I thought I’d never get a mortgage after broadband firm ruined my credit score – you could make the same mistake I did
WHEN a letter from a debt collector demanding £120 for an unpaid bill landed on my doorstep last September, I thought it was a scam.
I always pay my bills on time and other outgoings such as electricity and council tax are in my partner’s name.
But then I discovered my old broadband provider EE had failed to cancel my old contract for a 5G router after I moved house a few months before.
At the time I had called EE and said I wanted to take out a new contract, which they had agreed to but they kept billing my old address even though I had told them I’d moved.
The situation left a black mark on my credit score, and it would take 10 years before it would be scrubbed off.
I saw my credit score fall from fair to poor and started worrying I wouldn’t be able to get a mortgage or a credit card. I also worried about whether I should pay the £120, even though I didn’t owe the money.
I spoke to EE who said they would listen to my original call and get back in touch – but they didn’t.
When I rang several weeks later, they said that the original call had been lost.
They agreed to stop billing me but said I would need to settle the £120 with the debt collection company.
A few months later I got a letter from the debt collection firm saying my account had been closed and I thought the issue had been resolved.
But I soon discovered that my credit rating had fallen to poor and a mark had been left on my file.
Such marks can stay on your file for up to six years.
This is where I made my mistake. I didn’t realise that EE should’ve removed the mark and I didn’t know I could challenge it.
Instead, I started trying to improve my score by doing things such as joining the electoral register.
Registering to vote helps lenders verify your name and address, reduces the risk of fraud and makes it easier to get credit.
I also ensured that I paid off all my other debt, such as payments I was spreading out on my Buy Now Pay Later. .
Paying your monthly credit card bills or loan and mortgage repayments on time shows lenders that you are a reliable borrower and ultimately boosts your credit score.
But still my poor score didn’t move. When I contacted the EE press office, they apologised quickly.
They said the debt had been wiped and helped remove the mark. It also paid me a £50 gesture of goodwill for the poor customer service it had offered.
My credit score has now improved to fair, but there are ways to resolve mistakes.
How to boost your credit score
Your credit score gives an overall picture of how responsible you are with money.
The score shows lenders whether you’ve been a reliable borrower in the past.
If you’ve never used credit before you may have a low credit score and struggle to get accepted for credit.
To boost your credit score, show lenders you are a stable, reliable individual by registering to vote.
Being on the electoral roll confirms your address to lenders so can significantly boost your credit score – it can add 50 points, according to Experian.
Get a copy of your credit report – you can get one for free from Experian, Equifax or TransUnion – and check it for mistakes.
Make sure your personal details are correct and that any missed payments or black marks on your file are correct.
If there are mistakes, ask the financial firm involved to correct them or ask for a note to be put on your file explaining them.
Finally, consider getting a credit builder credit card.
These are designed for people with poor or limited credit histories.
This means you are more likely to be accepted but the interest rate may be higher and the credit limit lower than on mainstream cards.
Some of these cards come with rewards too.
HOW TO CHALLENGE A CREDIT MISTAKE
If you think there is a mistake on your credit file and the company will not remove it, then you can complain to credit reference agencies.
There are three main ones in the UK – Experian, Equifax and Trans Union – and there is also a service called Check My File, which lists all three.
They have 28 days to remove the item or tell them why they don’t agree with you.
DON’T BURY YOUR HEAD IN THE SAND
Receiving a letter from a debt collection agency is never pleasant, but it is important to get proactive and tackle the issue straight away.
Ignoring it can result in a rising debt pile or even a court judgement against you and further financial penalties.
Letters from collectors are often vague and do not directly state how much you owe or who you owe it to.
So picking up the phone, and establishing what has happened can help you get the ball rolling.
KEEP A PAPER TRAIL
Like many other telecoms providers, EE mainly handles complaints and queries over the phone, not via email or letter.
This can create a number of problems, as you may easily forget what you said in a call or important dates.
If you find yourself in a similar circumstance, I would recommend emailing or sending a letter of complaint to the company.
Include as much detail as possible, as this can act as proof if you chose to take the issue further, such as contacting the ombudsman.
