Credit scores/agencies

[sherrardk]

We had to declare ourselves bankrupt over three years ago and would now like to clean up our credit record. I know that we have to apply for a discharge certificate (and we could have done this two years ago). However, I don't know what we have to do next? What do we do with this certificate or does it come up on the credit score thingies that we have been discharged because a certificate has been issued? Hope this makes some sense, thanks for any answers.

[Buenchico]

Step 1:
Obtain your discharge certificate

Step 2:
Wait a short while (perhaps a few weeks) to give the credit reference agencies time to update their systems

Step 3:
Apply for a copy of your credit report. (You're legally entitled to it). Theoretically you need to pay a small fee (usually £2) but all of the agencies seem to offer a free trial anyway. (Just make sure that you remember to cancel the agreement before the trial period is up).

Step 4:
Read the report thoroughly. It should come with information about how to correct any
errors.

Step 5:
Make any necessary corrections.

Step 6:
Check again later, to ensure that the report really is fully up to date.

The main credit reference agencies are Experian, CallCredit and Equifax. (Their websites can tell you about getting hold of your credit report). Those three agencies are looking at credit ratings. However there's also (the rather secretive) National Hunter, which can prevent people from getting credit if their application is viewed as potentially fraudulent (even when it's not):
http://www.guardian.c...-hunter-credit-agency

Chris

[sherrardk]

Thanks Chris - don't worry though, don't want any actual credit but it would be nice to be able to open bank accounts for the two youngest, to have an ordinary bank account (that's not with the co-op - the only one who would give us an account - who's nearest branch is 30 miles away).

[Buenchico]

Thanks for your reply. If you're looking for another bank anyway, see page 6/7 here, paying particular attention to the last column:
http://www.moneymadec...dfs/bank_accounts.pdf
You'll see that Barclays might offer you a Cash Card Account. (I've got one of those, and I don't recall any questions about bankruptcy on the application form).

Oh well, if you've not got millions in the bank, I'll have to wait until I win the lottery jackpot before I can ask you and the kids to run away with me :-(

[sherrardk]

Thank you, x.

[TonyV]

Sherrardk - every bank is able to offer you a basic bank account - they have to by law

[sherrardk]

Hi TonyV - in reality, what they say they do and what they actually do are two different things. I have got a bank account with the co-op and I have been advanced from an Electron card to a debit card (although they seem to do the same thing). thank you for your answer though.

[TonyV]

Sherrardk - realise that - was just saying what the law is

[Buenchico]

TonyV:
Please take a look at my link above. All banks (under a voluntary agreement, rather than by law) offer basic bank accounts, but they're free to refuse such accounts to certain people. All of the High Street banks will refuse any type of account to anyone who they know to have been convicted of fraud. All but the Co-operative and Barclays decline to offer banking facilities to undischarged bankrupts.

Sherrardk:
Barclays used to only provide a 'cash card' with their basic accounts. (It could only be used in cash machines, not elsewhere). But they now offer a Visa debit card. (I know because I went into my local branch of Barclays and pointed out that. as an 'original' basic account holder, I'd only got a cash card but they were now advertising the availability of a debit card. It just took a few clicks of the cashier's mouse to get my debit card ordered).

Chris

[sherrardk]

Sorry, wasn't having a go. When we tried to get a bank account some banks wouldn't even speak to us (we were very open about our circumstances). When I tried to open accounts for my youngest children at HSBC they even lied about the reason why I couldn't (I have always had the child benefit paid into my eldest sons account and they said I was using it irregularly, I wasn't - just began taking the benefit out on a regular basis - nothing has been said since). It is very difficult to get yourself out of the sh!t once you find yourself in it.

[TonyV]

Buenchico - not going to bash heads with you. I just thought every bank had to offer a basic bank account, providing in principle you met there "money launderying" requirements

[sherrardk]

Hi both - when we were trying to get an account we could only get one with the Co-op or by invitation with the Post Office (needed one as we were on benefits at the time and they don't like to issue cheques/bankers drafts things). We didn't want a fancy one or any credit facilities (obviously). We have a personal account with the Co-op and my husband now has a business account with Barclays (with debit card and cheque book).

[Buenchico]

Thanks for your post, TonyV. My link, above, is from the Financial Services Authority, who are the relevant regulatory body. So it seems reasonable to assume that the information provided there is both accurate and in compliance with all official requirements.

Chris

[pretty_snowdrop]

Not every bank has to offer a basic account by law. I work in a bank and I know this is not the case. However most banks do offer a basic account for no/bad credit customers. A lot of banks will not touch anybody who were bankrupt or had credit issues within the last 6 years even if everything is now in order.