My partner has a poor credit score due to falling behind on credit card payments when he was out of a job and the account had defaulted. We are currently trying to find a mortgage but because of this we cannot seem to get one. Would paying the remainder of the account in full help with his credit and possibly be accepted for a mortgage?
Starting on 1st September, we’re launching a brand new radio show “The Money Hour” in association with LBC. Co-hosted by Clive Bull and Sarah Willingham, it’ll be from 9 to 10pm on Monday nights. Experian’s resident money expert and Head of Consumer Affairs, James Jones, and experts from other organisations will join the presenters discussing issues such as mortgages and car loans, giving help and advice on credit matters and answering listeners’ questions. I spoke to James about the upcoming launch of the show, and here’s what he said.
What’s in the show? We’ll be discussing key issues such as qualifying for a mortgage, getting the best deals & avoiding credit refusal, and we’ll share our top tips for building a great credit rating!
What are the biggest myths surrounding credit ratings and credit scores? There are so many myths which are really frustrating for us and sometimes damaging to the public. For example, many people believe checking their own credit report will damage their credit rating. Of course this is totally false and if there’s any impact it’s likely to be positive as you may identity information or behaviour you can change to improve your credit rating in the future. Another example is ‘blacklisted addresses’, which simply don’t exist. But some people believe they do and make bad decisions about their finances as a result.
What should someone do if they get refused credit? We should all see credit refusal – and we all get turned down from time to time! – as an opportunity. Push the lender for an overall reason – and only they can tell you this as only they know! – and order your credit report from the credit reference agency the lender consulted and check through the information carefully.
The top three reasons why checking your credit report can only be a good thing?
1) For a start, checking your own report from time to time compliments the work the credit reference agencies do to try to make sure you’re the information is accurate and up to date. And if you do spot something that needs changing you can alert the agency which will then launch an investigation on your behalf.
2) By checking your report you may identify things you could do to improve your credit rating, for example by registering on the electoral roll.
3) Many victims of identity fraud discover the crime when they check their credit report, and in most cases the early you spot fraud the easier and quicker it is to sort out.
——————— The Money Hour – every Monday from 9-10pm on LBC. A podcast link will be available here on the Experian Experts blog each Tuesday following the show.
On my report my HSBC account is defaulted and this is incorrect – what should I do? It should be changed to ‘satisfied’. I believe this information is preventing me from opening a bank account anywhere.
Online registration asks for many personal details and debit card details before registration is confirmed by email. How is this secure? How do I know that a fraudster hasn’t set up a spoof Experian website to capture this personal data?
I am applying for a mortgage and would like to know when my credit score will be updated after I pay off my credit cards. Is it possible to get it updated as quickly as possible?
Suzanne, East Finchley
I have recently moved into a property with pre-payment meters. I wanted to change over to credit meters like my old flat. However, after a credit check they have informed me I cannot change over as I failed my credit check. I am really confused as I don’t owe any money, never have, and even took out my first credit card last year to help build my credit history up as before this I never had anything on credit. My credit card is paid in full every month.
Could you advise me on this as my gas company has referred me to this site?
Kind regards, Debbie, Kilmarnock