Hello! Help in removal of defective default from credit record

[brando69]

Re: Hello! Help in removal of defective default from credit record

This is all explained in the CRA section (I've worked on the CRA systems remember!) - basically the system checks back 3 years unless anything is derogatory within that period, if not then it moves onto the score element, if it finds something it will either pass/refer or fail based on what it has been told to do (ie programmed). So lets say you have a default that is 4 years old, not settled, then applied for other credit and had paid on time etc for the last 3 years, the system would not search back the whole 6 years. If however it found a late payment or something else, it performs a "full 6 year search" and then will refer no matter what!

Its quite complex to explain but easy in practice. Basically they auto score based on address data so if a lender asks for last 3 years addresses, you need 3 years of clear credit. If it asks for 2 years (like M&S - issued by HSBC) then they only perform a 2 year check. If however they are strict like Egg were, they'd want 5 years or 4 years with First Direct.

As I say, it varies from lender to lender... check the CRA section and it's all explained. Mortgage brokers, in fairness don't have much idea - they don't get told anything extra than you or I would, they say anything as if it DID sneak through - they'd get commission.

Most mortgages will search back a whole 6 years and will refuse if you have unpaid defaults, unless you have a lot of deposit to pay / low LTV.

Useful info for me and others

[Never-In-Doubt]

Re: Hello! Help in removal of defective default from credit record

According to my mortgage broker, who was talking about defaults recently, she said the lenders she uses, most of the main ones, look at two things (1) How much the default/s was, one of her Client's was turned down for a £300 default! (2) They only look at 2yrs & over old defaults from the date they were settled, if they are not settled, then they won't even consider it, even if it's 3,4, 5 years + since the date of the default.

Hope that helps, seems like lenders will soon have to relax lending criteria or they will run out of people to actually lend to 's

This is all explained in the CRA section (I've worked on the CRA systems remember!) - basically the system checks back 3 years unless anything is derogatory within that period, if not then it moves onto the score element, if it finds something it will either pass/refer or fail based on what it has been told to do (ie programmed). So lets say you have a default that is 4 years old, not settled, then applied for other credit and had paid on time etc for the last 3 years, the system would not search back the whole 6 years. If however it found a late payment or something else, it performs a "full 6 year search" and then will refer no matter what!

Its quite complex to explain but easy in practice. Basically they auto score based on address data so if a lender asks for last 3 years addresses, you need 3 years of clear credit. If it asks for 2 years (like M&S - issued by HSBC) then they only perform a 2 year check. If however they are strict like Egg were, they'd want 5 years or 4 years with First Direct.

As I say, it varies from lender to lender... check the CRA section and it's all explained. Mortgage brokers, in fairness don't have much idea - they don't get told anything extra than you or I would, they say anything as if it DID sneak through - they'd get commission.

Most mortgages will search back a whole 6 years and will refuse if you have unpaid defaults, unless you have a lot of deposit to pay / low LTV.

[brando69]

Re: Hello! Help in removal of defective default from credit record

They do not have to comply. No need for them to send another if they have a system note confirming one was sent.

As this is the only default, with 2 years left it's not going to cause toouch harm if you apply for credit. So personally whilst it's unenforceable; I'd just let it go. After 3yrs data is not as important so don't worry about one default so long as your current liabilities are all up to date.

According to my mortgage broker, who was talking about defaults recently, she said the lenders she uses, most of the main ones, look at two things (1) How much the default/s was, one of her Client's was turned down for a £300 default! (2) They only look at 2yrs & over old defaults from the date they were settled, if they are not settled, then they won't even consider it, even if it's 3,4, 5 years + since the date of the default.

Hope that helps, seems like lenders will soon have to relax lending criteria or they will run out of people to actually lend to 's

[Never-In-Doubt]

Re: Hello! Help in removal of defective default from credit record

Is that so? why haven't I heard this before? 'kin 'el, glad I posted it up. I have about 4 notices of correction.

is manual review such a bad thing?

Serious mate? You never heard of that? Ok, basically if you have an active NoC on your credit file then a lender cannot decline you using an automated process so it will get referred at application stage - ie "we'll get back to you in the next 7-10 days".....

If you had incorrect data on there, then a NoC is great cos they may overturn what would normally be a decline, with an accept. However if you have a default that is old and you want it to stay hidden then you DO NOT add a NoC as you're forcing the lender to perform a manual check of the application - sometimes the automated process is better as it only looks for what it was programmed to look for - a human will find older stuff that a computer would miss.

[The Debt Star]

Re: Hello! Help in removal of defective default from credit record

Is that so? why haven't I heard this before? 'kin 'el, glad I posted it up. I have about 4 notices of correction.

is manual review such a bad thing?

[Never-In-Doubt]

Re: Hello! Help in removal of defective default from credit record

Sad to think that in Scotland the period is 5 years not 6, and in Europe its 3 years.

6 years is a life sentence imo.

See here: ---> Credit Agency Data retention 6 years far too long?

[Never-In-Doubt]

Re: Hello! Help in removal of defective default from credit record

You could ask the CRAs to enter a Notice of Correction as well, stating that you dispute the Default Notice. Doesn't matter imo if the DN was valid or not for your dispute notice and I don't think the CRAs will care either.

No - don't do this as it will force all applications into manual review! No - bad bad bad move!

[The Debt Star]

Re: Hello! Help in removal of defective default from credit record

yeah but TBH I don't think they make any difference to their decision making processes. Its more for your benefit really. Your DN will be gone in 2013, not too long now.

Sad to think that in Scotland the period is 5 years not 6, and in Europe its 3 years.

6 years is a life sentence imo.

[kraygerson]

Re: Hello! Help in removal of defective default from credit record

You could ask the CRAs to enter a Notice of Correction as well, stating that you dispute the Default Notice. Doesn't matter imo if the DN was valid or not for your dispute notice and I don't think the CRAs will care either.

Thanks for the suggestion. If the application for a 'full' NatWest bank account fails, I may just do that. As I recall, lenders are obligated to pay attention to and consider any Notice of Correction on an applicant's record. May well be worth doing.

[The Debt Star]

Re: Hello! Help in removal of defective default from credit record

You could ask the CRAs to enter a Notice of Correction as well, stating that you dispute the Default Notice. Doesn't matter imo if the DN was valid or not for your dispute notice and I don't think the CRAs will care either.

[kraygerson]

Re: Hello! Help in removal of defective default from credit record

Thank you, kind sir.

[Never-In-Doubt]

Re: Hello! Help in removal of defective default from credit record

Just wait and see. It's been known that they open accounts then close them a day later if AVU (application verification unit) studies & finds fault anywhere.

You should be ok. Best of luck

[kraygerson]

Re: Hello! Help in removal of defective default from credit record

Afternoon all.

A quick update - I received the agreement and account information by post today. I am not sure if that means they've credit checked and approved me, or if they will do that once the signed agreement has returned to them.

Whatever the case may be, I have signed and popped it back into the post. I guess I will know for sure by mid/end of next week.

I think I might as well start a 'Getting back on the credit ladder' type thread if this goes through OK and provide further updates there. Might prove useful to others in future.

[kraygerson]

Re: Hello! Help in removal of defective default from credit record

Thanks for all your advice here. It is greatly appreciated.

I've submitted an online application for a NatWest Current Plus account. I'll update the thread once I know the outcome.

[Never-In-Doubt]

Re: Hello! Help in removal of defective default from credit record

Get a bank account, run for 6mth then apply for their card.

Lloyds, HSBC or natwest/rbs may be a good idea. If they knock you back wait 6 months before applying for anything else.