credit card, and has no impact on your credit score.
I am curious as to why you are getting a credit card to pay your car insurance?
Most insurance companies offer monthly payments under a finance agreement, and may be much cheaper than using a credit card.
I hope this helps.
I bought a house and had to completely renovate it. I had a loan to do this and a credit card.
That was 2 years ago and its come to the time were we want to remortgage to consolidate our debt. in the last few weeks though I have had to take another credit card out and up my loan to finish off the house. Will applying for this much credit in a short space of time have a massive effect on my credit score?
It is currently 504 on Equifix. But I am worried that when the new report comes that my score is going to go right down.
Thanks in advance
Applying for additional credit lines in a short period of time can affect your credit score. You can always check your score prior to applying to remortgage the property to see what affects the new lines of credit may have had.
With that being said, remortgaging a property is underwritten or approved based on various criteria, and one is how much equity you may have in the property, and also debt and income ratios.
If you have a solid amount of equity, and show good affordability, this can offset if your credit score is a bit low.
Hi, I live with my partner and have done for almost four years. I have a very good credit rating and have 0% credit cards and a mortgage but he has a bad credit rating and cannot get credit. However he has just got a credit card with a £200 limit on it. I am worried that if he doesn’t make the payments or is late with them whether it will affect my credit rating. I have read on several forums that it should not affect me as the checks are against the individual. However, we took out a joint bank account this year and I have now read that in doing this his history will affect me. It is only a basic joint account as it was all we could get so I don’t think he/we can get in debt with it. Is it wise to close the account or is it too late now. I want to remortgage my house this year and am now worried that I won’t be able to.
Only accounts that are in both your names will affect your credit, and only negatively if the loan is not paid as agreed.
The credit card in his name would not be reported on your credit history, and will not affect your credit score.
As to closing the joint account, uually to close an account it neds to be at a zero balance. If the account has ben paid in full, and you have concerns about your partner using the account, then closing it could make sense.
I was just declined a mortgage because of a store card debt. I had no idea it was still outstanding as the post went to an old address and I no longer have the card. Is only £50 but has taken my result from 5 stars to 1 (I checked my rating a year ago). If I pay this immediately, can I talk to the bank/credit eater to adjust it?
Yes, paying the account will help your credit score, but it can take time.
You can speak to the credit bureaus, but it will not change the fact of the account not being paid and how it is reported. Credit bureaus have to report factual information egarding someone’s credit history.
You can try to speak to the bank or mortgage lender that declined you and explain about the account and how it has now beeen paid. If that was th only negative mark on your credit history, you can ask them to reconsider the application.
They may or may not do this, but it is worth the effort.
I wish you the best.
I looked up my credit score Aug 2014 to find I had a CCJ’s of £902 plus a couple of catalogue defaults totaling around £1,600 plus hire purchases (that I was paying weekly) totaling £408 & a catalouge (I was paying weekly) totaling £1.793. I got intouch with all these companies & paid everyone ‘IN FULL’ in Aug 2015 plus paid an extra £25 charge to the courts for certificate of satisfaction regarding the CCJ. My question is…
I am still showing as very poor & a 1 out of 5 at Score of 502 when will all this improve & my score rise so I could maybe get a 1 st time morgage?
Yes, by paying the accounts your credit score will eventually rise, but this takes time.
Are you on the electoral roll? If not doing so can improve your credit score.
Also by saving a good deposit you can also improve your chances of being approved for a mortgage.
You may also want to consider a co-signer or guarantor, or if a relative has equity in their home, they can pledge that equity as a deposit.
I recently opened a new bank account, and also changed my gas/electric supplier to Npower. My experian score has dropped because it says I have opened 3 new ‘accounts’ in the past 6 months. This is pretty annoying because two of them are the gas and electricity. I am planning on applying for a mortgage soon, and what I wanted to know was will a potential mortgage provider hold this against me, or will they discount the information from Npower – surely it is unfair to penalize me for trying to get a decent tariff?
You bring up a very good point, why should your credit score be penalised for getting a better deal on utilities?
Unfortunately, there is no good answer. If someone looks at your credit report, and quries it, there is the possibility of it reducing your credit score. I am unsure why utility providers would do such a “hard” inquiry except to see if you have any collection accounts from other utility providers.
How much did your credit score drop?
The reduction may be negligible in that depending on the credit score the mortgage company requires, you may still fit into their criteria and be approved.
You can also discuss this with the mortgage company you are considering applying with prior to making application. Know your credit score and discuss your score and the recent changes and inquire if this will be an issue.
It may not be a problem at all, as you are reducing your overall expenses, which can improve your income and expenses ratios.
Let me know how you get on with this as it is an important issues and one we have not experienced often.
If my parents do not have an email address and use mine when enquiring about loans etc will that effect my credit rating?
Just allowing your parents to use your email address does not affect your credit history. Email addresses are not associated with credit histories.
We are on a dmp plan,and we have been renting privately,they are selling the house so we need to rent again,we both work but will we be accepted with our bad credit. we have made payments on time.
If your landlord gives you a good reference that is a very strong thing to use when speaking to a perspective new landlord.
If a new landlord just basis their decision on credit scores, it could be a problem, but you can have them contact your previous landlord (again as a reference) and show you are working and paying your bills.
If need be, you may want to offer a larger security deposit if the landlord still isn’t receptive.
I hope this helps.
Hi,our landlord has just given us notice,so we are looking for some where to rent.But we are on a dmp plan,we have no ccjs,and the landlord has given us a good reference,and we both are working.I know our credit score is very poor.But will we get accepted ,if not what do we do?
I wonder if you could help. My house is on the market and I have just checked my credit file to find that I have a default on there for £100 which I paid in full 4 months ago. I contacted the creditor to say that I had paid it off and they apologised and said they would update their system which would then update my credit file. Does this mean the default will be removed? Thanks
If the default was an actual default on a loan or bill, your credit report will show it has been paid, but it will still reflect that there was a default.
Credit histories have to be an accurate picture of how accounts have been paid.
The fact you have paid the account will help.
Hi my friend! I want to say that this post is amazing, nice written and include approximately all significant infos. I?¦d like to see more posts like this .
Im currently trying to build up my credit score,i have a ‘account in default’ from 3 or 4 years ago from virgin,i had a half price offer with them for tv for 6 months,after that 6 months i contacted them to cancel and they said i didnt have an account with them,i said i clearly did as they had been taking direct debits anyway i said i was cancelling and they came to pick up the equipment,according to my credit report its down as in default,how long should this stay on my report thanks
Everything stays on your credit history for six (6) years.
Is there a balance still showing as owed?
Hi, I have found from personal experience some banks do operate a “blacklist” system, I joined my bank (TSB) 8 years ago and about a year later went into a Protected Trust Deed after being made redundant. The Trust Deed was satisfied and cleared and all references are gone from my credit files and I score very high on each. During the Trust Deed I was never overdrawn and gradually my salary increased and I took on a high interest credit card to build my rating )balance paid monthly). In theory I tick all the credit boxes i.e. high income to outgoings, with employer 6 years, at same address 20 years however TSB refused me a credit card on the basis of “adverse credit information”. I have since found out that my file was marked with “Credit Product Decline” (CPD) which stays on forever and basically stops me from getting credit from them. Not only is this unfair, though probably not illegal, it means I have wasted years trying to build a relationship with a bank that was never going to assist me should I ask for a mortgage etc in future. Anyone else encountered this elsewhere?
While unfair, it would seem some banks do keep records of their own longer than the six year life span of a credit history.
In your PTD did you include any TSB accounts?
I am curious to hear if anyone else has experienced this.
Thanks for sharing this.
Hi Jon, No TSB accounts were included in my PTD, I just wish they would be honest and not blame the fabled credit score which as I said is high with all credit reference agencies.
Thanks for the follow-up and again sharing.
My boyfriend has a ridiculously low credit rating. He has defaulted in the past and currently has a default from Sept 2014 for £183.
I am looking to the future and how to improve this so we can get a mortgage together one day. My credit rating is very good and I currently have my own mortgage.
He can’t get any credit. Not even with companies who claim to help people with bad credit.
I have tried calling his bank for an appointment but they just said they have their own internal checks and to apply for an overdraft in a few months. I have contacted the company who he had the debt with (QuickQuid) who sold on the debt. The debt collection agency have told him that they consider the account closed and will not chase for this.
I’m not sure if we should just pay it? As it’s with the debt collection agency if we pay it will they update the credit reports to show it as defaulted but settled? Or does QuickQuid need to do that as they put the default there?
I’m trying to decide if it’s worth just getting a guarantor loan of some sort and putting the money to one side and using it to pay it back each month? But then we end up paying interest but least it might help?
Sorry for the great deal of questions. I am just at a loss. There seems to be no help for those trying to put this right from their youth!
Help from anyone is appreciated!!
It can be a struggle and difficult for someone to rebuild their credit and increase their credit score, but it can be done, and it does take time.
Does the default your boyfriend have show a balance on his credit history?
Why a collection agency would have an account with a balance and consider it closed is beyond me?? I would think they would want to settle the debt and get paid.
If a balance shows on the default, paying the account will clear this, and in time help improve his credit score.
Is he on the electoral register? If not, getting on this will help a little.
Getting a loan, guarantor or otherwise, if it is reported in his name on his credit history is an option, but as you mentioned, you will pay interest.
There are high risk credit card companies out there, Capital One has one such card, and there are others. He can check his eligibility for these cards https://www.moneysavingexpert.com/eligibility/credit-cards/
and see if he may get approved.
If he can get a credit card, even with a low credit limit, say £200, he can begin establishing himself again.
It may just take time, and showing a zero balance on the default.
I hope this helps.
I was baffled about the debt collection agency too. I work in legal accounts and we would never turn away a late payment! I have emailed them asking for their bank details and to confirm that on receipt they will have the credit file marked as satisfied.
He is on the electoral register and I have tried the credit cards. He really can’t be accepted
I will get the £183 paid and try an overdraft with his bank. If that fails I think the guarantor loan maybe our only option.
Thanks for your reply.
I just added someone to my car insurance. Will this affect my credit?
Adding another driver or someone to your car insurance does not affect your credit or credit score.
I refuse to register on the voting list, due to a very traumatic action in my life,which will affect my credit score.
I have No credit cards, nor do I have any outstanding debts
I had a default from a company after I had paid up my £89 , which I owe them.
This has really mess up my credit score. I will address this company again for them to lift this default.
What can I do? I would like to take a loan out. Have a few things to do in our home. Please advise
You could consider a guarantor loan if you have a friend or family member willing to stand as a guarantor for you.
I am trying to build my credit score. Is there any amount of money should I keep in my bank acccount or will it in anyways would affect my credit rating.
The amount of money you have in your bank account has no affect on your credit score. Credit reports do not show bank balances.
My partner has been left with some debt from his previous relationship and is trying to get himself sorted so has been to his bank to apply for a loan so he can consolidate all the debt on various credit cards to one manageable debt. Unfortunately this request has been refused in the main due to his credit score.
He is registered with Experian and in January his credit rating was very good, when he re checked in March this year his score had reduced to poor. He was confused by this as he had taken out no more credit since his previous check so he has no idea why the score has decreased so dramatically. Upon querying the same with Experian they said the only thing can see as changing is his address but this was changed last June, they said it can happen?
Could this be the reason for the change in score? My partner moved in with me twelve months ago and is on the electoral role for my address. The address is not linked to a bad credit rating as I have an excellent credit score so at a bit of a loss to understand why this could affect his score?
Please advise if the info he has been given us correct and if so what can he do to increase his credit score.
Thanks in advance.
I am unsure as to why your partner’s credit score would change dramtically so quickly. You were right in contacting Experian, I would have thought they could have provided a better answer.
Changing addresses can affect a credit score, but minimally, and by being on the electoral roll and no poor credit being associated with the address, I would think the move would have no ill affect.
Why was your partner denied the consolidation loan?
When did he apply for this, and did he apply to just the one bank or did he apply around?
What is the timing of applying for the loan and when his credit score dropped?
How much did his credit score drop?
You stated your partner had some debts he was trying to sort out, were they in arrears?
The only thing that comes to mind is maybe there were some recent inquiries that may have reduced his credit score, or some accounts he was trying to sort out caught up with him.
Get back to me and we can look further into this.
Thanks for your great services in educating and advising people through this medium.
Please I have some difficulties with raising funds to fund my newly opened company, I have looked at options for unsecured loan to the tune of £75,000 , which is the capital I need now to fund my new company, but I have realized how difficult it is to get a commercial loan.
I am a home owner and the equity on my mortgage is about £30,000 (the value of the house is £110,000) which can not guarantee me a loan to the tune of £75000.
Please kindly advise me if I can apply for an unsecured loan from three different companies that can give me £25,000 each? What are my chances, given that I would guess three different lending companies would run a credit check on my name same period?
Secondly, I have personal loans that I am still paying off. I have a personal loan from my bank for two years repayment plan which I have been consistently paying off without default, and six months ago I took a loan from Sainsbury to refurbish my house which I have been paying also without any default. I have paid my mortgage consistently for ten years.
What are my chances of getting money to fund my company with all this loans I already have?
I have a full time job, with an income of £48,000 per annum, but I also engage partly into a family business and have done my company registration to run my own company independently. I have all the business plans laid out and I have engaged in this business for the past three years in a small scale and want to expand my market base.
Thanks for your audience am looking forward to read from you, please free to advice me and you can give me options am ready to go with any advise from your company.
Hi there my mortgage exchange and completion is coming to a close in a few days but I enquired/applied about a top up on my personal loan for a home for improvements which they approved I haven’t signed anything saying I want to receive the loan yet will this affect the mortgage at this stage
That is a good question and one difficult to answer.
Was the loan with the same lender or was it a different lender than where you are receiving the mortgage?
Was the lender for the personal loan aware you are waiting on a mortgage?
If the mortgage has been completely underwritten and no more queries need to be done on your credit file, then the application for the loan may not be an issue.
Having not accepted the loan yet means that only the inquery on your credit file could be an issue.
I am going to make an educated guess that just applying for the loan top-up will not affect the mortgage. Had you accepted it prior to receiving the mortgage, and the mortgage lender was aware of this, it may have affected the mortgage only from an affordability issue. The new loan or increased payment, would change your debt to income ratio.
However, if you have a strong credit score and can afford both debts, then it would not be an issue at all.
Once you have the mortgage, taking out any new loans is between you and the bank that grants the new loan.
As you can see there are a few varibles that complicate matters, but again, I think you’ll be OK.
Let me know how you get on.
My credit score is 700 and I need to improve it in order to get a better mortgage deal (I have about 70k equity and want to borrow an additional 10k for home improvements and get a lower interest rate)
I have a default which was applied in October 2015 by a catalogue company when they refused to extend a 3 month reduced payment arrangement by a further 2 months (I owed £240 in total). The debt was sold to Lowell and the default is now in their name; I am currently following a process to try and get this removed on the grounds of them not having correct copies of my credit agreements with the catalogue and not having permission to process my data. I’ve read this can be quite effective if you’re persistent.
However I also have an ongoing arrangement to pay on a Vanquis Credit card going back 2 years, no missed payments, just reduced by arrangement.
I have very little other credit and everything is up to date including mortgage and utilities, and I’m on the electoral register, in full time long term employment and have lived at the same address for 23 years.
Can you tell me what is probably having the single biggest impact on my credit score- the default, or the arrangement to pay?
As I said, I’m working to try and get the default removed as I can’t wait 6 years for it to drop off; however if the arrangement to pay is a major problem I’ll have to end it and resume normal payments but how long would that take to impact favourably on my credit score?
I would say the default is probably the most damaging to you credit score. However, with that being said 700 is not a bad credit score at all.
Have you discussed with a mortgage lender what credit score you need to qualify for a new mortgage with a lower interest rate? If not, that may be a good starting point.
If you can get the default removed, or at least show it paid, that should help your credit score. However, it may not cause it to rise overnight.
If you only owe £240 can you afford to just pay it and have it showed satisfied?
I understand your desire to have things set straight, but there is an old saying, do you want to be right, or do you want to be successful. If £240 is keeping you from a possible better credit score and new mortgage at a lower rate, which saves you thousands over the years, it may be worth just paying the debt off, if you can.
If I receive a parking notice by a private company and not pay the notice (invoice in other words), would they be able to put a black mark on our credit rating?
Of course I understand if the case is taken to court, that might be different, but if not, can they put a black mark? They claim they can on threatening letters, so curious to know the truth.
If the parking company reports to any credit bureaus, then yes, the unpaid fine could affect your credit. Odds are that they don’t report to credit bureaus and just use this as a threat.
However, you are correct that if they take it to court, and you lose, and they get a CCJ issued against you, this will go on your credit history and have a negative effect.
Just wanted to enquire, i am appling for a mortgage on my own and it has been agreed in principle but subject to credit check (santander). My rating is 983 but i live with someone whose rating is only 525, we have a joint bank account only but this has an overdraft facility. Is this likely to affect my chances?
As you already know your credit score, if the overdraft is reported to the credit bureaus, it is already a part of what makes up your credit score.
If it is just you applying for the mortgage, the person you live with has nothing to do with the application or loan.
Firstly, many thanks for helping all these people. I read through a great deal of the comments, it seems like you’ve helped them all so much.
I had an IVA just over six years ago, and it’s just fallen off my credit report. Since then my credit score has rocketed, I’m guessing because I’ve been so careful otherwise over the last few years. Experian has me at 989 and Clearscore (Equifax) has 389. Last month Clearscore was just 182, I only just got Experience so I don’t know what it was previously. Firstly, how can there be such a big proportional difference between the two agencies? Secondly, I would like to apply for a Amex Platinum (for the perks) but will they take my longer history into account or do they simply have access to the current situation?
Thanks in advance of your comments, they’re invaluable.
Thanks for the kind words.
As to why there is such a hige difference in your credit score with one bureau and another I cannot say, but I can speculate some.
Different credit reporting bureaus use different factors or measures in how they come to calculate a credit score.
Review both reports and make sure the one with the lower score is accurate in the information. Is it missing anything the other report has, or is it reporting anything negative.
When you apply for any credit now, Amex included, they will only be able to view your current credit report/history. Anything that has dropped off they cannot view.
In their underwriting process they may ask the broad question, have you ever been bankrupt or insolvent? That question is not asking about the past 6 years, but ever. Just to make you aware.
My partner and I are currently looking to apply for a mortgage. I don’t really have any bad credit – I went into an unmanned overdraft a number of times during the summer before I started work but now my entire student overdraft has been repaid.
My partner on the other hand had to do a debt management plan before he met me. We have been together over a year now and he has had no money troubles however he has had a credit card with a limit of 3000 pretty much used to its limit (until my parents very kindly have recently loaned U.S. The money to pay it off). He has also been dipping in and out of a planned overdraft during the time we have been together. This has a limit of 500 pounds.
He has not had any ccjs and hasn’t defaulted to my knowledge since his repayment plan.i have a car and some furniture on finance with regular repayments so I’m hoping my credit is quite good… What about my partner? I am really concerned these things will affect our mortgage eligibility or make our repayments high. His credit card has now been paid in full and he will not go into his overdraft again. What are our chances of getting a mortgage without ridiculous interest in 6 months time? Partner has a credit card which will be managed carefully and used purely to build credit. I am getting a credit card too for the same purpose.
Sorry for the long message but I hope you can help me, I’m getting worried now!
And of course I mean UNPLANNED overdraft, not unmanned! I should also add that prior to paying off his credit card, my partner was regularly making the minimum payments on it thanks again ,
There are many factors involved in being approved for a mortgage, and yes, credit score and credit history is one of those factors.
There are other factors involved as well, the amount of the deposit, the price of the property, time on your job, debt to income ratios, etc.
Just using your overdraft, planned or not, only affects your credit due to their being an outstanding balance, so once you pay the overdraft back, it is cleared.
Beining in a DMP does affect one’s credit, however, from what you have said your partner has cleared that and is doing fine.
You may want to get copies of your credit history and credit scores to know where you stand. You can also speak to a mortgage adviser and find out what they require to approve someone for a mortgage.
As you can see, it is not always just about credit.
Let me know how you get on and good luck!
Thank you very much, I definitely will let you know
I’m currently a student studying in Oxford, and I graduate in 2020 and plan to live and work in Canada, I’m wondering, when moving abroad does your credit score follow you so to speak? I have a default which I’ve paid off and it’s in the mid 700s. Upon moving will I still have it or will I need to start from scratch in the new country?
Unfortunately different credit bureaus are used in different countries, so the chances are that your credit score from here in the UK will not follow you to Canada.
You can look at getting letters of reference from any banks you currently have accounts with, and also depending on the bank you open an account with in Canada and how much of a deposit you initially make, and also what your wages will be, and having them deposited in that account, while not something that gets reported to a credit agency, can aid in getting a credit card or overdraft through that bank, which will be reported to the credit bureaus there.
If you are concerned about needing credit while you live there, any credit cards you may already have here in the UK, can be used there as well.
If any banks or credit card companies you deal with here in the UK, have a sister or affiliate bank there in Canada, you can inquire as to if they can aid you as well.
I have a couple of questions. I was discharged from my IVA with an unsuccessful completion due to various health issues being unable to work at the time. I have since recovered and am earning a good wage. I currently owe less than 4 thousand pounds in total after checking my credit file on Noddle it informs me i have a score of 511. I know this is terrible but even when applying for credit building credit cards i’m having no success at all. I’ve just applied for the electoral role and am going through and paying off any historic bills.
How will being on the electoral role effect my credit rating?
Do Pre-Paid Credit cards have any positive effect?
Would being an authorized user on a credit card of some one with good rating help my credit rating at all?
You ask some good questions here and bring up some good points.
Being on the electoral role helps your credit as it is a tool that shows and verifies your address, and that you reside there, this helps lenders in making a decision to grant a loan.
The only way a pre-paid credit card would help your credit is if they report to the credit bureaus, and unfortunately, many pre-paid cards do not.
Being an aurthorised user does not help your credit either as these are not reported on your credit history, but the actual card holder’s credit file.
By continuing to pay off the accounts, your credit score will slowly rise.
You can also look at some of the bad credit credit cards that are available, and use an eligibility checker to see if you may be approved prior to actually applying.
I’ve just applied for a loan for £7.5k but wasn’t offered their lowest headline rate. I plan to decline the offer. Will this stay on my credit history? I’d like to apply with another lender to see if they can beat the APR but am worried I might be declined for seeking too much credit over too short a time (which I’m not doing – I’m just trying to get the best rate).
I understand what you are saying and it can be a double edged sword.
You want to shop around for the best interest rate and loan deal that fits you best, however, each inquiry can look bad on your credit.
The initial loan you applied for and were approved for and now wish to decline, will only show as an inquiry on your credit report. Should you apply to another lender and they look at your credit, that inquiry will show as well.
A couple of inquiries alone is not going to reduce your credit score, and the fact that they are limited to a short time span and you don’t continue to apply for loans will help.
If you know your credit score, you can always inquire with a lender prior to actually applying and ask what interest rate they may be offering for credit scores in your range, and also the amount of the loan and how long you wish to borrow the money.
Jon, can a bank report a consumer loan to a guarantor’s credit report with out any default on the loan?
It can depend on the lender, but yes. Technically the guarantor has had their credit history looked at and if the borrower were to default they would be responsible.
If the guarantor were to apply elsewhere for a loan for themselves, the loan they guaranteed needs to be taken into consideration for the new loan they are applying for.
hi i have just checked my account i have many thing on my name and likned adresses that are not mine how do i take these off
If you are referring to errors on your credit history, you can contact the credit bureau(s) in question and each one has a process to correct any errors or ommissions.
You can visit the credit bureaus web site for details.
I go through regular “clean ups” on my account/s and have recently applied for a new current account, a new balance transfer (0%) credit card and would like to apply for a cheap purchase credit card. I will also need to borrow a sum in a month or two for some house work, but all of this is a minimal increase in total debt out there… My worry is, if i apply for another credit card for a cheaper rate (which makes sense re shopping around) it will have a negative effect on my rating and therefore affect my potential for the loan application next month!
I’m sure there is no straight answer to this, but would you hold fire on the 2nd credit card and do the loan application first?
It is good to hear that you periodically check your credit and insure it is as it should be.
You are correct, there is no clear answer here to your question.
It may be that applying for the credit card and loan will be approved and fine as you have a good credit score and qualify for both.
If you are concerned, which is more important, the loan or the credit card?
If it is the loan, and you do not need the credit card immediately, then wait for the credit card.
You can always check your eligibility for the credit card after the loan has been approved. Eligiblity checkers do not impact your credit score.
Would applying to have car insurance paid monthly a short time before making a mortgage application be a bad idea? I have not applied for credit for a long time but pay off credit cards.
Are you looking to pay the monthly insurance premium with your current insurer, or a new insurance company?
While an insurance company may be extending credit by financing the annual premium over 10 or 12 months, this should not affect you being approved for a mortgage.
I am switching to a new insurer and wanting to pay monthly but was afraid this would affect any mortgage application we might be making in the couple of months after this.
Making in the next few months I meant to write!
Just looking for some advice. I have 2 mobile phone accounts on my credit report, I had no payment issues with these they were all on time.
However they are still showing on my report but obviously they are closed accounts! Am I best getting these taken off? Or could that actually go AGAINST my store.
My thinking is that if they are removed it will go up as the accounts are inactive! And I have read that accounts that aren’t used should be close.
You ask a good question, and bring up a good point.
If the accounts are closed and showing zero balances, they should not have much of an effect on your credit score. So if you could have them removed, which you may not be able to, you would just have to wait the six (6) years, would not impact or raise your credit score.
If they are old accounts, even showing zero balances, meaning they go back many years when they were first reported, you would not want them removed, as they show how long you have been active with credit.
Sorry, no real answers here. I suspect those accounts are not going to change your credit score.
I have read everything & what a fantastic post & discussion – thank you!
I also have a question, I bought my first house in Dec 2015 I am the only person on the mortgage and bills at this house. My partner was responsible for all the bills on our old house but got into arrears and defaulted on his British Gas account. The only reason we found out was because I checked my credit score & I am 338/700 on clear score. When I bought the house I had an excellent credit score.
It turns out the bill that went to arrears was in both our names – I was not aware of this until now. Also we have received no letters despite my partner calling them to tell them we had moved & them saying they would forward any new letters to his new address if there is anything outstanding.
Is there anyway this can be taken off my credit file? If not how can I boost my rating – I need to remortgage in Dec 2020 and I am worried. I am also extremely gutted as I wanted to buy a field & car but I checked everything and it seems I will struggle to get a loan now. Also how can they put a default on your account without telling you it is even outstanding?
Really appreciate your help and advice.
Unfortunately if the bill was in both you names and did go into arrears and is reported on your credit history, it cannot be removed. Credit bureaus are required to show accurate information.
However, if your partner is willing to pay the bill, by paying it and showing a zero balance, this will aid in bringing your credit score up.
Regarding the remortgaging in 2020, once the bill is paid, this will help, and the fact it is a secured loan, and you may have equity in the property will make the remortgage easier.
P.s my partner is more than willing to call, pay anything and do/say anything to get this removed from my file as he feels terrible about it all
This is one that my employer can’t answer.
If a customer brings in ID on each occasion, e.g. driving licence on first occasion and passport on second occasion and keeps on doing this and one has a middle name and one doesn’t, we have to change their name on each occasion…will this affect their credit score.
I work in a bank and I am concerned if we keep doing this, lets say 6 times in 6 months this will affect their credit score.
Thanks in advance.
Is this person applying for credit each time they come in, or is this just a hypothetical question.
I ask as if you are a lender, I am unsure why you have to change their name, such as adding a middle name. As long as their details are the same, first name and surname, and address, etc, it should be fine.
If they are applying for loans each time, then this will affect their credit score. And you can always ask them to be consistent in the form of ID they bring in.
I would think both a drivers licence and a passport would have a middle name. Both mine do.
I would like to ask a question. If I apply for a remortgage or a mortgage can the provider apply for information to debt collectors? I have looked at the credit file and the score is Good, and 851+ I have been paying off a debt to collectors regularly for over 7yrs, and I have never missed a payment, this is not showing on the credit file, so can companies access this information?
In underwriting a loan or mortgage, the lender may contact another lender or collection agency that you owe money to. They would do this to inquire as to how the loan is being paid.
In most instances the lender would just rely on the credit file/history for this information.
If the account is not being shown on your credit file, and you do not disclose the account, the mortgage company or lender will probably not know of the account, so they would not contact that lender or collection agency.
Thanks for this Jon. I have completed all paperwork now and I’m keeping my fingers crossed. I will let you know how it goes. x
I am about to go for a joint tenancy for rented accommodation but have checked my credit file and have a low score of 523, this is because of a default with a catalogue company of just over £3,500 which I was in dispute with the company over payments. This debt is now on my credit file logged with a debt management company. My OH has excellent credit and I am very worried that this will effect a joint tenancy, I also only have my mobile phone account which is all up to date and have no other credit in my name. My SIL has offered to be a guarantor if needed but not sure the letting agents or landlord would agree to this. Neither myself or my OH are on the electoral role as living with family at the moment.
Forgot to mention that we have a previous landlady who is more than willing to give us a reference for a property we rented from her for 2 years and also our previous letting agents will do the same, would a new letting agent/landlord take this information into consideration??
Not all letting/estate agents use credit scores for all the properties they may let. Have you discussed this with the landlord or the agents in question?
If the landlord/agent do use credit scores as a basis for letting a property, it sounds as though you do have a backup plan, and that is getting a reference from your previous landlord.
Paying your rent or mortgage is a priority bill, and if you have paid your rent as agreed in the past, regardless of any other financial/credit issues, the chances are you will pay any future rent as agreed as well.
Your future landlord will take the reference as a good sign, and should use that more as a basis to let to you over any credit score.
If there were to be any issues, and I feel having a previous landlord’s reference will be more than enough, having a guarantor is an option, as is paying a larger deposit.
Again I feel having the landlord’s reference will be sufficient if there is an issue.
Let me know how you get on, I wish you the best.
Hi Mark could you tell me how I can find out if iam black list? I did credit check and it’s poor, is that mean iam black list?
There is no “black list” for people who may have weak or poor credit/credit scores.
If you checked your credit history, what was your credit score, or what looked or is poor on your credit?
There are ways to improve or raise your credit score depending on what is on your credit report, and what accounts you have.
My husband and i applied for a loan with santander who we have savings and mortgage with. The loan was for £12000 to be paid in 5 years. The purpose of the loan was to pay off an existing loan which was twice the interest rate and reduce the term. Our request was declined which we cant understand. We both work full time, have joint income of £65k, monthly income is greater than outgoing by £1000, we have savings accounts that are greater than the loan amount requested (which we are keeping to pay our mortgage off and for unforeseen things), i have a car loan which is not a great deal, we have 2 credit cards one which we kept for holidays as it had zero charges but owe nothing on it and a 123 credit card which we use just for shopping etc to get cashback which we clear every month. We have never missed payments for the mortgage or any loan we have ever had and never overdrawn. I am baffled. Any thoughts on this would be much appreciated. Thank you.
From what you have stated, on the surface it would seem you would have a very good credit rating/score, and should be approved for the loan. So initially, I am baffled myself.
Have you spoke to Santander as to why you were declined?
Have you reviewed your credit histories for any errors or omissions?
These are going to be starting points as to finding out why you were declined the loan.
There are many banks and lenders, including web sites, like money saving expert, that allow you to check eligibility for a loan, prior to making application. This gives you you a pretty good idea if you would be approved or not.
I would definately check with Santander as to why you were declined, and also review your credit histories.
Let me know what you find out and we can look more at this.
Thank you for you advice. I have checked with another lender on line to check eligibility and whilst I met everything on the list of criteria, it generated a return of unlikely to be successful. I just cant understand it. We still havent had anything through from santander with the outcome or appeals info. I will chase this. Do you think they will tell me the reason why it was declined or are they not obliged to do that.
Will keep you posted.
It never hurts to ask as to why you were declined. They may tell you why, they may not. While they may give a general reason, it may not be specific.
In checking your eligibility through another lender it came back, unlikely, that tends to make me think there is something on your credit history causing your credit score to be low.
Different lenders have different criteria for lending, you need to review your credit history and credit score.
Have you moved recently? Are you on the electoral role?
Review your credit history for any errors and let me know.
I had a property that was housing association I was taken to court and the property was repossessed in 2012 does this mean I have a ccj against my name and And does this will I not be able to rent off of a private landlord?
I have a few questions before I can answer your question fully.
Were you purchasing the property that was reposssessed? Did you have a mortgage?
Have you reviewed your credit history recently? And have you heard anything from the bank/lender/housing association?
Reviewing your credit history and speaking to who repossessed the house is a good starting point.
Depending on the nature of the repossession, how it was reported, if it was even reported on your credit history, will determine your credit rating and score.
Renting from a private landlord, or renting from anyone, could be an issue if they want a reference or to know your prior landlords/mortgage company. This would show the repossession.
Are you renting at present?
If the repossession were to be an issue, there are options, such as a larger deposit, or having someone as a guarantor.
Get back to me an we can review this in more detail.
Over the last 6 or so years I have manged to clear of all of my debt except my overdraft (I have had This for years) how, if I paid it of and cancelled it would my credit rating improve quickly?
Also when looking at my report, the fact I have never had a credit card has been shown as a negative, why is that? I have never borrowed more then £3,000 in my lifetime and I’m nearly 30, never had a store card or credit card only had 1 loan and my overdraft. I want to get a mortgage but my score is so poor can anyone explain why?
Improving one’s credit rating is not an overnight or quick fix procedure.
I am unsure why not having a credit card is reported as a negative on your credit history. It doesn’t work that way.
What is your credit score?
While getting a mortgage can be based on credit scores, there are other factors involved, such as income to debt ratios, deposit, etc. Have you discussed this with a mortgage lender/bank?
Just as a guess, you mention you cleared your debt over a 6 year period. It may be that debt was the issue, and over time now your credit score will rebound and get better.
Hi my mum took a catalogue out in my name and got behind with payments it went to a dept collection agency and a default was placed on my credit file,my mum has paid off the £300 dept,but how do I prove it was her and not me that got the default,she paid the dept off using her debit card and her email address would that be enough proof that it’s was her,I’m trying to get a morgage and this is stopping me,my mum has admitted it to me and will admit it to who ever she needs to,to help get the default removed
Unfortunately this is not a good sitution for both parties.
you can contact the catalogue company to see if they have a fraud depatment, but they may require a police action number in order to follow-up on it.
Did you report this as soon as it occurred?
There may be little you can do, besides witing a statement and having your mum wite one as well. Then presnting it to the credit repoting agencies.
I’m 21 years old and through immaturity got myself in alot of debt with my own house. I’m now back living with parents, but due to not paying bills I have:
£270 of debt to Gas/Electricity (ScottishPower) £300 of debt to TV provider (Virgin Media) 1460 County Court Judgement (For council tax) and I was overpaid £1000 from an old job that I’ve been sent a letter for. What should be the first steps I take in re-shaping my credit file? Ideally I’d like to be applying for a car on finance in the next year, and a mortgage within 4 or 5. I’d really appreciate any help you could give me.
The first step is to review a copy of your credit history to see what is reported and how it is reported.
I assume the accounts and overpayment you mention are still all outstanding?
Can you afford to set-up a repayment plan for these accounts?
Paying the accounts off is also one of the firs steps in seeking to clear-up your credit history.
Let me know if you can afford to set-up a repayment plan, and also review your credit history, and we can look further into this.
If you cannot afford to repay the accounts, then they could very well have a negative affect on your credit history and credit score. Which is secondary to getting the accounts paid and cleared.
I have a pcp car finance contract. This is shown on my credit file as an unsecured loan and stopping me getting credit due to this being a brand new car. I have had pcp contracts before and never had this issue spoke to car company who advised this is correct practise?
Help would be much appreciated.
I am unsure how to advise you?
If you feel the loan is being reported incorrectly on your credit history, and the lender feels it is being reported correctly, then you can contact the credit bureau(s) in question and use their process to report and correct this.
I am unsure how the loan is stopping you from getting credit?
Is this the only account you have?
Has this account lowered your credit score?
If the loan is secured, and reported as unsecured, then again, reviewing any documentation you have and reporting this to the credit breaus should clear matters up.
Thanks for reply I spoke with the company who advise this was all correct but my brother has the same contract and it is showing secured on his credit file.
I don’t have much more credit a couple store cards I can’t say if it lowered my score as didn’t pay much attention if honest. I was advised from my bank advisor that this was logged incorrectly.
What else could I do to sort advised would hand car back and they advised me I had to pay £6000!
I may need a bit more information in order to see what it is you are looking to accomplish.
If the car loan is reported incorrectly, even if the credit company states it is being reported correctly, you can challenge it through the credit bureaus directly.
Why would you give the car back? This could be treated as a voluntary repossession.
If you bought the car, I would assume you wanted the car, and/or needed a car. Any new purchase, especially as large as a vehicle, can have an impact on your credit score.
Why are you concerned about your credit score?
If you qualified for the car, applied for the loan, and were approved, in the end the larger loan may help your credit score. Your credit score dropping some is not such a bad thing, unless you are still actively seeking credit at the moment. Which if you are, why?
Let me know what it is in the end you want to accomplish, and we can look at this together, and see how the car fits into this.
Thanks for reply
Do ugly have a private email that I can contact you on instead of a forum?
That will be do you have a private email
Unfortunately I do not provide a private email to receive questions or comments at.
In part the reason for this is due to the volume of questions and emails I would receive.
You can use this forum to put general information in to get some advice, or you can also speak to your local CAB or Step Change if you are experiencing any financial issues.
I have a credit score of 840 and I have applied for a mortgage but a few months ago I applied for a catalogue and got refused will I still have a chance of a mortgage?
I cannot say with any certainty you will get approved for a mortgage as there are many factors involved, and I don’t have all the information to fully advise.
I can say that getting a mortgage has many things involved, and while credit score is one factor there are other facttors as well, such as the amount of the deposit, affordability, etc.
You can speak to a mortgage advisor as to if you quaify for a mortgage, and if so, how much of a loan you would be accepted for. Has the lender where you applied for a mortgage got back to you?
As to why you were denied a catalogue, I cannot say. Did you inquire as to why?
First of all – great read!
I am moving from a shared house wondering what best way forward is with utility bills, as they are all currently in my name?
Should I cancel and start fresh in my new place, or is it safe to transfer to someone else in the current house, as I don’t want my credit record to be affected should they default on payments?
Having utility bills in your name that someone else is responsible to pay, unless they pay you, and you pay the bills, is always a recipe for a problem.
If you no longer reside at a property, why leave or have the bills still in your name? You will need to set-up new accounts, or carry over your utility accounts to your new address.
Transferring the bills to someone else will not affect your credit, and give you peace of mind not worrying as to if they are paid or not.
Perfect – Thanls Jon.
Will transfer bills away.
Hi Colin… I have defaults on my report and the last one is due off in December.. it been satisfied.. but I notice the link address on my report have a debt collection name and told they will take anything up to 10 years off my report .. will this stop me getting a morgage till it falls off my report
If a collection account has been satisfied, meaning it has been paid, then it may not be an issue in obtainng credit, or in your question a mortgage. It will depend on when it was satisfied, and other factors related to being approved for a loan.
In the UK all accounts drop off a credit history after 6 years, if they don’t drop off after 6 years, you can contact the credit bureaus to have them removed.
Collection accounts that are in the public records section of a credit report in the USA, can stay on for 10 years.
Hello my name is Robert im from Iceland im now living in Czech Republic. Debt collection here in Czech send me later that I need to pay 35.00 euro or my bank account will be blocked. My tax return was 0 for 2016 currently im selling online and just starting to make some money if my bank account will be blocked i will lose my company. I try to contact them to offer some money monthly and haven’t got any responses. I was bankrupt in Iceland 2008 when the economy went down i own the state in Iceland this money. Will the Czech debt collector be able to do that i have not give them any information I have nothing on my name other than the company no rent or car or lone. Best wishes
Do you owe money in the Czech Republic or Iceland?
If the money you owe is from Iceland and a Czech Republic debt collection agency now owns the debt, they can collect it there in the Czech Republic.
Did you include the money you owed in your Icelandic bankruptcy?
In the UK, everyone is allowed a basic bank account, even someone who is bankrupt. You may wish to speak to someone there regarding the laws allowing someone to have a bank account. If you have no money in your bank account, someone freezing it or tking money from it, does them no good.