A reader has asked how Full & Final settlements (F&Fs) would affect her credit rating which is currently looking good as her debts were all defaulted and have dropped off her credit record. A full and final settlement happens when the creditors agrees to accept an amount which is less that the total owed to settle a debt, and agrees that the debtor will not be pursued for the remainder. … [Read more...]
There is a lot talked about credit ratings on the Internet but it can be very confusing and sometimes even wrong! If you can't make the proper payments to your debts, your credit rating will suffer. But different debt options affect your credit score in different ways, so I've written these articles looking at the details of each situation.
This pages has all Debt Camel's articles about credit rating in date order - there are a lot of them! If you would like to see the most read articles, check out Debt Camel's page on Credit Score - problems, queries and answers which also tells you how to find out what is on your credit record.
I am sceptical about firms offering to improve your credit rating - too many of them are either scams or something you can easily do yourself. But Credit Improver is authorised by the FCA, any complaints about it can be considered by the Financial Ombudsman and it is offering a "guarantee" so I decided to take a look. How Credit Improver works When you sign up to Credit Improver you are buying a … [Read more...]
A couple of questions about British Gas defaults from Debt Camel readers in the last few weeks: I check my credit file monthly. I have just noticed an account that was never on there before from British Gas saying that I owe £179 from 2008. The only thing that is showing is a default issued Jan 2017. I have no recollection of this money. We didn't move from that address until 2010. What can I … [Read more...]
A reader asked: My Noddle report shows some settled debts but one is shown as satisfied. I am sure I paid them all off in full. Does it make a difference and should I ask for this to be changed? … [Read more...]
Paying your mortgage on time helps your credit score. Shouldn't paying your rent do the same? That is the idea behind Credit Ladder, where tenants renting from a private landlord can sign up to have their rent payments reported to Experian. There aren't any figures published yet on take up, but Credit Ladder's director, Asa Bentley said: The reaction to our service has been beyond our … [Read more...]
A reader asked: "I've seen advice to improve my credit rating after a Debt Management Plan by getting a "bad credit card" and repaying it in full every month. Would it be a good idea to get two of these cards? I don't want to borrow any money, just to get a better credit score." This is a good question! Let's start off by looking at why getting a bad credit card such as Vanquis is often … [Read more...]
Ms F asked: "I have been in debt management for five years after my marriage breakdown. After an inheritance, I want to pay off my DMP as it will carry on for years. I could pay in full but my house needs some urgent work and my car is on its last legs. I asked about my credit score if I offer a partial settlement and was told this would show as partially settled on credit score file. Will I … [Read more...]
In September 2016 Experian's Credit Matcher service and MoneySavingExpert's Credit Club became the latest ways to check your credit score in Britain. There are now a bewildering eleven alternatives to choose from: most only look at one Credit Reference Agency (CRA). There are three main CRAs - Experian, Equifax and Call Credit - and they do not all have the same information; one looks at … [Read more...]
A reader asked: In August 2011 a CCJ was registered against me by Lowell P1 for £211. I paid off the balance, but not within the month. I have bank statements to prove its been paid. On my credit report it shows the status as “active” even though I have paid it. I’ve contacted Lowell multiple times but they say as it’s an old case it’s no longer on their system and they can’t help me. I … [Read more...]
A reader asked: My credit rating is very low. I defaulted on three debts in the first half of 2011 after I was made redundant the previous year. Since 2013 I have been paying them off slowly. One was paid in full last year and another just repaid this month, but my score hasn't changed. One more is being paid £50 each month but that won't be gone until end next year. I have one credit card … [Read more...]