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how much a default affects your credit score

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The Banks and other major lenders have no obligation

to divulge their inhouse systems for judging credit worthiness

which are us in conjuction with the CRA records.

 

The ''Credit Score'' its' self is intended to give the data subject

a day to day indication of how an application my be seen by a

potential lender, having a good ++ ''score'' will not guarantee

acceptance.

 

The process will of course also take in information on the application

form.

This is not discrimination as the lender is assessing a risk and has

to consider the viability of an account.

No the banks/lenders are not obliged to divulge their commercial

processes.


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CRA's need to be regulated more heavily. There is contradictory information given within them, for example: -

 

I have 1 'Satisfied' Default on my account and a score of 528. I am classed as a 'high risk borrower' in the summary box despite the fact that my only 2 forms of credit in the last 8 months are a credit card and a car loan which have both been paid on time every month.

 

According to Experian the only element that has a 'negative' effect on my credit score is the fact that i have approx. £6k left to pay on my car loan. The positive effects section notes i pay on time every month, i am on the electoral role, i havent got any CCJ's or been declared bankcrupt and i havent applied for more than 2 credit accounts in the last 6 months.

 

I thought they were supposed to apply certain standards to all of their users however reading this post makes me think very differently considering there are some in a similar situation to me but with scores way higher.

 

They should all be sacked off in favour of a more manageable, accurate system.

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Many factors affect the ''score'' eg., the amount of available

credit used,a default especially if it has still along time to run

even if satisfied.

 

Sometimes even a lack of accounts is seen as not giving an adequte

history for a potential creditor to rely on.


Any Letters I Draft are N0T approved by CAG and no personal liability is accepted.

Please Consider making a donation to keep this site running!

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Bridge

 

According to Experian my 'available credit' is £200 which i guess directly relates to my Credit Card with CapitalOne. I also have a credit agreement for my car which according to Experian is the only negative factor on my credit file. I also have a bank account with Lloyds but that does not have any overdraft etc. on it.

 

I guess i just have to crack on and see how the score improves over time.

 

Shane

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Regarding damage done by a default. I noticed the Co-op Premier bank accounts listed a 'decline' for any default in the last six years.

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Bridge

 

According to Experian my 'available credit' is £200 which i guess directly relates to my Credit Card with CapitalOne. I also have a credit agreement for my car which according to Experian is the only negative factor on my credit file. I also have a bank account with Lloyds but that does not have any overdraft etc. on it.

 

I guess i just have to crack on and see how the score improves over time.

 

Shane

 

It is a slow process Shane, lenders are increasingly looking for

upto 6 years good creadit management as opposed to the 3 years

that used to be the norm.


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In my case it helps to ask the bank to remove the default if you have a good enough reason. In my case I requested the bank remove my late payment default because at the time it occured I was moving home and the estate agents lost my keys - and because it was on a Friday night nobody could do anything until the Monday, costing me a fortune in hotel, locksmith and extra time for the removals people - all of which meant my account was cleaned out virtually and my credit card repayment bounced...so when I found out on my credit report that the banks had levied a 'late payment' default I was quite angry and explained what happened - and well they took me at my word and removed the late payment default and I am 51 points better off than last month!

You can always ask.


BANKING

Halifax - £428.43 - successful claim

Halifax PPI - £380 - successful claim

NatWest - £2853 - Successful Claim

Barclaycard - £663 - Successful Claim

Barclaycard PPI - £360 - Successful Claim

 

RETAIL

Lastminute.com - £190 - Successful Claim

Benson For Beds - £49 - Successful Claim

Santander - £420 - Successful claim to have iMac repaired under Section 75 Consumer Credit Act (Retailer went bust)

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I've asked numerous times to have mine removed but with no success. I've therefore created a multiple page dosier on the mistakes / inaccurate information that forms my Default and i have asked the ICO to investigate. If this doesnt work i'll go to court.

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Would'nt it be better to go to the Financial Ombudsman?


BANKING

Halifax - £428.43 - successful claim

Halifax PPI - £380 - successful claim

NatWest - £2853 - Successful Claim

Barclaycard - £663 - Successful Claim

Barclaycard PPI - £360 - Successful Claim

 

RETAIL

Lastminute.com - £190 - Successful Claim

Benson For Beds - £49 - Successful Claim

Santander - £420 - Successful claim to have iMac repaired under Section 75 Consumer Credit Act (Retailer went bust)

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99Point

 

My reference to ICO was wrong. My complaint has gone to the Ombudsman responsible for communication services. I'm not sure why i referred to them as the ICO.

 

I have however issued a compliant to the ICO for breaches of the DPA by VF.

 

Thnaks

 

Shane

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Covering all the bases Shane!!!


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Brigadier...i figure at least one of them has got to agree with the issues ive raised against Vodafone ; )

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How far did you get with VF by complaining, final response letter?


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Nemo Mortalium Omnibus Horis Sapit: Animo et Fide:

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Hi Brigadier

 

I wrote to VF several times including various letters / emails back and forth from the Directors Office but to no avail. They failed to properly respond to any of my letters that i sent choosing only to address certain points that they may have deemed easier to address than others. I got fed up with their inability to provide a proper response (Guy Lawrensons team were equally inept) so i've taken the matter up with as you can see quite a few organisations.

 

When i sat down and took the time to re-look at this issue i was gobsmacked by the innacuracy of the data VF is processing. In the end my complaint to the ICO and the Ombudsman was supported by about 8 pages of examples of innacurate information.

 

I have had conversations with the ICO and the Ombudsman recently and they appear to be in general agreement with the points i have raised. Whether this initial stance turns into them asking VF to remove the Default remains to be seen.

 

I was encouraged by posts by BankFodder on another thread the other day that the Cancellation Charges applied by VF would be uneforceable.

 

Thanks

 

Shane

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I'll look forward to the results Shane.


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I can't find on experian where is shows previous credit "scores" - the little graph seems to only show the current month, or (last month) the previous two months. It doesn't actually work as a graph!

 

What I can say is I had three defaults drop off my file end of April. "Score" went from 565 to 595. Moved from "very poor" to "poor". I've still got a CCJ and 3 more defaults mind you.


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That sounds about right, the ''score'' is reviewed I

think if there any changes that are significant.

In Its self the ''score'' is nothing more than a day to

day picture of your ability to get credit even a good or

excellent ''score'' is no guarantee of acceptance all lenders

have unique inhouse rating systems.


Any Letters I Draft are N0T approved by CAG and no personal liability is accepted.

Please Consider making a donation to keep this site running!

Nemo Mortalium Omnibus Horis Sapit: Animo et Fide:

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yep my thinking exactly. I'm hoping once my remaining defaults drop off (last one is Jan 2013) then because of my otherwise exemplary financial management it will increase nicely, along with my chances of gaining credit.

 

To be honest though, in the last 5 years I've not had any credit whatsoever - not an overdraft, nothing except a £200 crap1 card I put £100 on and pay off in full every month (£200 limit) just to show regular reliable payments. I've not missed credit really tbh - I've saved for what I wanted and it's perhaps done me good in the long run. Frustrating now though as I want a loan for a new car and although I easily have the funds for the monthly payments, no one will accept me because of my actions 6-7 years ago. Bah.


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Your credit worthiness will increase but not by much. As brig said, lenders have their own ways of determining if you can have credit. CRA files are just a guideline.

Once a default/CCJ falls off your record, it doesnt improve overnight.

For most lenders now, they are looking at 3-4 years plus of clear and solid credit history. For mortgages and the like, 6 years +


Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

:D

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I have a damaged credit report from when my marriage broke down. Unfortunately on the back of my husband leaving me and the kids, I lost my job as we were in business and he set up another company and took the contracts with him. With no income I was unable to meet the mortgage/secured loan and he refused to pay. He had mulitple personal debts and wanted to force me into bankruptcy. I didnt give up, I got back on the job ladder,I fought off two reponssesions, paid off 12 months of arrears and have managed to maintain payments. What annoys me most is that I am paying a joint secured loan of £16k that my husband wanted for a motorcyle or the house would get repossesed b) my credit score is sabbotaged and c) I cannot remortgage because of the credit score and d) whilst Im paying these debts I am increasing the equity of which he is entitled to a share. 4.5 years on I wonder if I should have gone bankrupt!

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Hi all. My credit score is a poor 374. I have a satisfied ccj which will drop off in 6 months. I currently have a low credit limit credit card which i pay on time each month and a gaurentor loan which has been up to date for 2 years. Will the ccj leaving my report improve my score and does anyone no by how much roughly

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i have had a default on my credit file for nearly six years it is due to be removed i havnt acknoleged it or made a payment in that time and that it is statute barred.this was entered by a dca on my credit file.after updating my records with the original company they have got this account as settled six years ago i know i didnt owe anything to a dca who had been hounding me.is there anyway.that these dca,s can be brought to heel and can one seek compensation off these companies for distress caused and for having to look at higher interest credit when they think they can do just what they like.are they regulated from a legal standpoint.i dont remember these companies appearing on the likes of watchdog etc it is about time they were made to answer some questions.

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Hi all. My credit score is a poor 374. I have a satisfied ccj which will drop off in 6 months. I currently have a low credit limit credit card which i pay on time each month and a gaurentor loan which has been up to date for 2 years. Will the ccj leaving my report improve my score and does anyone no by how much roughly

The effect of the CCJ coming off the files is hard to judge as many factors

are taken in to cosideration when calculating a ''credit score'' the impact will

likely be minimal but it will give you a chance to ''build'' a credit reputation..

over the next 3-4 years.


Any Letters I Draft are N0T approved by CAG and no personal liability is accepted.

Please Consider making a donation to keep this site running!

Nemo Mortalium Omnibus Horis Sapit: Animo et Fide:

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How do you get defaults removed?

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How do you get defaults removed?

 

With great difficulty. You must have a very very VERY good reason for a creditor to inform the CRA to remove it.


Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

:D

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