Credit Rating: How it works and How to improve it discussion area

incesticde

izools wrote: »

I think the closer to the limit you take the card whilst still repaying it in full each month, the more likely Barclaycard are to increase (or allow an increase) your limit in six months time.

cheers for the info izools, good to know....

But will maxing my card every month hinder my credit re-building efforts? (i.e. does it look 'bad' if i go close to maxing it every month?). I'm more concerned with upping my credit score than getting a nice high limit with a low apr on the card (although getting both at the end of the journey would be lovely-jubbly! :rotfl:)

sscott5581

incesticde wrote: »

(Sorry if this question has been asked before , I did do a search but nothing came up)

I'm re-building my credit record up using a Barclaycard initial, my limit is £400 and I'm re-paying it in full monthly.

Should I be keeping my monthly balance to a certain percentage of the credit limit? Should I be maxing or just a small amount each month? which one is better?

Barclays increased my limit from £1500 to £2500 after 6 months, I spend about £200 a month on it and pay off full every month.

Mr.Mulla

incesticde wrote: »

(Sorry if this question has been asked before , I did do a search but nothing came up)

I'm re-building my credit record up using a Barclaycard initial, my limit is £400 and I'm re-paying it in full monthly.

Should I be keeping my monthly balance to a certain percentage of the credit limit? Should I be maxing or just a small amount each month? which one is better?

Put a limit on how much you should spend and can afford. It's good that you are paying them the full balance, doing this is actually a good way to increase your credit score.

I suggest, don't max out your card, it would be good if you just use half or like what izools say close to max. But don't max it out.

girlymonkey

Hi,

I have 3 defaulted accounts on my credit report, all of which are with debt collection agencies. I struggled to pay my debts when I was studying hence the defaulted accounts but I have now been repaying all 3 back for over 2 years with default. Can I insist that my credit report reflects this?

Thanks in advance for your help.

Girlymonkey

never-in-doubt

girlymonkey wrote: »

Hi,

I have 3 defaulted accounts on my credit report, all of which are with debt collection agencies. I struggled to pay my debts when I was studying hence the defaulted accounts but I have now been repaying all 3 back for over 2 years with default. Can I insist that my credit report reflects this?

Thanks in advance for your help.

Girlymonkey

Nope - the default remains for 6 years afterwhich it simply drops off your credit file, whether or not you have completed repayment of the debt. :eek:

never-in-doubt

Mr.Mulla wrote: »

Put a limit on how much you should spend and can afford. It's good that you are paying them the full balance, doing this is actually a good way to increase your credit score.

There is no actual evidence of this, it is usual that you're classed as a better customer if you retain a balance on your account, maybe every so often clearing it in full just to show you can!

Remember banks think different to the norm, a good bank customer is someone that is overdrawn and uses a credit card with a balance etc - not someone that has no credit with the bank and saves religiously.... contrary to popular belief

Chrysalis

bowden769 wrote: »

Hi

i am new here i am trying to get a mortgage with my girlfriend

she has a 999 credit score
and mine it 377

will we be able to get one with my score being so low ??

where do you get these scores? the agencies dont have scores.

stella2009

Chrysalis wrote: »

where do you get these scores? the agencies dont have scores.

From the CRAs, but they are complete !!!! to be honest!!

Take these scores with a pinch of salt, and if you have paid for them then you have been ripped off.......

Chrysalis

stella2009 wrote: »

From the CRAs, but they are complete !!!! to be honest!!

Take these scores with a pinch of salt, and if you have paid for them then you have been ripped off.......

experian etc. dont give a score when asking for a report thats why I am baffled.

I got a sheet of paper showing this.

Current registered debt, such as loans and credit cards.
Whether or not payment is made on that debt each month so a 0 for each month to show its paid.
My address thats registered on the electrol roll.

Thats it, no score.

As I understand it the score is calculated by the company who you doing a claim with eg. capital one based on the computer software they use and how it scores information fed into it which some of that information comes from CRA's and the rest from the applicant.

never-in-doubt

Chrysalis wrote: »

As I understand it the score is calculated by the company who you doing a claim with eg. capital one based on the computer software they use and how it scores information fed into it which some of that information comes from CRA's and the rest from the applicant.

Scores work by the lender, but the CRA's have started to sell their version which - we are trying to tell you - has no bearing on anything, as it is not based using the specific lenders scoring model (criteria), for instance Tesco may want housewives to apply and so score them higher than maybe RBS who may be looking for young professionals..... my point is that scoring is unique to each lender and each lender scores differently.

The scores that the CRA's sell (for a fiver or whatever) is designed to give you an idea of how a lender will perceive you, but they don't have a clue in reality because each lender scores uniquely which the CRA's are not privvy to - a lender does not divulge the scoring model or we could abuse it, the points allocated mean nothing to us anyway as they all combine to create an overall credit score and then with the CRA data they can see, this provides a fail (decline), pass (accept) or refer (adverse data or notice of correction on your Credit File). Dependant upon the score will depend upon the answer the system is programmed to give!

Hope that clears it up for you.