If you feel that your credit report is wrong, the usual first step is to ask the lender to put this right. But when the lender is in administration, the administrators may not respond to requests from you to correct your credit files. And if the lender has been liquidated, there is no-one for you to contact. Here the Credit Reference Agencies (CRAs) should help if you ask them to. Incorrect … [Read more...]
Credit Ratings
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.
And most importantly, when will your credit rating improve and what can you do to help this.
See The top ways to check your credit records for details.
Improving your credit score after an IVA
An IVA wrecks your credit record for at least six years. It can be longer than six years if your IVA doesn't complete within the 6 years, perhaps because you have had payment breaks. After your IVA finishes, in theory you don't need to do anything and all the problems will disappear from your record after the six year point... But it is important to check your IVA firm has closed down your … [Read more...]
“A mystery CCJ on my credit record – I know nothing about it”
A reader, Ms J asked about a CCJ that suddenly appeared on her credit report. "I check my credit record a couple of times a year and there is now a CCJ on there. It looks like it was added 2 months ago at an address I left ages ago, possibly 8 years. I don't even know if this is real or some sort of error. It's only a few hundred but I don't want to pay it if I don't have to and I don't know … [Read more...]
How can my creditors find me?
If you are very worried about your debts, you may be wondering how easy it would be to disappear and leave them all behind. perhaps you have already gone, leaving Britain because of Brexit. Will your old records be linked with new ones on your credit records? Can your creditors find you if move, go abroad, change your name? Some of these sorts of ideas aren't very sensible - and there may be … [Read more...]
Can I get a mortgage with recent defaults?
A reader, Mr D, asked: My partner and I have a combined income of £56,000, We have a deposit of £28,000 (inheritance) and are looking to become first time buyers at a price of £230,000. We have defaulted debts that are being paid off, and previous history of payday loans from over 2 years ago from a time when our financial situation was much more difficult. The defaults are about 18 months … [Read more...]
Is your name in a fraud database?
There are three large UK databases aimed at alerting lenders to possible fraudulent applications for borrowing: National Hunter, Cifas and Sira. If your name is on one of these connected with fraud you may find it difficult or impossible to take out credit and your bank account may be closed. But sometimes the information on the databases may be wrong and you need to get it corrected. In … [Read more...]
How much will my credit score change if … ?
How much will my credit rating go up or down? That is a very common question. But it's often tricky to answer! This article has some guideline numbers from Experian that may help. These are only indications - your credit score may not go up or down by this much. They assume nothing else has changed on your record. They also apply to single issues. If you have two defaults already, getting … [Read more...]
I’m in a DMP – can I get a mortgage?
A reader asked about applying for a mortgage when she is in a Debt Management Plan (DMP): "I have been in a DMP for 8 years and still have 6 to go as I still owe £16,000. With hindsight, I should have gone bankrupt! My parents will give us a 20% deposit in 2021, but they don't know about my debts so I can't use their money to end the DMP. Will I be able to get a mortgage?" This case highlights … [Read more...]
How to improve your credit rating after a DRO
A Debt Relief Order (DRO) lasts for one year and then your debts in it are wiped out. But it shows on your credit record for six years. This article looks at what should happen to your credit record during the DRO year and after it has finished. Some of your creditors may have go tt this wrong, you need to ask them to correct any problems. You can start to improve your credit rating after … [Read more...]
“Must I pay a debt that’s not on my credit report?”
A reader asked if she has to pay a debt that she can't see on her credit record. Many people think that checking their credit record is a good way to get a complete list of their debts. And they look forward to a defaulted debt disappearing after 6 years because then they don't owe the money anymore. These are myths - and although they sometimes are right, they often … [Read more...]