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Mr-Lex

Adverse Credit History

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Anyone in the finance sector or has knowledge in the filed may able to help :question:

A family friend, had a good credit history but recently developed adverse credit (arrears). They missed about 5 months payment due to personal reasons. Matter then went to debt collectors and the payments were being payed to them (debt collector). All the arrears payments are now paid in full. Stupidly they did not realise it really affected their credit scoring/history!

How can they impove or remove that problem? They are having problems getting credit from "high street" places i.e. banks, etc....

p.s. the arrears are not related to household mortgages and they do not have a mortgage.

:)

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Actually, the more credit cards / and credit you get .... and re-pay , the more your credit integrity increases.

I'm not sure how else you could increase this ........ ? :blink:

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Step forward moi...... :D

A question that I often get asked - it's a tricky one this.

Basically, credit scoring is based on your historic performance. If you have a good performance, you have a good scoring - and vice versa. The catch is, if you have a bad history, you can't get credit to improve it!

There are numerous factors taken into acount by Experian and Equifax. Lenders also use different scoring techniques to one another. So you may find some will lend - others won't.

Don't forget, by applying for credit and being refused also adds whats called a "footprint" to your history and too many of these is also not a good thing. Everytime someone looks at your history, a footprint is applied.

The first thing I would suggest is to get your history from Experian and Equifax (few quid). Take a look at what it is that's causing this problem. Do they have a mortgage? Any credit cards? Gas/Electricity bills? Are all of these in order?

If they have Credit cards, I suggest keeping them and paying the minimum amount every month. Keep the payments regular and don't go over limit. That's an easy way to build up a good history.

Also, think about income versus available spend. By this, I mean if the person is on 20k, has outgoings (mortgage, bills, sky, broadband etc) of 15k, then living expenses on top plus the potential to spend say 10k on credit cards already, it is unlikely they will get much more.

Happy to advise on the credit history report once you get it if required Sanj. PM off line if required. :)

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Contact Experian and tell them that there has been recent desputes and I think they can remove them. Something like that anyway.

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Anyone in the finance sector or has knowledge in the filed may able to help :question:

A family friend, had a good credit history but recently developed adverse credit (arrears). The missed about 5 months payment due to personal reasons. Matter then went to debt collectors and the payments were being payed to them (debt collector). All the arrears payments are now paid in full. Stupidly they did not realise it really affected their credit scoring/history!

How can they impove or remove that problem? They are having problems getting credit from "high street" places i.e. banks, etc....

p.s. the arrears are not related to household mortgages and they do not have a mortgage.

:)

That's what I said to them. Seems like that is a long term solution! Any short term solutions???

Surely they paid the arrears off and the account is inactive, wouldn't that help? How long does it take to show that in a persons credit history/file?

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Experian and Equifax (credit ref agencies) will give you certain information and only hold some details on file. We use them at my Bank before allowing folks to have a credit card. However, you should bear this in mind (from Equifax):

There are some misconceptions about the information held on individuals. Personal information, such as details about current accounts is one such misconception - this information does not appear on your credit file. The following are also NOT part of your credit file.

Current Account details

Saving account details

Employment records

Student loan information

Pension details

Salary details

Property status

Credit rating/score

Council tax payments

Criminal records

Child support agency information

The information on your credit file will include electoral roll information from local authorities and details on your existing and previous credit agreements from UK lenders (called Insight information by Equifax). In addition, where applicable, County Court Judgments and bankruptcy details will be shown.

Electoral roll information is used by lenders to verify the name and address you have provided on your credit application and to help distinguish you from other members of your family with the same surname.

Information such as County Court Judgments, Scottish Decrees, Northern Ireland Enforcements and Bankruptcies are used to provide an indication of an applicant's previous financial history.

Payment history information shows a record of your financial agreements (called Insight information by Equifax), such as credit card and loan repayments, and is supplied by our customers (banks, building societies, retailers, etc). Your credit report will show details of your existing and previous credit agreements. It is used to help support responsible lending decisions.

The different types of information will be held on your credit file as detailed below:

Searches - Equifax keeps this data on your credit file for 1 year

County Court Judgments/Court Decrees - 6 Years after Judgment

Home Repossession Register - 6 Years after repossession notification

Gone Away Information - 6 Years after first notification

Notice Of Dispute - Stays until you ask for it to be taken off, or the dispute is resolved

Notice Of Disassociation - Until such time as there is contradictory evidence or you request to have it taken off.

Individual Voluntary Arrangement - 6 Years

Bankruptcy - 6 Years

Administration Orders - 6 Years

Payment Performance - 6 Years after the lender has closed the account.

The letter may or may not be true. It is an awfully long time since you had the debt, and as they haven't chased you for some time, then seems dodgy. None the less, read through the above, and have a good think.

Feel free to ask any further questions - if I can help, I will.

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Based on present and past 3 years as far as im aware.

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Based on present and past 3 years as far as im aware.

nope.

Payment Performance - 6 Years after the lender has closed the account.

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Step forward moi......  :D

A question that I often get asked - it's a tricky one this.

Basically, credit scoring is based on your historic performance.  If you have a good performance, you have a good scoring - and vice versa.  The catch is, if you have a bad history, you can't get credit to improve it!

There are numerous factors taken into acount by Experian and Equifax.  Lenders also use different scoring techniques to one another.  So you may find some will lend - others won't.

Don't forget, by applying for credit and being refused also adds whats called a "footprint" to your history and too many of these is also not a good thing.  Everytime someone looks at your history, a footprint is applied.

The first thing I would suggest is to get your history from Experian and Equifax (few quid).  Take a look at what it is that's causing this problem.  Do they have a mortgage?  Any credit cards?  Gas/Electricity bills?  Are all of these in order?

If they have Credit cards, I suggest keeping them and paying the minimum amount every month.  Keep the payments regular and don't go over limit.  That's an easy way to build up a good history.

Also, think about income versus available spend.  By this, I mean if the person is on 20k, has outgoings (mortgage, bills, sky, broadband etc) of 15k, then living expenses on top plus the potential to spend say 10k on credit cards already, it is unlikely they will get much more.

Happy to advise on the credit history report once you get it if required Sanj.  PM off line if required.  :)

They don't have mortgages! But the usual credit cards, mobile phone, telephone etc, but not household bills i.e. gas and electrics!

Will PM you with the details of the report. Cheers mate!

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Contact Experian and tell them that there has been recent desputes and I think they can remove them. Something like that anyway.

Is this advisable? As far as I am aware there weren't major disputes! Can someone brag about it?

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Contact Experian and tell them that there has been recent desputes and I think they can remove them. Something like that anyway.

Is this advisable? As far as I am aware there weren't major disputes! Can someone brag about it?

Get the report first BEFORE you do anything of this nature. Look through it carefully. If there are discrepencies, then you can take it up with Experian/Equifax to rectify the errors, but you will need proof and they will cross-reference your claim with the lender/debt agency so you need to get your facts 110% straight....

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Well Zee, there is more to you Capital One boys than meets the eye! :P The technical detail is spot on. I just thought you were an IT boy. :winky:

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Well Zee, there is more to you Capital One boys than meets the eye!  :P The technical detail is spot on. I just thought you were an IT boy.  :winky:

Don't knock us Gus - we'll take you 'oldies' on any day! :lol:

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If the debt has been settled in full and this isn't reflected on the Experian report, you can contact the debt collecters and ask them to write to confirm this. Experian can then update their records to show this.

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If the debt has been settled in full and this isn't reflected on the Experian report, you can contact the debt collecters and ask them to write to confirm this. Experian can then update their records to show this.

Claire,

Can you explian more on this? :blush:

As far as I know it does appear on the Experian report :crybaby:

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