Debt problems are often linked with credit rating problems. And the UK credit information system is complicated.
Contents
Find out the facts
The important first step is to find out what is actually on your credit record. Don’t just assume you have a good record or a bad record – check it!
You actually have three separate credit records not one. Each of the three main Credit Reference Agencies (CRAs): Experian, Equifax and TransUnion each have a different credit file for you.
Many lenders only report to one CRA. So none of the CRAs are “better”, they just have different information. If you only look at one, you may be missing something important on one of the others.
You can now check your all credit records for free. Never ever pay for this! See The best free ways to check your credit score.
If someone tells you to use ClearScore or says Credit Karma is best, remember that those are reports that only cover one of the three CRAs. You need to check all three because they don’t all have the same information.
What sort of information is on your credit record
There are three types of information on your credit record:
- information about you
This included names, aliases, previous addresses, whether you are on the electoral roll etc.
It is essential this is accurate. It is also good if it doesn’t change much! Try to always use the same job title and telephone number with all lenders.
Being on the electoral roll is viewed by lenders as a sign of stability. - CCJs, bankruptcy, IVAs, DROs
These are notified by the court or the Insolvency Practioner. - loans (including mortgages, car finance, payday loans), credit cards and catalogues, overdraft and some utility bills
These are notified by the lender so you see information for each debt – this includes what the balance is, your recent payments and various status codes.
Something wrong on your credit record?
If you think there is a mistake on your credit record, you need to get it corrected. This can take time, so tackle any problems when you hear of them, don’t wait until you are about to apply for car finance or a mortgage.
For problems with a particular debt, it’s best to talk to the creditor directly and not the CRA – they just report the information they are given:
- if the balance is wrong, or the account is closed, or you think the default date is wrong, ask the creditor to correct it;
- often you can’t get a default removed. Can I get a Default deleted? looks at the situations when this can be done and your other options (such as changing the date on the default) if it can’t.
- if the lender has gone bust and can no longer be contacted, read Correct credit records by “suppressing” them if the lender has disappeared.
If there are debts showing that you don’t recognise:
- read Is there a mystery debt your credit record?:
- if you have more than one unknown debt, you may have an identity theft problem.
When something is showing which is correct but you feel it is unfair, read Should you add a Notice of Correction to your record? Lenders will then see your Notice but it may not make a difference to your chance of getting credit.
If your credit report says you have a Cifas marker on your file, this is an indication of fraud. See Is my name in a fraud database? for how to find out more about this and challenge it if it wrong.
Talk to the CRA about problems with your personal information – eg if they have an address showing that you have never lived at. If you are showing as being linked to an ex but no longer have any joint accounts, ask for disassociation.
Lenders don’t use the credit scores the CRAs calculate!
Credit reference agencies will tell you their own ‘credit score’ for you and may offer tips on how to improve your credit score.
Lenders don’t use these scores! Most lenders will “check your credit record” when you apply for a mortgage, loan, credit card or other sorts of credit. They will get detailed information from one or more of the CRAs, but then they have their own way of deciding what information on your record is important.
Some examples:
- if you repay a debt with a default or a CCJ your credit score doesn’t increase at all but many lenders will be more likely to lend to you as they can see you have sorted out problems;
- having a payday loan that you have repaid on time doesn’t harm your credit score, but most mortgage lenders will reject an application if you have had payday loans recently.
So the CRAs’ “credit score”s often aren’t much help to you – but a bad score is a sign that you are likely to have trouble with credit applications.
Improving your credit record
- How much will my credit score change if…? looks at some guidelines from Experian.
- Should you get a credit builder card? the answer is only if you can repay it in full each month. Otherwise it can be a slippery slope to more debt and a worse credit rating.
- Will paying off debt improve my credit rating?
Don’t be tempted by firms advertising to repair your credit record – they are either scams that don’t work or you can do it yourself for nothing.
Don’t take out expensive credit just to improve your credit score. Guarantor loans are an expensive way into a lot of trouble, not a good way to improve your credit record.
If you win an affordability complaint about expensive credit, you may get a refund or a balance reduced. You may also get missed payments or defaults deleted from your credit record. And sometimes the whole debt will be deleted for payday loans.
Most bad information drops off after 6 years
Most bad debt problems disappear from your credit record after six years:
- Closed accounts which haven’t been defaulted drop off 6 years after the account was closed.
- Defaulted accounts drop off 6 years after the first default date. But the debt still exists and you could be taken to court for a CCJ for it.
- Insolvency markers drop off after 6 years (but may sometimes be delayed for IVAs, see below.)
- CCJs disappear after 6 years, paid or not. But if a CCJ is paid within 30 days, it drops off immediately.
Once a debt has dropped off, it will never re-appear.
So if you stop new problems from appearing on your credit record, as time passes your old problems will disappear.
Understanding defaults
A defaulted debt will disappear from your credit record after six years, regardless of whether it has been settled, partially settled, you are still making payments to it, or not paying anything to it at all.
This makes the default date a vital piece of information! Unfortunately there is a lot of bad information around about them.
Here is what you need to know:
- What should the default date for a debt be? This also explains how to get the date corrected if it is wrong.
- Can I get rid of a default? Not normally, but if you feel a default is unfair, then check out this list of situations where it may be possible to have it deleted.
- Will paying a defaulted account help my credit score?
- Misleading threats to add a default – Some debts such as a builder’s invoice will never appear on your credit record (unless you get a CCJ) and it is misleading of a creditor or debt collector to suggest that they can.
Old debts
If you are currently making payments to an old debt, read Should I keep paying an old debt?
When you have debts that aren’t showing on your credit file, read Do I have to pay a debt which isn’t on my credit record?
If all has gone quiet about a debt that you haven’t been paying for years, read No calls or letters about a debt for years? and also When does a debt become statute barred?
Debt solutions and how they affect your credit record
Debt management plans and payment arrangements:
- How does a DMP affect my credit rating? read this one if you are thinking of a DMP or are in the middle of one
- Would a payment arrangement help me?
Settlement offers:
Insolvency:
- All three sorts of personal insolvency have the same effect on your credit record, see Bankruptcy, IVA, DRO and credit ratings for details.
- You may think an IVA would be better than bankruptcy but it isn’t. In fact the IVA marker can stay on your credit records for longer than bankruptcy.
- It is a myth that going bankrupt destroys your credit forever.
The “clean up” procedures are much the same after all the different sorts of insolvency, but the timing varies (you can start much earlier with the clean up after bankruptcy or a DRO than with an IVA) so there is a separate article for each:
- Repair your credit record after bankruptcy
- Repair your credit record after a DRO
- Repair your credit record after an IVA.
Mortgages
A good credit record is important for getting a good mortgage offer – but it isn’t the only thing that matters!
You can spend a lot of time and effort trying to increase your credit score when that may not may any difference to your chance of getting a mortgage…
And your outstanding debts are also important for a mortgage application, even if they are no longer showing on your credit file! For more details, look at:
- How fast can I improve my credit score to get a mortgage?
- Can I get a mortgage with debts?
- Payday loans make it hard to get a mortgage.
“It’s all so complicated”
I agree! I think the whole credit record system should be simplified.
You should be able to get a single report across all three CRAs easily. And with no advertising for loans you may not want. It should be much simpler and faster to get errors corrected.
But until that happens, we all have to manage with the system as it is: get the facts, work out what is wrong, put in a complaint.
Jessica says
Hi there,
Will a default drop off 6 years after it was registered if it was taken over by a collections agency? My defaults are 6 years old next month, but I’ve just been given the impression they will drop off 6 years after the collections agency took them over, by a mortgage advisor. I would really appreciate your input on this!
Thanks so much.
Sara (Debt Camel) says
was the debt sold to a debt collector? if it was, you will see two entries on your credit record, one with the original lender and one for the debt collector that now owns the debt?
Georgina says
Hi
If I offer a full and final settlement for a credit card debt for an account defaulted and closed 4 years ago, will that account stay on my file for another 6 years from the settlement date? Or will the whole record of the account disappear 6 years from the original default date.? I want to pay off the debt but don’t want it to extend the time it appears on my credit report?
Thanks
Sara (Debt Camel) says
See this article which looks at your exact question: https://debtcamel.co.uk/ff-credit-record/
Dan says
Hi
I have a defaulted oustanding loan with Halifax that I’m still paying off, however has now dropped off my credit file. Later this month I will come into a bit of money to be able to pay off approx. half of the final balance. I’ve been asked if I want a settlement offer and have a couple of questions:
(i) What is a realistic offer (balance outstanding £5.6k)?
(ii) If I do decide to pay a settlement offer, when I apply for a mortgage (with another bank, not Halifax) later this year will that be visible on any other register/systems and therefore is there any downside to me paying a settlement amount?
I understand my credit file won’t be impacted as it’s already fallen off, however the lady at Halifax was talking about it still being visible if I applied for a mortgage. I get this would be true if I applied with Halifax but if I went with e.g. Natwest is there any downside to me accepting a settlement figure and paying it off without harming a mortgage application later this year?
Sara (Debt Camel) says
How much are you paying a month? Have you told the Halifax you are coming into some money?
Dan says
Hi Sara
Sorry for the late reply – I’m only paying £100 per month – no I haven’t had any conversation with them about any change to my payments yet.
Thanks
Dan
Sara (Debt Camel) says
As you are paying £100 a month offering half would seem to be reasonable. If you were paying £200 a month then you would probably have to offer more as they would get £2400 in a year just from the monthly payments.
“will that be visible on any other register/systems “
on on Halifax’s internal systems
“the lady at Halifax was talking about it still being visible if I applied for a mortgage”
Onl;y on their systems so don’t apply for a mortgage to Halifax! (or lloyds, part of the same group)
Sharon says
Hi Sara, You advised me about two provident satsuma loans which were inaccurately reported. Experian wrote to provident but no response so loans have been supressed – thanks for your advice. I am looking at Transunion and Equifax now. I read on another thread that lenders cannot see who you have credit with, just what you owe etc. Is that correct or am I mistaken! I have a settled account with Lowell. It was Simply Be but there is no default or missed payments but I’m worried that lenders will see that I had an account sent to debt collection. Lowell will not remove the account when I asked as I said there was no adverse information so what’s the difference but they said I have to wait for it to fall off. Is the fact that it is a Lowell account having an adverse impact!
Sara (Debt Camel) says
Why was the account sent Lowells if there was no adverse infotainment on it?
Sharon says
Hi, I asked Lowell and they said that there was no default and no missed payments. I recall that I asked Simply to accept reduced payments and I think that was when the account was sent to Lowell. I never missed a payment with Lowell under the plan. Even Experian said it was a strange account. It just looks like any other account now settled and in good standing but it’s with Lowell and I want to know if this will impact – if lenders can see that it is a Lowell account. Any help would be great. I did read that an account shouldnt be sent to collection if there was no default. I’m at a loss..
Sara (Debt Camel) says
has the account been settled?
A lender can sell any account, there doesn’t have to be a default.
Sharon says
Yes it is now settled – July 2022. It doesn’t seem to be impacting on my score and Lowell won’t remove even though there is no adverse info. Do I just leave it now, or try again to have it removed? I’m only concerned if lenders will see it is a Lowell account and take a view on that?
Sara (Debt Camel) says
ok a lender cannot see who the account is with from your credit score. A lender can only see this if they ask for bank statements or Open Banking access to your account – mortgage lenders are the fussiest and even they only normally go back 6 months. So going forward it doesn’t sound as though this will be a problem for you.
Sharon says
Hi Sarah,
So after Experian agreeing to suppress the provident loans, provident have contacted Experian to say that the information they reported is accurate so Experian are going to put the accounts back on my credit file. I understand the accounts will stay put until Dec 2027. The accounts are having a big impact due to the missed payments. When suppression happened my score went into the 700s from 500s. I assume that the loans were not deemed unaffordable – I think the email informing me must have gone to spam and then was deleted. I didn’t appeal, I didn’t know I could or should. The loans weren’t affordable hence the second loan after the first and then missed payments. Is there anything at all I can do now. Information I’ve read seems to suggest that I can’t do anything to challenge this now??
Sara (Debt Camel) says
when were the missed payments? and how many ?
Chris says
Hi. I have an old loan that was marked as closed, although outstanding, with MyJar for £500. This has since been sold to a debt collecting agency. The agency have the amount at less than £500 and I am not sure if that is because the loan had a redress issued against it (no correspondence from My Jar about a redress). They have also marked it as an open credit card with a default date 9 moths later than the default My Jar applied.
My first question is, if there was a redress due to affordability then should this debt still appear on my credit record? Secondly, if it should still be on file then is it correct that the debt is shown as an open credit card? I know I need to contact the agency to amend the default date to reflect the date My Jar had listed but I also want them to rectify my credit record accordingly should the answer to either of my other two questions apply.
Sara (Debt Camel) says
My first question is, if there was a redress due to affordability then should this debt still appear on my credit record?
yes, but there should not be a default.
if it should still be on file then is it correct that the debt is shown as an open credit card?
This is a loan. It should never be marked as a credit card.
Chris says
Thanks Sara, it is Perch Capital who have placed it as a credit card on my file… although I am now finding out is is ACI who are acting on behalf of them in a debt collection capacity.
If they refuse to amend then can I take this higher?
Sara (Debt Camel) says
Make sure you are making a formal complaint to them. Then you can take it to the Ombudsman if the reject it.
Sajid says
Hi Sara,
my question is if a account was defaulted within the last 2/3 years and is now in my closed account section with every credit reference agency, is this something that creditors can see too?
Sara (Debt Camel) says
Yes. It will drop off your records 6 years after the default date. Until then your creditors can see it.
Sajid says
Thanks Sara, does this also include any debts which creditors have also written off and closed the account, will theses also stay on my credit file for 6 years too?
Sara (Debt Camel) says
yes it will – 6 years from the default date or 6 years from the date the account was marked as settled if there was no default.
Sharon says
Hi Sara,
Do you know which of the CRAs Wonga reported to? The is no sign of the loan on my Experian or Equifax file but it is present on Transunion. I think (?) that the account was removed from Experian/Equifax but for some reason it has been left on Transunion. Do I contact Transunion and ask them to remove?
Sara (Debt Camel) says
yes. See https://debtcamel.co.uk/correct-credit-records-lender-administration/ for what to do.
Steve says
Hi- any advice greatly appreciated. Defaulted a current account overdraft with Halifax 12 April 2015 and satisfied the default. Still paying off remaining balance and never missed a payment through Wescot who manage the account. A Company called Link Financial Outsourcing purchased the debt Nov 22. They have now placed the remaining debt on my credit file and a new default stating in 2018! Am I correct thinking this shouldn’t be allowed to show in my credit file any longer?
Sara (Debt Camel) says
Yes. Go back to Link and say the debt was defaulted back in 2015, so the default has dropped off your file. Ask them to remove the record or you will be sending your complaint to the Financial Ombudsman.
Steve says
Thank you, I’ve emailed a complaint through resolver asking them to do this asap. Massive inconvenience. Thank you so much for getting back to me.
MD says
Good evening, I have been looking online all evening and can’t find a definite answer.
My card was lost/stolen last month. I cancelled it. As I was waiting for a new card to arrive I had a very.co.uk payment due. I contacted them by email (they were closed at the time/weekend) asking for bank details for a bacs payment. 3 days later I got a text to say I’d had a late payment charge. I rang them straight away. Gave them my support ticket number and they said they’d reverse the charge. My card came that day so I paid online a few hours later. Fast forward I had a late payment charge added. I called today and they removed it (its gone i checked). My account was late and paid within 5 days of due date.
My question is, will this show on my credit file? I have never missed a payment befire. I am applying for a mortgage THIS MONTH.
The timing could not be worse.
Thank you for your help in advance.
Sara (Debt Camel) says
Possibly. It is a pity you did not talk to Very about this as it’s much more important than the late charge… you need to ask Very now and ask them to remove the late payment marker. Tell your mortgage broker about this (and if you weren’t planning on using a broker, you should.)
Alejandro says
Hello, I hope you are well! I have a query about eligibility checkers do you know if banks use a live version of your credit report when completing these or could it be from an old report? I had 1 default on my credit file which fell off as it was over 6 years old. I was eligible with some of the mainstream lenders, but when I done an eligibility check with Halifax it said there were no offers available for me at present after a soft search. But then when I did it with another bank I was able to get one. For clarity, the bank i defaulted with 7 years ago wasn’t Halifax it was Santander. So just wondering whether it was known if maybe they use old credit files or if it should be a live check on that date
Sara (Debt Camel) says
It would be your current credit report. But what other debts do you have at the moment? And do you have any other debts with Halifax, Lloyds or Bank of Scotland?
Alejandro says
Thanks for the reply! I have no other debts no, not even. Not even a late payment in the last 7 years. The only thing I have thought is that I done the eligibility checker with Halifax and I have a credit card already with them and around the time i defaulted with Santander my credit limit was reduced by Halifax so wondering if they have took the decision on the basis they know i defaulted 7 years ago because they reduced the limit potentially?
Sara (Debt Camel) says
Were you trying to get a credit card or a loan? if a loan. how large?
Adele Gale says
Hi – After checking my Trans Union credit report I noticed that some of the debts were duplicates where debt I owed for JD Williams, La Redoute, Marisota and Simply Be were sold to Cabot Credit Management Group but because the balances are showing £1 less for each of these accounts than on the Cabot account and the Cabot account number is listed as different from the ones from JD Williams etc Trans Union will not remove them from Credit Report so it looks like I owe double the amount of money than I actually do and I have double the amount of Defaults showing. Is there anything I can do to correct this please? I would be grateful for any help. Thank you.
Sara (Debt Camel) says
Are the debts wit( the original lenders showing as settled in some way?
Amanda says
Hi,
After checking my credit report recently it’s come to my attention that TFS loans have not been reporting my payments since last year. I have made 8 payments on time and they aren’t showing on my credit file. I have contacted them back in January and they have advised I need to raise this with my credit file company. Surely it’s down to TFS, as they report this to the credit agencies or am I wrong. Tfs keep fobing me and they still can’t give me an answer to why my payments are reaching the credit file , yet my balance updates . Anyone had any similar experiences.
Sara (Debt Camel) says
TFS are in administration. That makes it hard to get them to do anything. When will your loan be repaid?
Caolan says
Hi there,
I’m hoping you can help.
I was in a really bad position with a huge number of pay day loans a few years ago.
Luckily I have now paid these off but I’m trying to tidy my credit report to the best of my ability.
There is a number of pay day loan companies there that’s no longer in business but they shouldn’t have given me a loan in the first place.
Is there someone I can contact to dispute this? I’m not looking for a refund, I want them removed from my credit file.
Thanks in advance for the advice.
Sara (Debt Camel) says
Were all the debts repaid?
Jimmy says
Hi Sara,
Are there any companies or people you can send credit file to and get advice on best steps to take to improve it? Like to get a step by step for each individual on best way to sort it?
Thanks
Sara (Debt Camel) says
Not really. Why is your credit record bad? is it a problem of missed payments, payment arrangements, defaults etc? Or of having a very high credit utilisation?
Jimmy says
Thanks for the quick reply, it would be mostly defaults and payment arrangements with the debt collecting companies, mostly all around 2019 I had a gambling problem and took out loans and credit cards. I’ve had some removed from my credit file and amigo is showing as in arrears I haven’t made a payment to them from start of 2019 and have a claim in with them now in the scheme. My only open account is a phone and bill with o2.
Thanks
Sara (Debt Camel) says
Well if you win the Amigo claim, the arrears markers will be removed.
Have the debts with defaults and payment arrangements now been repaid?
Jimmy says
So I have most of them paid off either fully or partially settled and 2 Cabot accounts I have been paying off monthly for the last year but still £1000 and £2000 on them roughly and then the amigo accounts which I haven’t paid since 2019 but still have my balance.
Sara (Debt Camel) says
ok so there are no maic steps that will increase your credit score apart from winning affordability complaints.
Nothing you do know will make a huge difference but as the defaults get older they harm your score less. And at the point where the debts are cleared you can look to use LOQBOX to save money each month – that is treated as repaying a loan so it helps your credit score. At the end of the year you can remove all the money you have saved so it hasnt cost you anything (except for a bit of lost interest).
I don’t see any point in paying for the apps that claim to improve your credit score. Your score will improve anyway with time. The monthly subscriptions are better used to clear the debts.
Clearing the debts doesn’t itself improve your credit score, but it is vital to be approved for more credit at a good rate.
Jimmy says
Ok, thanks a lot for your replies. Much appreciated and helps me with my plan moving forward. As for amigo, is there any idea when decisions would be made after the scheme falling through? Also do you think it would make much difference if I settled fully or partially on the 2 remaining balances with debt collectors?
I will definitely be doing LOQBOX in the future as I did see a post you talked about it and am waiting until my other debts are sorted first.
Thanks again
Sara (Debt Camel) says
The Amigo Scheme hasn’t fallen through, it has just changed into Fallback mode. In theory this should not change the timetable for making decisions.
Settling fully or partially does not make a difference to your score. Partial settlement is a flag that a creditor can choose to take account of when deciding whether to lend. Many creditors will just be pleased that debt is settled and not care how. Its possible some may prefer it to have been settled fully.
Michael says
Hi Sara,
I’ve gone over my credit limit several times in recent months. I know that missed payments remain on my credit for for 6 years, but do over limits remain for 6 years as well?
Thanks
Sara (Debt Camel) says
Missed payments remain in your credit record for 6 years after the account is closed. But they aren’t counted in the credit scoring after 6 years. I think overlimits are the same
Michael says
That’s Sara, in a few months time I’ll be in a position where I’m not running the risk of going over my credit limits thanks to snowballing. Just hoping when I clear my debts the over limits (18 times in the last 4 months) don’t hit me too hard for future credit applications such as a mortgage
Sara (Debt Camel) says
To be blunt, if you are snowballing for it to have a chance of working you have to stop using the cards. Completely. Have you?
Michael says
Sorry for the late reply, no I haven’t fully stopped using them unfortunately. I’m not in the position to be able to yet so one just been trying my best to get further away from the limit each time
Sara (Debt Camel) says
I think you should talk to StepChange about a debt management plan. You have no chance of a mortgage when your limits are nearly maxed out and you cannot stop using the cards. If you carry on like this in a couple of years you are likely to have paid a lot of interest and made no progress at all…
Michael says
Thanks Sara, you’re right – I think I’ll do that. Really appreciate your advice
O says
Hi Sara,
I’m hoping this is the right section for this.
Some time ago I used all the help from this website to get myself completely debt free from all the payday loans I had.
All of those loans have now been settled and are closed. However Amigo loans is continuing to report on my Equifax credit report. At the time when I disputed the loan they agreed to remove all adverse information and also agreed to let me pay a settlement figure leaving £350 unpaid but they said the loan would be closed and all was settled. Its been completely removed from Transunion and Experian. But they are continuing to report the loan on Equifax. It still shows a balance of £350 and still looks like its an active loan as it hasn’t been marked as closed. It was back in 2020 the loan was closed with them. I have contacted Amigo already regarding this and haven’t managed to get anywhere.
How do I approach this?
Sara (Debt Camel) says
At the time when I disputed the loan they agreed to remove all adverse information and also agreed to let me pay a settlement figure leaving £350 unpaid but they said the loan would be closed and all was settled.
Do you have this in writing?
O says
This was their response:
“The removal of any adverse information from your credit file in respect of the loan agreement
…
Balance less redress: £208.97”
Balance still showing on my credit report: £368
Sara (Debt Camel) says
What you pasted in did not say the loan would be closed, it said there would be a balance remaining?
O says
Check my file is saying the last update was reported on the 22nd October 2020 since then just NR statuses have been reported each month and its still showing a balance of £368 with a monthly frequency. I’d rather have everything satisfied if I misunderstood the settlement they offered can I still contact them and pay this off? Whats the best way to sort this out?
Sara (Debt Camel) says
NR means No Report. It’s a neutral marker, it doesn’t harm your credit score.
You pasted in a lot. But I couldn’t see anything there which says they are writing off the rest of the balance?
The balance itself is wrong – it should be lower – but if you haven’t paid anything then NR is correct.
Did you accept the settlement they offered?
O says
Yes I accepted their final offer as I believed they were offering me to settle the loan. Do you think I should just pay the remaining balance my finances are no longer an issue for me so I could easily pay the remaining amount. I am planning on buying a house soon and I would rather the loan closed on my credit report I don’t want it effecting my chances of getting a mortgage
Sara (Debt Camel) says
So there is a balance owed on the loan, but it is the balance showing on your credit record – correct?
If that is right, you need to contact Amigo and say you want to pay the balance, tell them what their 3mail said it had been reduced to and get them to agree that if you pay that now your credit account will be updated to show that the loan has been settled with no negative marks.
J donn says
Looking for a bit of advice here.
I have an account from JD Williams showing as a negative on my credit report for the second time in 3 years.
Either the company, or the credit reference agency, are attaching my details to an account which is not mines. I have never had a JD Williams account. I know what the issue is – my dad with the same name but a DOB 30 years later had an account in arrears with them years ago.
The first time I raised it with equifax it was removed with no issue but I did not receive an explanation or apology from JD Williams.
Speaking to their online chat about the issue and was asked to submit a fraud report. I have done this now they are asking for a police ref number – obviously don’t have this as it’s there issue not a fraud issue.
My question is – are a company allowed to just attribute debt to your credit file when it is clearly not you, I can understand a mistake the first time but to have it happen a second time I am furious. Surely there must be some regulation stopping them taking a name and address and linking you to an account which isn’t yours!
This is now causing massive issue as my mortgage is due for renewal in the next 6/8 weeks, and this is now a negative on my report.
Could I challenge them on this practice and seek compensation as a resolution? Would FOS get involved in a matter like this on my behalf?
Sara (Debt Camel) says
I suggest you send JD Williams a complaint and say this is the second time they have made this error. Ask them for confirmation in writing that this will not happen again and ask for compensation eg £100. Also say that I’d this delays you getting. New mortgage in the next couple of months you will be skiing for additional compensation for the costs involved.
You can send this to the Financial Ombudsman if JD Williams reject you complaint or do not reply within 8 weeks.
Your remortgage – do you just want a new fix from your current lender?
J Donn says
Thanks for this Sarah, will certainly be looking for more of an explanation and will request this in writing along with assurance it won’t happen again as you suggested.
I was hoping to do some exploring over the next month or 2 hopeful to find a better deal as my fixed is coming to an end. With issues like this it could be an issue though and probably restrict any offers I do get.
I have a notice of correction on my account for now until this is resolved but know it doesn’t look good!
Sara (Debt Camel) says
Who is your current mortgage lender? I assume you do t hve mortgage arrears?
Sharon says
I had 2 loans with Satsuma in 2018. I didn’t make repayments on either for about four months and then arranged to pay them at £7 until they were cancelled in 2021. I made an unaffordable lending claim but it was rejected and I didnt appeal. I have asked provident to put a default on the accounts in 2018. Otherwise the loans remain until 2027. No response. I applied to FSO and they have just responded that they can’t help because of the scheme arrangement and to go back to provident. But provident don’t answer.. please can you offer advice? I’m not complaint me about unaffordable lending so thought FSO could still deal??
Sara (Debt Camel) says
so these loans still show on your credit record under the name of Provident?
Matt says
Hi,
I have 2 late payment markers, dating back to 2020, these are due to be removed after my complaint was upheld.
Given they are just over 3 years old, am i likely to see any positive impact to my credit score? I am not sure if you know the answer to this.
Thanks
Matt
Sara (Debt Camel) says
Probably but how much depends on what else is bad on your credit record. If there is a lot, you may not notice the small improvement. If the rest is great, then you should see a bigger change.
Kate says
Hi
I have 2 debts which were with jd williams on credit file but PRA group took them over last month. I have 4 debts on credit file now 2 jd williams and 2 PRA amounts slightly different as well. Does both creditor and debt collection agency stay on credit file.
Kind regards
Kate
Sara (Debt Camel) says
Yes they do, but only the debt collector debt is counted in credit scoring, so although it makes your report look worse, it hasn’t actually made a difference.
Are these debts included in your IVA?
Catrin says
Hi Sarah,
I have been following your page for a while and it has given me so much hope and motivation to get on top of my credit card debt. Thank you for all your help.
My mortgage payment was missed yesterday – no issues with affordability, it was an oversight on our part in terms of payments in to the joint account where the mortgage is taken out of. This did happen once before in January.
I had no communication from the bank about the missed payment yesterday , but I contacted them today to make the missed payment. They advised they have made a report about it which will show on my credit file.
I plan to ask for this to be reversed (I understand I might not be successful but I want to try never the less). How is best for me to go about this please?
Thank you
Sara (Debt Camel) says
Ask them straight away. Today.
This is made harder because it happened in January. What can you do to stop it happening again?
Rose says
Could you confirm about potential to affect partner’s credit rating post bankruptcy?
Debts are all in husband’s name, and couple have separate bank accounts and no joint assets, but they have a joint tenancy agreement. Does the tenancy agreement count as a financial link, and if so will bankruptcy affect wife’s credit report?
Thanks
Sara (Debt Camel) says
A joint tenancy is not a financial link for a credit report.
If the wife looks at her credit records at the moment, from what you have said there should not be a link showing – this is the way to be sure.
Jo says
I had a CCJ- £300, default date 07-01-2017, satisfied on 19-06-2020,
I was expecting it to disappear from my credit report as it has been more than 6 years- but it is still showing in my TransUnion credit score?
When i try to raise a dispute- i am not able to select any option which is relevant to my situation above. So i beleive they do that themselves, but what could be the reasons my is still showing? Does it take the satisfied date instead of the juggement date?
Sara (Debt Camel) says
What is the date of the CCJ? That is not the same (often) as the default date for the debt. Your credit record should show the CCJ separately from the debt.
L Taylor says
Hello. I need some advice…
I stupidly took out a large car finance when I was in relationship (domestic and financially abusive), which when I left I couldn’t afford to pay singularly and survive. So we agreed he would keep the car, but finance was still in my name as he was unable to get credit etc. This year he missed two payments on it, and obviously that had been noted on my credit report as missed/late payments.
As of yesterday he agreed to settle the outstanding on the car and pay it off early!
I’m wondering would I have any luck writing to the finance company and getting this somehow expunged from my file?
I had previously spoken with them to explain about missed payment and my domestic/abusive situation and they marked me as a “vulnerable customer”, but not entirely sure what that means…
And advice on appealing this sort of thing would be appreciated!
Sara (Debt Camel) says
I think I would try the simple “ask for your credit record to be cleared” first. email them and point out:
– you have previously told them about the abuse and he made you take the car finance
– the payments were coming from him, not you [if that was the case?]
– the finance has been cleared.
End by saying that the Consumer Duty says firms have to act to deliver good outcomes for a retail customer and it seems unfair for the actions of your ex to affect your credit record in this situation.
L Taylor says
Perfect – thanks for the advice Sara! I’ll give that a go.
Sara (Debt Camel) says
Let me know what happens!
Peter says
Hello, looking for some advice if possible. I had a lot of debt previously and had to enter a debt management programme at the time (Jan 2018) one credit card marked missed payments on my credit file July, August and September of that year, then again from December 2018 every month until my debt management plan was completed in October 2021. The credit card company sold this debt on (think to a company called ACI) I believe June 2018.
So I was wondering can this credit card company still mark missed payments on my credit file despite no longer owning the debt? Should a default have instead been marked from a certain point ie 3 missed payments?
Any answers will be greatly appreciated. Thank you
Sara (Debt Camel) says
Is there also a record for this debt on your credit record from ACI? Have you checked reports from all three credit reference agencies – see https://debtcamel.co.uk/best-way-to-check-credit-score/ for how to do this.
If this record can be changed to have a default then it will be more harmful to your credit score than the current missed payments. But the default will frop off 6 years after the default date, but the missed payments will stay on 6 years from the date of settlement.
Peter says
Hi Sara,
thank you for your response it is much appreciated. From what I can see there are only marks from the credit card company on my files and nothing from ACI. I have checked Transunion and Equifax but waiting to access Experian.
The transunion report has the above reporting with the few months of no information marked but missed payments the rest of the time. The Equifax report has a few months of arrangement to pay noted but missed payments the rest.
So I guess trying to get a default marked would be better in the short term, although credit score would take a hit, as it would allow this to drop off sooner than marked missed payments dropping off later
Sara (Debt Camel) says
It sounds as though ACI was collecting the debt on behalf of the original lender the , they didn’t buy it. In which case it was correct for A I not to report it but for the lender to continue to do so.
It’s up to you if you think it would be better to try to get a default added. It’s a bit marginal.
Peter says
Thank you for your time much appreciated
Matt says
Hi
I’m having trouble with Vanquis bank. They upheld my complaint about a credit being given irresponsibly. They agreed I must make an arrangement to pay off the outstanding debt, which I have been doing for a couple of months. Now they seemed to have backtracked and have been adding interest and late payment fees as I have no been making the minimum payment. I have sent numerous emails complaining but I’ve hit a brick wall!
I have taken this to the ombudsman now!
I’m worried now as my credit file has been impacted with a missed payment and soon I guess it’ll be a default. I’m not giving in and making a full minimum payment as I’m not in the wrong!!
Well I hope I’m not in the wrong! Any advice would be appreciated
Sara (Debt Camel) says
Ware Vanquis refunding all your interest? or just above a certain credit limit?
Matt says
They refunded all the interest!
I’m worried as it will take at least 6 months to get a decision from the ombudsman in which time I could get a default. Should I claim for compensation too?
Sara (Debt Camel) says
Well then I think you are in the right – you have made an arrangement to pay off the balance and they should not be making that harder by adding interest that you cannot afford and they should not be harming your credit record. yes i think you should tell the ombudsman you would like not just the interest and fees removed again from the balance but compensation for this.
Matt says
Many thanks!
Thomas says
Missed payment advice – recently Premium Credit (car insurance) have recorded a missed payment on my credit files. The first direct debit on the 4th of the month failed and they re tried the direct debit for a second time a few days later and it all went through with no problems. They have recorded this as a missed payment even though it went through a few days later. Is there anything i can do about this? I have written to their department which deals with credit reporting and they have said that there is nothing they will do and wont remove it. It seems extremelly unfair as it went through straight away on the second direct debit attempt a few days later. Someone told me that a missed payment has to be 30 days late but i cant find any info online saying that?
Any input or advice is greatly appreciated
Thanks
Sara (Debt Camel) says
They are withing their rights to record one after just a few days. I agree it is unfair.
Unless there was some reason that was not your fault why the first DD did not go through, you probably can’t do anything about this.
Julia says
I have a high income (£75k per year) but high unsecured debts (£50k) across credit cards, loans and an overdraft. My credit score is poor as I’m using now almost all my credit. I have 0% cards that are maxed out, use my OD each month, and have 4 loans – two at ok % interest (w/ my bank) and two @ high % (zopa). If I could with access 0% cards or lower loan interest rates I’d be able to pay back debts quicker. As it is, im using credit to cover outgoings and as im now maxed out can foresee trouble brewing. I live alone, rent and want to know how I improve my score which is poor whilst not being able to lower credit utilization as this would enable access to cheaper loans / 0%. Without this, I’m worried I’ll miss payments and put long lasting damage onto report
Sara (Debt Camel) says
When do the current 0% deals end?
The overdraft – are you just using it for a few days at the end of the month? Or all or almost all of the month?
Do you have a car on finance?
Julia says
Hi the cards with 0% – one needs mid Jan, the other 3 end btw Aug ‘24 to Aug 2025. I don’t drive and have no car finance. Overdraft – now using 3 out of 4 weeks . Help :) !
Sara (Debt Camel) says
So you have left this much too late to get consolidation loans at an OK rate. Perhaps those expensive Zopa loans were for consolidation… that didnt work well did it?
You don’t have any options that will protect your credit record. No one is going to lend you more money. If you borrow at very high rates of interest, that is just making your future position worse …
I think you need to look at a debt management plan with StepChange. This is like a flexible consolidation loan at 0% interest. If things go well, you can increase the payments, if things go badly you can reduce them.
See https://debtcamel.co.uk/debt-options/guide-to-dmps/ for more about DMPs, in particular the section on how you can speed up DMPs.
Yes a DMP harms your credit record – but a loss less than insolvency such as an IVA or bankruptcy. But you can look at speeding it up, see https://debtcamel.co.uk/7-ways-to-speed-up-a-dmp-so-it-finishes-sooner/. And credit records repair over time. Once your debts are gone, you can start to save for a house deposit say, but the time you have saved that, your credit score will be improving.
Julia says
Thanks for the good advice. I’ve managed to find a way to manage the next 6 months through selling items no longer need to release cash and increase £ to cards . hopefully by then I may be able to access 0% CC’s and move some of debt onto there to lower payments out. Thanks again for advice.
Tim says
Hi Sara,
I hope you are well.
If someone withdraws from a credit agreement within the first 14 days, should that account show on a credit report? If the account is already shown on credit reports within the first 7 days, and the individual withdraws on day 10, should this entry then be removed?
Thanks
Sara (Debt Camel) says
I think this is debateable. If you care about ti, ask the lender to remove it.
Stefan says
Hi Everyone,
Really great resource you have here Sara!
I have multiple loans and cards which defaulted between March and October 2018, so in theory these should drop off my file even though they are still wrapped up in a Stepchange DMP? Or do these things tend to stick around?
Thats the impression I get from the above but reading the comments it seems to be an inexact science.
Sara (Debt Camel) says
which defaulted between March and October 2018, so in theory these should drop off my file even though they are still wrapped up in a Stepchange DMP?
If there is a default date on the credit record, it will drop off 6 years after that date. Paid in full, settled partially, still being paid, whatever.
The inexact part is what the default date is.
Sara (Debt Camel) says
Just because a debt drop off, you can’t stop paying it, see https://debtcamel.co.uk/debt-not-on-my-credit-file/
Have these debts been sold to debt collectors? It’s possible some of them can’t produce the right paperwork, see https://debtcamel.co.uk/ask-cca-agreement-for-debt/ in which case you could just stop paying…
Sean Collier says
Hello Sara,
I had a small short term loan debt on my credit file, that has multiple missed payments against it over the last 2 years. I have been paying it via Payplan but noticed that all the missed payments have been removed from my credit report and my report says the short term loan has been removed. I know for a fact I haven’t paid it in full. The company is called The Money Platform.
Is this normal? Should I continue to pay?
Thanks so much for any help.
Sara (Debt Camel) says
what credit report are you looking at?
Sean Collier says
Hi Sara,
It was on clearscore.
Sara (Debt Camel) says
Clearscore reports on Equifax data
I suggest you have a look at a TransUnion report such as Credit Karma to see if the Money Platform debt is reported there.
Was this you first loan from MP? have you had other high cost borrowing? If you have, look at making affordability complaints, see https://debtcamel.co.uk/tag/refunds/ which has articles with templates you can use about different types of debt. Winning one of those could get a balance reduces, a cash refund and often get your credit record repaired.
Sean Collier says
Thanks Sara.
I’ve checked Credit Karma and the loan is not on there either, its not showing in the closed accounts too. Is it possible the debts been sold? Its a relativity small amount so seems odd (£140).
Thank you for that link, i dont think i’ve had multiple loans with MP but I have sent an affordability complaint to Loans2Go off the back of that!
Sara (Debt Camel) says
it is possible it has been sold, but that would not explain why the record has been deleted.
I am afraid you will have to ask MP…
Melissa says
Hi
My husband has two missed payments January and February 2018 showing on his credit report. I’d assumed they would drop off but they’re still showing and affecting his credit score.
Do the credit reports just take a while to update?
We’re hoping to get a mortgage on the coming months so wanted them off ideally.
Sara (Debt Camel) says
Is that debt still open? Or when was it settled?
You don’t have any other missed payments , payment arrangements or defaults?
Melissa says
No he was on a debt management plan until last year which was fully cleared. They are just showing as defaulted for January and February 2018 only – Cabot finance
Sara (Debt Camel) says
Do you mean there is a default date showing on the credit record? or that he missed payments to that debt? What has happened to the other debts in the DMP?
Melissa says
It is showing as missed payments.
All the rest from his DMP have dropped off, no missed payments since March 2018.
Sara (Debt Camel) says
You may think “missed payments” are the same as a default – on a credit record they are not. Debts drop off 6 years after the default date on the credit record . If there is no default date, the debt will drop off 6 years after the account was settled.
But a couple of missed payments 6 years ago should not affect a mortgage application.
I assume the DMP has finished and ll the debts in it are settled?
Melissa says
Yes everything fully settled in the DMP.
Sara (Debt Camel) says
Then 6 months after his last DMP payment, my guess is you two wont have a problem with a mortgage application. Go through a good broker, don’t apply direct to a lender. And avoid applying to any lender who he owed money to in the DMP.
Nigel says
I have a buy to rent flat on morgatge.
Od limit 2000 remaining left 146, may need to spend £40 before I get paid getting charged 1.58 per a day intrest.
Credit card 534.31 use to pay full just chnage this now to minimum
Paid salary on 20th April
Salary after tax £1256
Outgoing
pay 550 ground rent etc ( first time as I only got it October last year)
Pay 100 -300 depending if rent goes.
20 medcine
100 food
100 car
50 emergency
Credit card 534 (unless I pay minimum)
I don’t want to mess up my credit rating with payment plan or anything.
Just to let you know in past I’ve had ccj etc and never want to go there again,
I tried loan to clear it all but got declined.
I’ve put everything on hold till my debt clears, for example eating out.
Buying book or video game etc.
The only time I will eat out is if I have pre planned event already booked like they’re show
Matt says
Hi
I’m about to clear a balance on my Very account. Would it be wise to close the account or keep it active without using it. Not sure if there’s any benefit to improve my credit score?
Sara (Debt Camel) says
Do you have at least one credit card? How much of the credit card limit are you using?
Matt says
I’ve got 3 credit cards with limits between £600-£1200. All using about 75% of my available credit.
Sara (Debt Camel) says
Then keeping the very account but not using it will help slightly by improving your overall credit utilisation.
But the only thing that will make a significant difference is getting those numbers under 30% on each card. Can you stop using the cards? totally?
Matt says
Yeah I’ve stopped using them and gradually reducing the balances!
Thanks for the advice on that!
Dominic says
Hi
Are there rules on when Credit Card companies should report your position to CRAs. I feel a bit shafted by this:
April 25th Statement balance: 0.00
April 26th Spent 950.00
May 2nd Paid/Cleared 950.00
May 25th Statement balance: 0.00
However they (Halifax) seem to have reported as of April 30th to the CRA’s. Therefore a balance of 950.00 and a utilisation of 95% (limit is 1k)
I assumed spending and repaying within a single statement window would not only remove interest but also spare me from reporting any utilisation from CRA’s. Am I wrong or should Halifax be reporting my statement balance ie on the 25th of the month rather than the 30th of the month which just seems completely random in the context of my cycle?
Sara (Debt Camel) says
This is normal. You should try not to use more than 30% of your credit limit at any point in the month.
But this problem self corrects. You are not penalised for old high utilisations as soon as they drop down to low levels. So next month don’t spend more than 300.
And also don’t repay early – leave the amount o be repaid automatically direct debit in full.
Dominic says
Understood. Many thanks
Dominic says
Hi again.
Can I clarify how long missed payments remain visible to lenders, where no default is involved.
For example I can see on Stat Reports that 2 missed payments from 2016/2017 are still displayed. Possibly because the accounts did not close until some time later – 2021.
Does this mean that I’m stuck with these missed payments until 2027? (2021+6) Hopefully it shouldn’t actually matter too much on an otherwise clean report, but would appreciate clarification on if these missed payments *are* shown to lenders or do/should they go away 6 years after the miss?
Thanks
Sara (Debt Camel) says
Yes these records are retained for 6 years after the account is closed. This is why defaults are frequently better for you than missed payments as they drop off sooner.
Kaye says
Hi Sara,
I have a default which is six years old on 9th July 2024 and due to drop off my credit file. Phew!! I am looking to re mortgage. If I call the mortgage company on 12th July will the default still show or will it just automatically drop off on the 9th July?
Sara (Debt Camel) says
Is this debt cleared?
Matt says
Hi
I’ve just paid off 6 credit cards with a consolidation loan. I want to keep one of these cards active to use and pay off in full each month. Plus I want to increase my credit score!
My question which card shall I keep. The one I’ve had the longest or the one with the highest credit limit?
Many thanks
Sara (Debt Camel) says
what are the limits? the age or each card? and the interest rate on the card?
List them for each of the 6 cards
I hope the consolidation loan was very cheap!
Matt says
Tesco 25% 2017 £500
Zopa 30% 2023 £600
Zable 52 % 2022. £800
Cap 1 26% 2023. £1000
Aqua 37% 2024. £1200
Onmo 29% 2024 £900
All have been paid off with a loan from admiral at 25% APR
Sara (Debt Camel) says
do you feel that a £500 credit limit will be fine going forward – not really as a safety net but just as a way to improve your credit score?
Matt says
Yes as I intend just to use it for petrol and pay it off each month with a direct debit
I’m thinking it’s best to keep the Tesco card and close all the others?
Many thanks
Sara (Debt Camel) says
closing any accounts has a temporary impact on your credit score, but it will recover.
I don’t like people keeping a lot of cards open “just in case” – there is a lot to be said for a simple life and fewer accounts means less possibility of things like fraud.
If you wanted to keep another car then Cap One looks the next best… but if you are confident you don’t, then with a large and expensive consolidation loan, your best options are to close the cards and work on reducing your expenses sp you can save up an emergency fund and then over pay the loan.
Matt says
Hi
Does a money transfer on a credit card have a less negative impact than withdrawing the cash?
Many thanks
Sara (Debt Camel) says
My guess is the same, but it’s only a guess
Laura says
Hello
I got an IVA back in 2020
However on my credit check one of the bank accounts that the IVA paid of is still staying open and is saying it is being defaulted every month
Would I need to contact barclays to close the account? I am not sure on what to do as I have tried to appeal this several times but I dont get anything back
Thanks
Sara (Debt Camel) says
see https://debtcamel.co.uk/repair-credit-record-iva/ for what to do.
Heather Brown says
Hi Sara,
I had an default with Halifax which was then sold to Cabot Financials which fell off 2 years ago. I was in a DMP and then left as i had come into some money and made Cabot a settlement offer. They however wanted the full balance of £856 that i disputed as i calculated the money i had paid over the past 10 years in the DMP made the actual amount in my eyes £250. I made them an offer for that amount and they refused saying they wanted the full amount.
I then decided i was not going to pay anything after reading some of the articles as the default had already fallen off and technically i was no longer liable. I asked if they had the original credit agreement which they did not, so stopped all correspondence with them. At that time they were ringing me 2-3 times a day so complained to them about harassment.
Today i have received a letter from Cabot financials saying they have now passed my debt to Mortimer Clarke Solicitors for them to start legal action such a CCJ and that i need to pay the full amount immediately. This is because i have been in touch or set up a payment plan.
How is this possible? And do i need to pay it as i do not want a CCJ as i have cleared most of my debts and need to remortgage next year.
I have not contacted the solicitors yet, but want to be sure where i stand before i do.
Thank you.
Sara (Debt Camel) says
What sort of debt was this originally?
Did Cabot tell you it was unenforceable because they could not produce the CCA agreement?
Heather says
Hi Sara,
The debt was originally a Halifax Credit Card. Cabot have not been able to produce a CCA but said they will try and come up with something… i explained they had to produce the original which it seems they can’t. When we had correspondence a few months ago they said their legal team said the debt was enforceable as the account was not statue barred as i made payments via DMP up until March 2023. So therefore they can apply to court for a CCJ unless i now pay the outstanding amount in full!
Sara (Debt Camel) says
The fact you have been paying it means it can’t be statute barred. But that has nothing to do with whether the debt is unenforceable because they can’t produce the CCA.
But they do not have to produce the original – they can reconstitute it.
Have you asked them to produce the CCA using the National Debtline template letter linked to here: https://debtcamel.co.uk/ask-cca-agreement-for-debt/?
Heather says
Hi Sara, no i haven’t, i will do this and see what they say as previously they said they could not produce it.
I have received another letter yesterday saying they will be starting CCJ proceedings….this is very upsetting as i am remortgaging in March next year and cannot afford to have this on my credit score. These scare tactics are what makes my blood boil!
Sara (Debt Camel) says
Until the point they send you a Letter Before Claim/Action, this is just threats. See https://debtcamel.co.uk/letter-before-claim-ccj/ for more about this and what one of these letters looks like.
Make a formal request for that CCA.
Georgia says
Hello,
If a company is just reporting missed payment/arrangement to pay. Can I request they default me so it disappears off my credit file sooner?
Sara (Debt Camel) says
are you making payments? how long has this been going on for?