Credit Rating - How do i improve it?

[VictoriaH]

I was recently rejected a mortgage due to an adverse credit rating
I missed a mortgage payment by accident a few months ago
My broker told me i can't take out a new mortgage for 12 months

What's the best way to improve ones credit rating?

[HantsAgent]

Reduce your level of overall debt.

Have credit, but make sure you pay *everything* on time.

Don’t ever consider using payday lenders.

Wait for time to pass, it won’t happen overnight.

[RedHitman]

What's the best way to improve ones credit rating?

Make sure you pay your debts on time, all the time.

[Gordon999]

Offer payment by monthly standing order from your bank's rental income account.

[loanarranger]

One missed mortgage payment is not a hanging offence but does indicate a question over one’s reliability. 12 months seems somewhat harsh but taking account of your other post such applications need to be accompanied by a corresponding amount of supporting information which might explain why a Standing Order might have been rejected , and whilst it is obvious that there was insufficient cleared funds to cover the payment, there might have been mitigating factors. Get your broker to look at your Credit Insight and the last 6 months and then establish if there is any flexibility from a lending point of view.

[Lingy]

That one payment missed can last 6 years ,You might want to write to the original lender to ask if they can remove the mark off your credit file ,It is worth trying that first .

[loanarranger]

Regrettably that would not be possible, data collection necessitates that if a payment is even 1 day late there is a ( 1 ) inserted in the credit profile , it is one of the reasons why Credit Card payments be setup by a Direct Debit arrangement and not putting the onus on the borrower to ensure the payment is made just in time. The fact that the mortgage lender wasn’t able to collect the mortgage payment is because on the date the DD request was made there was insufficient funds to enable the payment to be made. If indeed there had been adequate funds available then the poster would by now have demanded a correction to the missed payment.

[Lingy]

You are wrong . i had severn trent remove late payments on my credit files ,and with just a little bit of b.s .It is possible .And to be fair lenders would try to increase interest to such lenders .So i would try before contacting high interest lenders .

[loanarranger]

When I read the letters B S I take it that the facts as presented to the Water Board were exaggerated to the water board. Not impressed in the slightest.

[Lingy]

It does not matter if you were impressed or not .The credit agencies were supposedly (Yeah right ) set up to suit lenders and buyers .Sadly lenders use them to reep higher interest from borrowers with minor marks against them .A woeful practice ,Especially as it can last for six years !!! Obviously you are a loan arranger and are more interested in arranging higher interst rates to borrowers in this possition.A very lucrative con IMO .
enjoy your day .

p.s O.P do try them first ...Obviously not just a bank teller .

[JayDavys]

LA is one of, if not the most, helpful poster on these boards offering free and wide ranging advice that has no doubt saved many posters a lot of time and money. To suggest otherwise because he called you out for using bovine faeces to change your credit rating is out of order.

[PJackson]

The credit agencies were supposedly (Yeah right ) set up to suit lenders and buyers .

Back in 1981 I did a graduate trainee course and spent a day learning about the credit rating part of the business. It was set up solely to help us decide whether to accept applicants as customers without putting them off by asking to many questions. We were the biggest mail order business in the UK - GUS.

For most people we only used two pieces of infomation: the address and whether they had a telephone number. We bought the electoral roll on paper from councils and typed it in and the main part of the rating was whether you were on that and the past behaviour of people at and near that address. That was later made illegal.

The group's credit rating part was spun off, bought an american agency and changed its name to that of the american company - Experian,

[duckandcover1]

If you are looking to move, have you tried approaching your current mortgage provider to see if they will provide you with additional funds? They will know better than anyone your payment history so the broker may not necessarily be correct with the 12 months thing

Also, depending on the reasons for the missed payment (bank switching service etc) you may be able to get the mark removed from your credit file as a good will gesture, especially if it was a genuine mistake. But don't lie to get it off there, it will not be having a significant impact to risk that