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Your Credit File: Your Debts What Now ?

Updated on February 12, 2017
Always inform your lender as soon as possible if you are experiencing repayment difficulties. It really will help your situation.
Always inform your lender as soon as possible if you are experiencing repayment difficulties. It really will help your situation. | Source

The Credit File.

The Credit Reference Agency.

The credit reference agencies do not make decisions about your application to a lender. They collate information on all of us, a lender will pay them for the information they hold. This is information on bank accounts, credit accounts, previous and current addresses, whether the applicant has court orders for debt or is known for late payment of bills such as regular payment and utility bills. Please note they are not informed what monies are in a bank account but should an account not be managed properly then this information is shown as unsatisfactory.

The Black List.

What black list? There isn't one. It is said that people are placed on a black list and therefor cannot get credit, this is not true. Where you live, your race or religion have nothing to do with whether you will accepted for credit in any way.

My House is Blacklisted.


A house is never blacklisted. Should a previous occupant have had financial difficulties this does not effect you in any way. Please take careful note here; Should a person living in the house be in financial difficulty it does not effect you. That is unless you have any joint accounts such as bank accounts, mortgage accounts, credit card and charge card accounts. If you do have any such financial connections, it means that you are named on the credit report supplied to the lender. Although your other commitments might be perfect, a lender will take into consideration your financial association to the person named with you on the loan or credit agreement.

I only earn a low income and cannot obtain credit.

If you earn a low income although you might have a clean credit background, it might be that you are considered a greater risk than someone earning a higher income. This would not usually stop you getting credit but the interest rate might be slightly higher, to cover a perceived risk. Lenders always look at how you have handled your finances in the past. Someone might have had a large loan in the past and be known as a bad payer. He will be turned down in the future. Another person might be on a low income with a smaller loan and be known as a good payer, he will be considered favourably in a future application.

Not having had previous credit will it matter.


If you have not had credit before it can effect your application for credit. Without a credit history a lender cannot judge you ability or attitude to repayments. You will need to build a credit profile. If you do not have a credit card you might ask your bank for one with a low spending limit, try and take out a store card perhaps. Please note I am not encouraging you to go into debt! but lenders like to see a repayment history. This also applies to someone who might have paid off credit and store cards, as well as clearing all outstanding commitments in the past.

A discharged bankrupt. Can I gain credit.

Whatever your financial past, the information will stay on your credit file for six (6) years. As a bankrupt or debtor no matter how quickly you might clear debts. Each debt will show for six years from the date of the court order. This does not mean that you will not get credit in the future. It does mean however you are an obvious risk, most lenders will refuse you, some will lend but at high interest rates. A bankrupt has to have been discharged from bankruptcy before making any application for credit.

Every application for credit will show on the credit file.


Be aware that every application for credit will show on your file whether you are successful or turned down. Should lenders see many applications for credit, it will indicate that you are being rejected elsewhere and it will appear that you are desperate for money. This is important When making an application for credit ask for a quotation search only, you might be genuinely shopping around for the best deal. This quote will not show on the file. You should be sure to tell the lender this.

Checking my own file will damage my status.

Be assured that checking your own status with a credit reference agency will not damage your credit rating. Remember that every application is taken on the merit of the applicant. Should you need advice the credit agencies will supply you with help and details. They will also supply you with your credit file for a small fee.


ALWAYS TAKE APPROPRIATE LEGAL ADVICE!




© 2014 Graham Lee

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    • old albion profile imageAUTHOR

      Graham Lee 

      4 years ago from Lancashire. England.

      Hi Dianna. Thanks for your visit. I am glad you a making your way to hopefully financial success. It is a road worth taking. As you already know we have to make a commitment to get back on track, it does take a determined decision to be made. Thanks again.

      Graham.

    • teaches12345 profile image

      Dianna Mendez 

      4 years ago

      We are currenly on our way to being debt free. It's taken a lot of work but it's going to be very nice when we are through this. You pointed out some really good points on debt and credit. I know people out there will certainly thank you for the wisdom.

    • old albion profile imageAUTHOR

      Graham Lee 

      4 years ago from Lancashire. England.

      Hi Stella. Glad you liked the hub. might be a little different over your way. Thanks for your visit.

      Graham.

    • old albion profile imageAUTHOR

      Graham Lee 

      4 years ago from Lancashire. England.

      Hi Judy. Thank you for your visit and comments. Yes a payment record is always to your advantage.

      Graham.

    • old albion profile imageAUTHOR

      Graham Lee 

      4 years ago from Lancashire. England.

      Hi Jackie. You do well in your actions. Better to keep as little debt as possible. Thank for you visit.

      Graham.

    • old albion profile imageAUTHOR

      Graham Lee 

      4 years ago from Lancashire. England.

      Hi Brad. Thank you for your visit and in depth comments. I can but agree with you, you make some very valid points.

      Graham.

    • old albion profile imageAUTHOR

      Graham Lee 

      4 years ago from Lancashire. England.

      Hi Faith. Thank you for your visit. Yes we all need to be so careful and vigilant. Thank you for your votes etc...

      Graham.

    • old albion profile imageAUTHOR

      Graham Lee 

      4 years ago from Lancashire. England.

      Hi Iris. Thank you for your visit. Things might be slightly different over there but probably similar.

      Graham.

    • old albion profile imageAUTHOR

      Graham Lee 

      4 years ago from Lancashire. England.

      Hi Stella. I think things might be slightly different over there but very similar. Thank for the follow.

      Graham.

    • old albion profile imageAUTHOR

      Graham Lee 

      4 years ago from Lancashire. England.

      Hi Bill. This info applies in England. I would think that your laws and terms are very close to ours.

      Thanks for your visit.

      Graham.

    • old albion profile imageAUTHOR

      Graham Lee 

      4 years ago from Lancashire. England.

      Hi Ruby. Glad you liked the hub. Here in England, once you have been discharged from bankruptcy, you are able to apply for credit. However, it is rare that this would be granted for a couple of years or so and then at a very high rate and extensive security required.

      Graham.

    • tirelesstraveler profile image

      Judy Specht 

      4 years ago from California

      I was astounded to discover that credit scores only determine your likelihood to repay. I thought they figured them on your ability to pay. If you pay cash for everything you will have a very bad credit score. Thanks for bringing this topic to light. I was just being irritated by the fact so many people have no idea what credit is all about.

      Judy

    • Jackie Lynnley profile image

      Jackie Lynnley 

      4 years ago from The Beautiful South

      I stay away from credit as much as I can or very short term if I ever do feel it necessary. Great info!

    • profile image

      bradmaster from orange county ca 

      4 years ago

      Graham

      Here is my problem with credit reporting agencies.

      This service is an invasion of personal privacy allowed by congress, even supported by congress. Yet, it is an invasion of privacy.

      It would be different, if the person asks for a credit report, and only it is provided only for the specific financial transaction, but these credit reports are available without any consent by the person that is the focus of that credit report.

      While these credit reports have been common place for several decades, they seem to increase the invasion of privacy, allowing anyone to get your credit information.

      Yes, credit reports do facilitate get credit, but shouldn't it be at the choice of the person, and not a bunch of computers?

      A person doesn't have to have something to hide to want their personal life to be private. Today, and everyday for decades, our personal privacy has been chipped away by both the private sector and the government.

      People don't complain until they are the victims of identity theft.

      Today, 53 million email addresses were hacked from Home Depot.

      There is not protection against hackers, and they can manipulate our view venues of privacy.

      So to have a blatant loss of personal privacy given away to credit reporting agencies by congress is not the same as the government's failure to protect our online privacy.

      As far as the precalculated credit score, we are not even allowed to know how these numbers are calculated, as they are patented. So patent protection trumps personal protection.

    • Faith Reaper profile image

      Faith Reaper 

      4 years ago from southern USA

      Very useful information here, dear Graham. It is so important that we stay on top of our credit to make sure everything is as it should be, and if there is something that needs to be removed, we need to be vigilant in having it removed. Plus, with the increase of identity theft on the rise, it is even more so important that we are mindful to keep things straight.

      Voted up +++ tweeting and pinning

      Bless you

    • Iris Draak profile image

      Cristen Iris 

      4 years ago from Boise, Idaho

      Good info, Graham. It's too bad young people don't know about this stuff (and many older people too).

    • ladyguitarpicker profile image

      stella vadakin 

      4 years ago from 3460NW 50 St Bell, Fl32619

      Hi, I learned something from this Hub. Thanks for the information. Stella

    • Mel Carriere profile image

      Mel Carriere 

      4 years ago from San Diego California

      Very useful and interesting hub. I learned a lot of things, I did not know, like about the credit quote instead of the application.

    • billybuc profile image

      Bill Holland 

      4 years ago from Olympia, WA

      Great information, Graham. A ton of stuff here that I'm sure many did not know, and it is definitely helpful. Thank you for clarifying some matters. I could have used this information about forty years ago, my friend.

    • always exploring profile image

      Ruby Jean Richert 

      4 years ago from Southern Illinois

      Interesting, I thought if a person took bankruptcy they could no longer obtain credit, I see that's incorrect. Your article is useful. Thank you for sharing this...

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