Credi Rating Question

[QCKate]

Does anyone know if your credit rating improves each year even if defaults havent yet dropped off your file.

So for example if my last default was in August 2010 should my credit rating be better now (after two years) than in September 2011??

Thank you all.


QCK

[jax50]

Re: Credi Rating Question

that's a good question, and i suppose the asnwer would be it depends on the attitude of the person looking at it. A bank for example might have straight forward rules which state what they have to do in the case of a default, so they have to stick to their rules. Any other organisation my look at it and think, ah well, that was x years ago and it's been okay every since, Some may charge a higher interest rate if they consider it is a higher risk than 'normal'.


if you are looking into a loan or somehting, try asking them before you fill in an application, because i think rejected applications can appear on your file too...and you don't want them.

[labman]

Re: Credi Rating Question

Have a read of this - it may help:

http://www.bbc.co.uk/news/business-17628048

[QCKate]

Re: Credi Rating Question

Have a read of this - it may help:

http://www.bbc.co.uk/news/business-17628048

This is what I was hoping for, thanks Labman.

"The negative impact that the default has on credit scoring will reduce over time and may eventually be outweighed by more recent positive repayment information."

QCK :tinysmile_grin_t:

[jax50]

Re: Credi Rating Question

That was a very interesting article.