Bad Credit ?

Tummy · 31 Oct 2008 at 15:27

Basically my bank told me i have bad credit ?

I don't understand all of this shazzam !? can someone explain ?

I've never taken a loan out, not been able to pay anything, i've always had money in my account.

Handful of times i've gone into the red, like ordered stuff and been 2/3 quid short and my bank has filled that in, and i've paid it back within 2/3 days.

Confused

leaskovski · 31 Oct 2008 at 15:29

Nationwide?

They are removing some peoples overdraft limits at the moment.

[TW]Fox · 31 Oct 2008 at 15:30

Tummy said:
Basically my bank told me i have bad credit ?

Yup.

Handful of times i've gone into the red, like ordered stuff and been 2/3 quid short and my bank has filled that in

This is called an unauthorised overdraft. Your bank considers, rightly so, that the fact you can't even manage small purchases properly make you a poor credit risk.

Tummy · 31 Oct 2008 at 15:31

Lloyds TSB

I was so shocked, the lady told me someone could have applied for credit in my name.

This literally just means nothing to me, i have no idea how this will affect me.

Tummy · 31 Oct 2008 at 15:32

Thanks Fox, so how do i get good credit ?

G|mp · 31 Oct 2008 at 15:32

If you were to have taken loans out and had credit for things and overdraughts and what not your credit rating would be much better as it proves you are capable of paying things back thus increasing your credit score

Raymond Lin · 31 Oct 2008 at 15:33

Tummy said:
Thanks Fox, so how do i get good credit ?

get a credit card, then pay off the minmum only for a year.

Mirage · 31 Oct 2008 at 15:33

You need to get credit to improve your credit score...it's a bit of a catch 22 situation.
You don't start with a good credit score and work from there, u start at the bottom and by getting loans/CC's and paying them off in time you increase your score.

So you've pretty much started at the bottom, and just gone down by having unauthorised overdrafts...

LiE · 31 Oct 2008 at 15:33

When I had bad credit I signed up at https://www.creditexpert.co.uk/ here you can see what your credit looks like which may help you. I went from being turned down for credit cards to having credit cards with £4,000 limits.

K.C. Leblanc · 31 Oct 2008 at 15:33

If you look on moneysavingexpert.com there's quite a lot of info on there about credit records.

Bare in mind for some products not having any major black marks against you isn't enough. They actually want you to have held credit in the past and paid it back without incident.

Cuchulain · 31 Oct 2008 at 15:33

Tummy said:
Basically my bank told me i have bad credit ?

I don't understand all of this shazzam !? can someone explain ?

I've never taken a loan out, not been able to pay anything, i've always had money in my account.

Handful of times i've gone into the red, like ordered stuff and been 2/3 quid short and my bank has filled that in, and i've paid it back within 2/3 days.

Confused

As mentioned above, it's more likely that you have no credit rating rather than a poor one, unfortunately it's almost as bad.

Knubje · 31 Oct 2008 at 15:34

Yeah, Fox is right. Basically any time you slightly over step the mark (even by pence) the bank will be all over your ass like nappy rash.

These days things are becoming "tight" so you have to work hard to prove you can manage your finances.

Best thing to do is to stay above 0 and also if you have a credit card, make the monthly payments in a timely manner so you aren't late.

Don't make ANY late debt payments or that will affect you too. The more "good" payments you make it will increase your credit rating.

You will probably have to wait 6-12 months of good payments before the "bad" ones are overwritten.

Cuchulain · 31 Oct 2008 at 15:35

Knubje said:
You will probably have to wait 6-12 months of good payments before the "bad" ones are overwritten.

Is it not 6 years after the account is settled/becomes inactive?

Tummy · 31 Oct 2008 at 15:36

Thanks guys !

right so its not like something that i can fix over night ...

Thing is i don't really use my bank much / at all. I literally just use this for buying things from the net

Knubje · 31 Oct 2008 at 15:37

Cuchulain said:
Is it not 6 years after the account is settled/becomes inactive?

Possibly, I'm no banker, only work in one

But as I understand it if you start to build up a good track record (i.e- 6-12 months of good payments) it makes you look better and the older stuff is less important.

I.E "Look Mr.Banker, I have changed and can make payments now".

Mirage · 31 Oct 2008 at 15:38

Seriously, get a credit card to make purchases you know u have the cash for (and would usually use your debit card for) and pay it off instantly. Not only will it increase your credit rating, but you get added security using a credit card.

Tummy · 31 Oct 2008 at 15:42

Yeah, today made me realize how much i know nothing about important things in life, but know loads of really rubbish things.

Admiral Huddy · 31 Oct 2008 at 15:48

All sorts of things are factored. Even your spouse, as I found out painfully.

Glaucus · 31 Oct 2008 at 16:03

[TW]Fox;12807369 said:
Yup.

This is called an unauthorised overdraft. Your bank considers, rightly so, that the fact you can't even manage small purchases properly make you a poor credit risk.

That is not shown on your credit report though.
It could be several reasons, multiple addresses, not on the electrole register or just that he hasn't had any credit before to rate him.

Sagalout · 31 Oct 2008 at 16:07

Why have your bank told you you have a bad credit rating?

They would only see your credit rating if you'd applied for a loan or something with them, which it doesn't sound like you have.

Unless they are talking about their own rating of your account? In which case don't worry about it - as mentioned already an unauthorised overdraft wont appear on your actual credit record, and you can always move to another bank to start again with a current account.