Credit Scoring

[VenalWinfrey]

Dear all

Was hoping that somebody might be able to help me out by giving me some advice concerning my credit report with Experian. I have obtained the basic free data online and now have the option to obtain the full copy for �5.95 which I will do.

Basically my credit seems to be fairly poor � when I applied for loans recently most of them provisionally rejected me. I cannot think of any reason for my credit to be poor (i.e. I have always settled bills on time etc.) I know that certain things however do not go in my favour, or at least I believe so, namely:

a) I have moved houses a lot (a friend advised me that companies like you to stay resident somewhere for at least three years)
b) I am not currently on the electoral register at my current residence (but this can be rectified immediately)
c) I do not own a house, nor a car
d) I am single

My question was as follows: I want to get a loan to consolidate my debts etc. I have been offered a fairly decent rate from a supermarket (9.7%APR) and am considering accepting. What I wanted to know is, if I obtain my Experian report in the next couple of days, will it show me exactly what thing/things are lowering my credit score? And if so, are any of these things rectifiable in the short term, enough for them to potentially improve my loan APR (i.e. reduce it)?

Hopefully this makes sense! And thanks in advance for any replies I may obtain.

Cheers

VW

[CheekyChops]

Yes it will show you the things that are lowering your credit score and no, there isn't anything you can do in the short term to improve things.

Get yourself on the electoral register asap as this can condsiderably lower your score. However I'm not sure how quickly it will be reflected on your file.

9.7% is not bad considering the current climate and the fact that it is for debt consolidation.

[Ethel]

9.7% in the current financial market for an unsecured loan for a tenant is very good indeed.

You already have debts - that will make it more difficult for you to get a loan - the new creditor will be at the back of the queue if you go bankrupt.

You should be able to see all the information you need on the free report you have. There is no need to pay the extra. However, �6 is not a lot.

Remember to cancel very quickly otherwise you will incur further charges from Experian.

[moomintroll1]

The fact that you are not on the electoral register will significantly impair your ability to obtain credit. Many lenders will decline an application immediately if they cannot locate sufficient electoral register trace (some, if not most, will want to check your previous addresses too).

You should get yourself on the register immediately. However, it may take a couple of months for the credit reference agencies' records to be updated, so there is probably no point repeatedly purchasing your credit score within a short space of time.

Are you using the Credit Expert service? If so, you do get a list of the positive and negative factors which have affected the score. It also allows you to project what your score might be if you made some changes. I'm not sure if electoral register is one of the changes, though.

Unfortunately, there is little you can do in the short term to improve your score. It usually takes time to build up information on your credit file which proves your credit worthiness.