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

andyuk01

Sorry - posted on wrong thread

phoebe_m_2

I am 18 years old and looking to get a credit card , mainly for the security of online purchasing however also i'm looking for a credit card with rewards, i.e the british airways credit card.
I believe i have an average credit rating , would i qualify to get this credit card?
I have three accounts one being a savings, and the other two with no overdrafts.
Would anyone be able to give me any advice on this matter?
Thank you

Zack1

I'd be amazed if you got that as an 18 year old. If you haven't got a large income then I'd forget it

You'd be best off starting with your bank as they can score you internally (using data based on how you've conducted your existing accounts - if you've conducted them well then that will give you an advantage). If they reject you then Capital One, Vanquis and Aqua are alternatives.

Just wondering, are you a student? A lot of banks like to shove credit cards down your throat as a student (Natwest offered me theirs, and I've already got it!) so if you are then applying for a student one will help your chances

Gordi06

I applied for a deferred payment plan in a camera, and ws declined. I was curious to understand why so check my credit history with experian, There were 2 late paymnets in 2009 on a credit card where the \cc company had made an automatic payment for a protection plan \i seem to remember anyway it was £4 on the account, I didn't know about this as it was being managed online, I knew I'd not spent anything and was somewhat surprised when a letter arrived, needless to say the amount now £7 wa paid off. I'm not sure if this or the fact I've only been in this address less than a year is the reason for the refusal .... any suggestions

Regards
Confused Gordi

MoneyWasting_Expert

phoebe_m wrote: »

I am 18 years old and looking to get a credit card , mainly for the security of online purchasing however also i'm looking for a credit card with rewards, i.e the british airways credit card.
I believe i have an average credit rating , would i qualify to get this credit card?
I have three accounts one being a savings, and the other two with no overdrafts.
Would anyone be able to give me any advice on this matter?
Thank you

Capital One was the first card I got when I turned 18. There a pretty good card to start with, as they usually give you a pretty low credit rating that will protect you from getting head deep while giving you the opportunity (if used correctly) to start and build a good credit history. As for a British Airways card , you probably need an impeccable credit history that has a lengthy history of green ticks and nice income. If my credit history was perfect I would still fail on the income part. Just getting a BA rewards card is expensive enough.

flapmio

Recently got rejected for some credit and thought I would take a look at my credit score. Saw Equifax as one of the companies listed to do this and thought I'd try out there 30 day trial.
After I had entered all my details I was asked some questions about recent activity on my bank account which I answered. I was then sent an e-mail telling me to call them and was asked some more questions. I was worried by now thinking there was a problem with my credit and so rang them answered the questions, they then told me that that everything was fine and as a last step to upload some identity documents to them via their website (utility bill and photo id). I have done this reluctantly. I was wondering if anyone can answer these questions for me:

1. Do Equifax do this for all users or only users that have some sort of issue with their score?
2. If they do this for all users why don't they have a warning message BEFORE a user fills in all their details that this is what is expected? (Questions on account and identity documents)
3. Is this normal procedure for all credit agencies now or do only Equifax ask for document proof?
4. Am I safer now because of going through this process (i.e. harder for other people to get my credit details) or am i worse off because i have just given a company waaay too much information about myself?

Also, if this is normal practice can moneysavingexpert put this warning on their website that users may have to go through this process when signing upto one of these companies?

Thanks

Zack1

flapmio wrote: »

1. Do Equifax do this for all users or only users that have some sort of issue with their score?

Not an "issue" as such, but if they have had trouble verifying you electronically - for example if you only have a few credit agreements they don't physically have enough information to confirm it's you. I had to upload documents but I find Equifax very good

2. If they do this for all users why don't they have a warning message BEFORE a user fills in all their details that this is what is expected? (Questions on account and identity documents)

I think it does say somewhere they reserve the right to request X, Y & Z if they can't verify you automatically (just like the other CRAs also do)

3. Is this normal procedure for all credit agencies now or do only Equifax ask for document proof?

It's normal if they have trouble identifying you. Equifax are the best out there in my opinion, never had any trouble with them - they approved the documents very quickly for me, and I get their "credit watch" service because I'm with Capital One.

Experian on the other hand are a total joke and are still messing around with my file because I apparently don't live where I said I do :mad:. Their customer service is appalling and I'd avoid them like the plague, especially if signing up to a "free trial", incase you need to jump through hoops to cancel it

4. Am I safer now because of going through this process (i.e. harder for other people to get my credit details) or am i worse off because i have just given a company waaay too much information about myself?

Probably safer in that if somebody tried to obtain your credit report in future they have more information to cross-reference to check it's you that has requested it (or not). Certainly not worse off, I really wouldn't worry about Equifax having your details - they had them in other forms already

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cettefemme

Hi, I'm rather confused right now and need some clarification from someone more knowledgeable than I am!

I decided to get a credit report and credit score check from Equifax. My credit score (or 'credit rating' as Equifax puts it) is 438, apparently. Now, I've been told that anything below about 650 is high risk and won't be given credit (I already have a credit card, I was just curious and wanted to see a numerical value for my score), but Equifax puts all of my scores at Good or Excellent (most at excellent) in the detailed breakdown for things such as up to date payments, being on the electoral roll, etc and also labels my overall score as 'Good' and says 'You have a score of 428. Your score is highly predictive that you would be a good candidate for credit.You are above the average for UK borrowers. Most credit grantors would consider this score good.'

I'm so confused...if below 500 is supposedly horrific, why is Equifax saying I have a commendable score at 438? Do they use some kind of different scale. Are credit ratings and credit scores different things? For reference, on the scale shown, they have 0-299 as very poor, 300-349 as poor, 350-399 as fair, 400-474 as good and up to 900 as excellent. This is not what I'm finding elsewhere?! Do I have a good score as Equifax says, or a bad score?

For the record, although I don't earn much (I'm a student and as such work only part time), I have a credit card that I have never missed a payment on, and am generally careful with my finances.

MoneyWasting_Expert

Haven't bothered with a credit score yet, not worth it. I just subscribe for the Equifax Credit Report (from 2/6/11) and keep an eye on my history and make sure it updates correctly. Have a default listed that should of been removed. Full amount collected at my door. No receipt or agents name over 2 years ago (Club 24) Disputed with Equifax within a day Notice of Correction place, saying that I am disputing information on my credit File and Report may not show me accurately. I ll post back when I get any update. I have defaults on my account, I don't need a credit score, its low trust me on that.

Kyresa

Has anyone been able to register for Noddle yet?

Info about Noddle

http://www.noddle.co.uk/