Credit Rating

[FoxCovert]

Does anyone know how you can get a credit rating restored after losing it inadvertently. A friend of mine bought a product on the basis of pay nothing for ten months and then forgot to make the first payment at the end of the period. Once she realised she paid the full amount off in one payment. She has now been rejected for 2 credit card applications. She has a previously good credit rating and has never been in debt with a good income.

 

[Nottingham Fox]

Does anyone know how you can get a credit rating restored after losing it inadvertently. A friend of mine bought a product on the basis of pay nothing for ten months and then forgot to make the first payment at the end of the period. Once she realised she paid the full amount off in one payment. She has now been rejected for 2 credit card applications. She has a previously good credit rating and has never been in debt with a good income.

A defaulted payment will stay on her file for 6 years.

As she missed the payment she can't get it reversed as legally the payment was late. Most lenders though (if this is the only piece of adverse information on her credit file) and depending on the amount should overlook this if the balance is now zero. That said the current climate dictates that anything other than a perfect credit file will lead to any application to being declined.

Are you sure this is the only problem? Free trials are available from creditexpert.co.uk and equifax.co.uk (remember to cancel though or the debit card will be charged after 30 days). This will show all credit and will highlight the problem(s). If anything is wrong then they will provide contact addresses for the lender in question so they can be contacted in the hope they will update the credit file to what it should be.

 

[FoxCovert]

Thanks NF, thats really useful. I'm pretty sure there is no other adverse history. She feels pretty aggrieved by the seller as she felt she was rather encouraged to take up the 10 month offer when in fact she could easily have paid outright on the day. Seems a bit harsh does 6 years. Just wonder if there is any recourse on the seller for mis-selling? Sounds like it's a hard lesson learned

 

[Jeff]

Are you sure this is the only problem? Free trials are available from creditexpert.co.uk and equifax.co.uk (remember to cancel though or the debit card will be charged after 30 days).

Or from https://www.noddle.co.uk/ where it's completely free. They make their money by trying to sell you financial products.

 

[Nottingham Fox]

Thanks NF, thats really useful. I'm pretty sure there is no other adverse history. She feels pretty aggrieved by the seller as she felt she was rather encouraged to take up the 10 month offer when in fact she could easily have paid outright on the day. Seems a bit harsh does 6 years. Just wonder if there is any recourse on the seller for mis-selling? Sounds like it's a hard lesson learned

I don't see how she was mis-sold? The sales person might have been deemed pushy, most are unfortunately. Your friend had the right to say no but didn't. 6 years is extremely harsh, I agree. Most lenders won't necessary take note of this for that length but if it's quite recent, they will look upon it as a possible new trend.

I took out my mortgage just over 3 years ago and rather embarrassingly I had some adverse credit. It wasn't a massive amount but from a lenders point of view it wasn't great. I was amazed that my mortgage was agreed. For just over 5 years now I've never been late on any payment, my bills are paid ontime by DD or well ahead of the time it needs to be paid. I recently applied to buy a new house with a £40k cash deposit and was knocked back on something that was over 5 years old on my file. I was even knocked back by the lender who gave me a mortgage with adverse information on my file and can see that for 38 payments I've never missed one. It's tough out there at the minute.

 

[FoxCovert]

Thanks again NF and Jeff. Useful info.

 

[Matt_B]

I think I have quite crap credit but I was recently accepted for a fixed rate (and at a good rate at that) credit card. I only used it for balance transfer but was amazed I got it.

 

[Durham Fox]

Just signed up or Noddle. Very good.

 

[Lako42]

Just signed up or Noddle. Very good.

The rating is a bit vague.

 

[Durham Fox]

Not very detailed no. Out of 10 would have been better.

 

[The Major]

Moneysaving expert has some good advice on this.
http://www.moneysavingexpert.com/cards/bad-credit-credit-cards#improve