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

boogiemaster

Anyone believe in this post code check? I mean if this is true then it limits the amount of credit your offered.

http://www.checkmyfile.com/postcode-check/

Zack1

I've never seen that site before, but it's true your postcode is used. I do marketing units at uni and we've done a lot of work looking at how different areas (postcodes) are looked at and categorized. This is especially true and most obvious in the insurance market, but the same goes for finances.

For example, my home postcode is quite a rough area, with quite a bit of unemployment or people in low-paid jobs (could be let go at any time and default on loans etc as they, generally, don't have savings behind them to see them through unemployment).

My uni postcode (private rented house share, not uni-provided accommodation) is in an area made up of mainly elderly well-off people or middle-aged people in good jobs (just looking out the window at the cars confirms that!). Also anybody that stays around here is quite likely to be better qualified (maybe even a graduate) compared to those at home due to the proximity of the uni & colleges.

The likes of Capital One and those payday loan companies (credit for low earners/people struggling with bills etc) bombard houses at home with their advertising, and special rates if you quote X when you apply etc - as the marketers know they need to target those people rather than ones in more well off areas. Sending rubbish out to those people is more likely to get you sales and value for money than an expensive TV ad (although many companies combine and use many different methods)

I put my home postcode in and it scores just over 500. My uni one scores just under 950.

It's up to companies how much each characteristic affects you getting credit/insurance etc. But things like postcode certainly come into it, along with job and personal stability, age, number of existing agreements, amount of outstanding and available credit etc. If you score well in every other department then your postcode probably won't make too much difference, but it's up to the company.

It's similar to reports that Leeds building society etc scoring people based within Leeds more favorably than those outside - whether that's true or not only their key risk management people will know. By scoring people within your main catchment area lower for say mortgages, they can then display banners/signs outside their home which generates more interest and people wanting to use their local company - very cheap marketing!

mum_of_lewis

Hi,

I just put all my details in the nationwide for a quote on a loan,now i dont want a loan but just wanted to see if it accepted me, anyway i never pressed apply,just went on my creditfile and a search was on it? will this affect my credit rating? im now mad with myself because i never intended to apply :mad: so i think i may now have a search for nothing! grr.

Thanks
Janette xx

Hazzinho

It'll be a soft search, it wasn't an application so it won't affect your credit, happens quite a bit to me when I get car insurance price comparisons every year.

mum_of_lewis

Thanks,it just says loan quotation,when i saw that i panicked im trying not to apply for anything till next year!

Thanks
Janette xx

Experian_company_representative

That's right: quotation search footprints don't affect credit scoring.

By the way, a quotation gives you an indication of the price, not the outcome of the application.

James Jones

stu3599

I have today looked at my credit file and it only shows 3 lenders I owe money too. I owe money to about 10.
It doesnt even show my CCJ. What should I do?

stu3599

I have today looked at my credit file and it only shows 3 lenders I owe money too. I owe money to about 10.
It doesnt even show my CCJ. What should I do?

Tixy

Stu - You could try getting your credit file from the other 2 credit reference agencies.
Does the file you have show all your addresses from the last 6years?

How old is the CCJ? it will only appear on your report for 6years.
Likewise if you defaulted on any of your other debts then those would only show for 6years from the date of the original default notice.

LynnX_2

Hi everyone !

first time here and can anyone help . I have just applied and successfully got a new credit card with balance transfer but how long should I leave it to apply for another so I can transfer the rest of my high interest credit card debt

i was reading about CREDIT CARD SHUFFLE but martin also said it was better to leave time between applying for other cards etc. How much time???

Thanks Lynn