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

Experian_company_representative

Strengthening your credit history with a credit-builder style credit card as Tixy suggests can certainly help in the future. Bear in mind that your credit rating may take a temporary dip when you take out any new credit (so always space out your applications) but if you manage the card well this will soon start to benefit your credit rating.

James

ktjdavies

Thanks, I think I've been on the electoral role since Oct 2011.
My experian record shows 3 credit accounts, nothing outstanding - although other than a monthly SIM mobile contract, I have no idea what they would be. Indeed my bank account is basic with no overdraft.
I understand this is not science but do you think I'd have a better chance of getting a credit card with my bank rather than subprime firm?
Thanks very much for your help.

Sirmoanalot

Guys

I have just downloaded credit reports for my wife and I and have noticed in the 'previous searches' section that Hastings Direct and Swinton have done searches on my wife. We have never been in contact with these people and I can only assume it is because we did searches on compare websites when we were looking for car insurance. The searches were done at the same time we were looking for a new insurance.

Surely this should not be happening.

Am I right in assuming that this affects my wife's credit score?

Any advice would be grateful

AndyBSG

Sirmoanalot wrote: »

Am I right in assuming that this affects my wife's credit score?

It all depends on the type of search.

Searches for insurance quotes through comparison websites are just 'informational' searches and are not actual credit checks so don't adversely affect your credit record(emphasis on record as a credit score is a completely made up figure)

For instance, on my credit report I have credit searches which are listed by type as:

Identification: Generic Check
Quotation Insurance
Credit Report

Sirmoanalot

Thanks Andy

I will look at the report again to see if it states Generic etc.

lelafin

I only have a debit card, and have had no student loans.

I checked my credit score last year, and it said i had a 999 rating. Is this possible? Ive been wondering if there has been a mistake, is it possible to have such a good score with no credit card?

I have never had any store cards, credit cards, loans, and i am registered on the electoral register.

Tixy

lelafin wrote: »

I only have a debit card, and have had no student loans.

I checked my credit score last year, and it said i had a 999 rating. Is this possible? Ive been wondering if there has been a mistake, is it possible to have such a good score with no credit card?

I have never had any store cards, credit cards, loans, and i am registered on the electoral register.

It is possible that a credit reference agency has given (sold) you that score. In fact with no credit history and if you are on the electoral roll it is the standard score they award.

But in terms of your ability to be accepted for credit having no credit history is a big issue for many potential lenders.

Student loans do not appear on your credit file so whether or not you have those won't affect your credit score (unless you have the old style loans and you default on the repayments).

lelafin

Many thanks for the quick reply, should i get a credit card and setup a direct debit to pay it off monthly?

Is there any way i can get an accurate credit score when i don't have any credit? I do have some direct debits coming out of my account, but they are small amounts. Does this boost it at all?

Tixy

If the DDs are not for credit accounts then they won't impact on your ability to get credit. If they were for a credit account (such as a phone contract or similar) then they would likely appear your credit file with one of the 3 agencies.

Getting a credit card is a good way to start building up a positive credit history. Given your lack of credit you could possibly try your own bank (as they can see how you have managed your bank account and know most about you) or failing that you may well find you need to start with one of the subprime cards first.
These have a high interest rate so are only recommended to be used for credit building purposes, paying in full each statement.

You don't have an 'accurate' credit score. different lenders have different criteria and preferences, they look at the raw data on your credit file and application form, they never see the score that the credit reference agencies will sell to you.

AndyBSG

lelafin wrote: »

Is there any way i can get an accurate credit score when i don't have any credit?

Even if you're Gandalf the Grey there's no way of getting an accurate credit score because, like magic, they're completely made up.

You can pay Experian £15 a month to give you a credit score of 999 or you can pay me £10 a month to give you a score of 1,000,000..... My credit score is just as meaningful to HSBC, Barclays, etc as the one Experian give you... i.e not meaningful at all!