Low Credit Score

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soziblewuup
soziblewuup Posts: 18 Forumite
in Credit cards
Hi,

I ran an Experian Credit Score check and received a score on the Poor/Fairly good boundary. I've read lots of good stuff on here about how Credit Scores are nonsensical and carry no real weight when applying for credit; however, I would still be interested to find out why my Score is low as it does appear to be an indication of how lenders view you - to some extent.

I've only recently moved into my own house (4 weeks ago), beforehand living with my parents. It appears that my Credit Score mirrors my fathers exactly. Are Credit Scores directly affected by the property you live in? His score has been decreasing recently for no apparent reason (he's never missed a credit payment) and mine has took a nose dive simultaneously.

I'm wondering how I've arrived at this score. I'm 23 and have never had a credit card. I pay Car insurance, Car payments, life insurance, mortgage etc. off using DD.

I've now updated my Experian Account to reflect my change of Address. Will this help? Will my Credit Score now separate from my fathers?

Any information would be appreciated.

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    Scores are entirely irrelevant.

    Your report is separate from your father's, unless you have joint financial products.
  • eskbanker
    eskbanker Posts: 31,066 Forumite
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    Don't focus on the score, but look at the entries on the report, and especially negative factors and recommendations to address them. For example, get yourself onto the electoral roll at your new address sooner rather than later....

    Read up on other ideas at:

    http://www.moneysavingexpert.com/loans/credit-rating-credit-score
    http://www.moneysavingexpert.com/loans/build-credit-history
  • soziblewuup
    soziblewuup Posts: 18 Forumite
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    Thank you for the information both.

    @eskbanker, I've just switched addresses for the electoral roll. Which Credit Score report would you recommend getting?

    Thank you for the links, I will review later.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    You should check all three of your files, as different lenders report to different CRAs.
  • soziblewuup
    soziblewuup Posts: 18 Forumite
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    I've just signed up for the MSE Credit Club and viewed the Experian Report; however, nothing much is on there.

    There are two open Accounts (Mobile Phone contract and Car payment). I would have expected to see other things like Car Insurance on there too. Or is that a separate thing altogether?

    Strangely my Phone Contract Account is showing as up-to-date with the balance for each month displaying as £0.00 and the overall credit displaying as £0.00

    Is there a way to check if I have anything negative marked against me?
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    Check your other two files.
  • marty2be2000
    marty2be2000 Posts: 205 Forumite
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    soziblewuup wrote: »
    Thank you for the information both.

    @eskbanker, I've just switched addresses for the electoral roll. Which Credit Score report would you recommend getting?

    Thank you for the links, I will review later.

    How long ago did you switch, it maybe that the local authority have not yet sent the update file to the credit reference agencies. Updates are typically sent monthly and it will take a while for the agencies to update their records. It could take 8 weeks or more depending on where you hit the update cycle.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    marty2be2000 wrote: »
    Updates are typically sent monthly and it will take a while for the agencies to update their records.

    Actually, in most cases, annually. So it could take a fair bit longer.
  • Lumanous
    Lumanous Posts: 132 Forumite
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    soziblewuup wrote: »
    I've just signed up for the MSE Credit Club and viewed the Experian Report; however, nothing much is on there.

    There are two open Accounts (Mobile Phone contract and Car payment). I would have expected to see other things like Car Insurance on there too. Or is that a separate thing altogether?

    Strangely my Phone Contract Account is showing as up-to-date with the balance for each month displaying as £0.00 and the overall credit displaying as £0.00

    Hello,

    In my experience things like car insurance would not show on there even if you pay it monthly. It won't record all direct debits but only those things with a particular credit agreement like your phone contract or things like car finance and furniture credit agreements. e.g. unlikely to see your energy bills on there but likely to see credit agreements for study fees (e.g. open university). Of course not always the case but just giving examples from experience.

    e.g.
    - Rent would not usually show but mortgage would.
    - Student loan would not show, but non-government credit agreements for study would.
    - Credit cards and current accounts would usually show, savings accounts would not.

    For your phone account that sounds normal. They are typically treated like a credit agreement as oppose to an outstanding 'loan', so as long as you keep paying, and even if the contract value each month goes up and down, it should continue to show as paid but without an 'outstanding' balance. Again not a hard and fast rule but from those I've had experience with I understand this is usually the case.

    Hope this helps :) you'll soon learn more about it all, lots of good help to be found here. Good luck
    :A
    No, my username is not a typo :tongue:
  • Ben8282
    Ben8282 Posts: 4,821 Forumite
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    The 0 balance reporting is normal for out of contract mobile phone accounts. They only report the outstanding amount due under the contract; not the amount of the monthly bills. My mobile phone contract reports 0 balance every month but unlike you no credit limit is mentioned.
    Assuming the accounts that you see are in order, no late payments, no defaults etc then I don't think that there is anything wrong with your credit history as such. The most likely explanation is a lack of credit products such as a credit card or a bank account with overdraft facility. This probably means that you have 0 available credit as far as revolving credit accounts are concerned. Another problem, simply due to your age, could be a low average age of credit accounts.
    Do you have a mortgage? If you got a mortgage a month ago when you moved into your new home and also you have managed to obtain car finance, then your credit can't be that bad can it ...
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