How Can I Improve Credit Rating

[Lucky4Seven]

My current credit score with Experian is 513.

I only have 1 default registered 12th June 2018.

The default is virtually a year old.

I'm finding it very difficult to obtain credit.

How can I improve my credit rating if lenders wont lend me credit?

This is the only bad marker on my credit file.

Everything else is okay.

[Amethyst]

If you settle the defaulted debt things will improve quicker than if it is left as an unpaid debt... you should check your other credit files, and bear in mind that lenders don't see the score, so it is just a bit of a guide for you as to how things are doing. If you have made multiple applications for credit that have been turned down that could affect your credit score as well - this would show in searches.

Are you keeping an eye on your file through MSE Credit club ? ( free access to the experian report )?

You should also check your equifax and transunion files ( clearscore and creditkarma for free access to those )

[Lucky4Seven]

If you settle the defaulted debt things will improve quicker than if it is left as an unpaid debt... you should check your other credit files, and bear in mind that lenders don't see the score, so it is just a bit of a guide for you as to how things are doing. If you have made multiple applications for credit that have been turned down that could affect your credit score as well - this would show in searches.

Are you keeping an eye on your file through MSE Credit club ? ( free access to the experian report )?

You should also check your equifax and transunion files ( clearscore and creditkarma for free access to those )

I haven't been applying for lots of credit.

I'm just concerned that Experian is 513, and TransUnion is the same.

Thats the only bad marker is the default.

How can I settle the defaulted debt?

The company said that they would not chase me for the outstanding balance?

[Amethyst]

Why have the company agreed not to chase you the the outstanding balance? Are they reporting the debt as defaulted each month ?


Experian score is out of 999

Transunion score is out of 710

Equifax score is out of 850

so that they are the same is coincidence, and the scores do really mean nothing other than to give you an idea.

What kind of credit are you applying for ? (how do you know you are finding it difficult to obtain credit if you've not applied etc)
Any other issues - any short term loans ( even if paid off propertly without default they can affect your scoring poorly ) ?
Ratio of debt to income also is taken into account.
Paying minimum payments only on credit cards also.
Any financial connections/linked addresses that might be dragging you down?
Are you on the electoral roll?
Age... home ownership .... length of time at property, job, having had correctly managed credit in the past ( rather than nothing) and so on....
There's so many things that can affect the way lenders consider your application it's not going to simples to tell you what is best to do without having a better idea what you are wanting to do, about this default, and anything else on the file

[Lucky4Seven]

Why have the company agreed not to chase you the the outstanding balance? Are they reporting the debt as defaulted each month ?


Experian score is out of 999

Transunion score is out of 710

Equifax score is out of 850

so that they are the same is coincidence, and the scores do really mean nothing other than to give you an idea.

What kind of credit are you applying for ? (how do you know you are finding it difficult to obtain credit if you've not applied etc)
Any other issues - any short term loans ( even if paid off propertly without default they can affect your scoring poorly ) ?
Ratio of debt to income also is taken into account.
Paying minimum payments only on credit cards also.
Any financial connections/linked addresses that might be dragging you down?
Are you on the electoral roll?
Age... home ownership .... length of time at property, job, having had correctly managed credit in the past ( rather than nothing) and so on....
There's so many things that can affect the way lenders consider your application it's not going to simples to tell you what is best to do without having a better idea what you are wanting to do, about this default, and anything else on the file

I have it in writting that they will not persue me for the outstanding balance which is about £845.

The defaulted balance is around £35.

I have lived at my address for nearly 6 years, and I'm on electrol roll.

I've had my bank account nearly 6 years, all payments with them up to date.

All other bill paid up to date.

I am retired on health grounds, so I tick retired on application.

My income is around £1000 per month, and I dont pay the mortgage as its my partner's property.

I simply tick private tenant on application.

I dont really know why I'm being declined apart from a year old default, it is being reported each month and will be up until 6 years.