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

sfax

seanacy67 wrote: »

Hi

I was just wondering if I paid multiple payment off my credit cards a month would that build a better credit score eg

minimum payment = £100 so instead of paying one £100 I pay say £25 four times up to the cut off date.

Because don't you get so many points per payment !!

Any help would be great

In short: no. In fact I would avoid paying early full stop unless you took a cash advance and interest was being charged from day one. Wait for your statement, pay just before the due date (preferably by DD), and pay more than the minimum

DCFC79

kiffer wrote: »

dear all.

hello my name is chris im 34 years old and never been able to get credit...i have asked and had credit reports but they mean nothing to mei could not get 1p credit...could anyone help...cheers

Start by running your current account very well.

Fruit_and_Nut_Case

kiffer wrote: »

dear all.

hello my name is chris im 34 years old and never been able to get credit...i have asked and had credit reports but they mean nothing to mei could not get 1p credit...could anyone help...cheers

If you've never had credit then your credit report will be rather blank so not a lot to understand.

Would you care to elaborate on what means nothing to you?

salgoud

Hey all! Quick question-

Is it bad to open a credit card just to use it for a reward, then close it? I noticed that Ryanair give you a free return flight within europe if you spend £100 within the first 6 months of opening your card. I already have another credit card (Tesco) that I prefer, but am tempted to open a Ryanair one just to clear the flight and close it once I've used this reward. Would that be bad for my credit rating? Alternatively, is it bad to have an idle card that you don't use once I've cleared the offer?

Thanks!

sfax wrote: »

In short: no. In fact I would avoid paying early full stop unless you took a cash advance and interest was being charged from day one. Wait for your statement, pay just before the due date (preferably by DD), and pay more than the minimum

That's interesting, how come? I have a Tesco credit card (it's my first) and my credit limit is only £250. As I get points (though not very many!) for spending on the card, I try to use it as much as I can. To do that, I would have to repay early in order to spend more during the month. Would you not recommend this approach?

matttye

salgoud wrote: »

Hey all! Quick question-

Is it bad to open a credit card just to use it for a reward, then close it? I noticed that Ryanair give you a free return flight within europe if you spend £100 within the first 6 months of opening your card. I already have another credit card (Tesco) that I prefer, but am tempted to open a Ryanair one just to clear the flight and close it once I've used this reward. Would that be bad for my credit rating? Alternatively, is it bad to have an idle card that you don't use once I've cleared the offer?

Thanks!




That's interesting, how come? I have a Tesco credit card (it's my first) and my credit limit is only £250. As I get points (though not very many!) for spending on the card, I try to use it as much as I can. To do that, I would have to repay early in order to spend more during the month. Would you not recommend this approach?

Having multiple or lots of short-lived accounts can show indecisiveness, but I don't think just one account will do any harm.

It would probably look better if you keep the account open afterwards but just don't use it. Idle accounts don't look bad. The only thing is keeping the account open will add to your overall available credit, so you'd need to consider closing it before applying for more credit if it's likely a lender will think you already have too much.

salgoud

matttye wrote: »

Having multiple or lots of short-lived accounts can show indecisiveness, but I don't think just one account will do any harm.

It would probably look better if you keep the account open afterwards but just don't use it. Idle accounts don't look bad. The only thing is keeping the account open will add to your overall available credit, so you'd need to consider closing it before applying for more credit if it's likely a lender will think you already have too much.

Hi Matttye,

Thanks for your answer, I really appreciate it. I may just sign up for one and keep it for a while longer before closing it then.

Have a good day!

ellietwink

Have been living in France for 9 years, back 1 year. During that time I have had no loans or mortgages. I am on the electoral roll but don't seem to have a credit rating anymore, even for a mobile phone contract. Is it just a case of waiting another 2 years? I pay bills by direct debit from bank and have never defaulted on any repayment.

mcclunyboy

I recently checked my credit score/rating on experian and had a score of 970, my brother has a score of 917 and was recently rejected a business loan (I will be opening a thread to discuss this somewhere else) but with my credit score could it be more likely that I am granted a loan?

The main difference in credit reports was I have a lower amount borrowed and I have utilised a much lower percentage of that available credit.

Nashmia

i've always had good credit rating, and never rejected for anything. i bought a tv, which i paid in installments in advance of the final date before interest is applied!

i tried to get a contract phone, iPhone 5, and I got rejected!!!

it's annoying me sooo much, because the only thing i can think of is, i tried buying it from tesco, and their system is so stupidly sensitive that they put thr flat number wrong twice, which rejected the application and affected my credit score (i think!)

i signed up for experian for the free 30 day trial to find out, because i don't know how else i can find out!!

but problem is i have to wait for a pin to arrive before i can view the report.

does anyone know of another way, preferably free which i can go about finding out how view my credit rating??

so annoying, i really wanted that phone, and found a very good deal!!

p.s. i also have a company credit card, which i use quite often for business related transactions.

they did mess up something and starting putting late fes on default and whn i complained they revered it and i was in credit which they paid me back. although it's the company that pays the balance, but late fees i had to pay to stop it.

i don't know if that affects it too!

matttye

Nashmia wrote: »

i've always had good credit rating, and never rejected for anything. i bought a tv, which i paid in installments in advance of the final date before interest is applied!

i tried to get a contract phone, iPhone 5, and I got rejected!!!

it's annoying me sooo much, because the only thing i can think of is, i tried buying it from tesco, and their system is so stupidly sensitive that they put thr flat number wrong twice, which rejected the application and affected my credit score (i think!)

i signed up for experian for the free 30 day trial to find out, because i don't know how else i can find out!!

but problem is i have to wait for a pin to arrive before i can view the report.

does anyone know of another way, preferably free which i can go about finding out how view my credit rating??

so annoying, i really wanted that phone, and found a very good deal!!

p.s. i also have a company credit card, which i use quite often for business related transactions.

they did mess up something and starting putting late fes on default and whn i complained they revered it and i was in credit which they paid me back. although it's the company that pays the balance, but late fees i had to pay to stop it.

i don't know if that affects it too!

You can sign up for free 30 day trials with Experian and Equifax, and Noddle is free for life.

Otherwise you can pay £2 to see your statutory reports with Experian and Equifax.