Your credit score is only ever done at the point of application for credit. All that's held on a regular (monthly) basis is your payment record history and amount of available credit.
The actual scoring is done by the company you apply for; they apply different weightings to various aspects of your record - number of accounts, average amount of credit, how often you missed a payment, and number of credit applications.
The fact that you applied for (and were refused credit) once shouldn't matter much; if you applied to someone with a low rate and strict lending policy then you'd find that most people would fail.
Companies that charge higher rates for the loan will be less fussy, some will only check that you haven't defaulted.
The thing that makes most difference is if you have missed a mortgage payment. If you have missed one in say Feb 2007, you'd be better waiting a month or two until you've 12 clean months.
The thing that companies do look at is how frequently you made an application; if you make a lot in a short period of time (more than 3) then it shows you are desperate and potentially a bad risk. Just having made one
in October (3 months ago) shouldn't affect you seriously, but if you fail this application then you need to wait another year or so.
If the company failed you in October, that company is far less liekly to accept you now as all the companies are tightening things up due to the credit squeeze. You will probably find someone but not at a cheap rate unfortunately. You may be best going to a broker, Bradford & Bingly marketplace for example, as they will have a good idea of who will and who won't accept you. Don't pay a fee though, a good broker will get commission from the loan company and not charge you.
If you use CreditExpert.com, they will quote a credit score but it's their own, purely their own scoring system.
If you don't, they do a month's free trial.
If I remember correctly, CreditExpert gives you a score out of 1,000. Divide by 10, giving yourself a score out of 100, and that's the likelyhood as a percentage that they think you will repay the debt. so if your score was 850, they think there's an 85% chance you'll repay and a 15% chance you'll default.
johnny c · 8 years ago