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

Tixy

al123456 wrote: »

Hi guys,

It seems that if you want to know your score from this company they want you to sign up for another £14 or so a month.

Anyone find this or am I missing the obvious

Thanks
Al

You are right, you cannot get an equifax score for £2. You are able to sign up to a free trial (cancel within a month) which would give you one time access to the score.

But the general concensus is that paying for the score is a waste of money, it is at best only a guide to how just the data on your credit report may be viewed by a potential lender.

No potential lenders/creditors ever see that score, they see the raw data from your credit report and use that, along with the data from your application form to make a lending decision.

lovetohate92

I've taken a look at my credit file for the first time. There no problems with my rating or details. However there are three companies listed as insurance checks who do regular checks on my account. Although I have insurance now I didn't have any in previous years but checks are dated back a few years. How do I find out why these companies are checking my credit record?

Tixy

lovetohate92 wrote: »

Although I have insurance now I didn't have any in previous years but checks are dated back a few years. How do I find out why these companies are checking my credit record?

These are usually as a result of using insurance comparison sites (within the T&Cs is a term stating that this may happen/giving permission).

If you want them to stop I would imagine writing to the insurance companies and revoking the permission should stop them.

bobbywobby

My Tesco Bank credit card allows me to transfer money to a bank account such as a current account. Would transferring money to my current acount and paying it back each month be a good way to improve my credit rating or is it frowned upon in the same way as withdrawing money from a credit card using an ATM?

Tixy

bobbywobby wrote: »

My Tesco Bank credit card allows me to transfer money to a bank account such as a current account. Would transferring money to my current acount and paying it back each month be a good way to improve my credit rating or is it frowned upon in the same way as withdrawing money from a credit card using an ATM?

Would you be doing this just to be seen to be using credit? Or do you have a need for the funds?

If you are not using the card currently then it would be better (for your credit history) to simply use it for a couple of normal purchase transactions each month and then repay in full each statement.

bobbywobby

Tixy wrote: »

Would you be doing this just to be seen to be using credit? Or do you have a need for the funds?

If you are not using the card currently then it would be better (for your credit history) to simply use it for a couple of normal purchase transactions each month and then repay in full each statement.

I do not have a need for the funds, just want to make it seen as using credit and paying in back in full.

I originally got the card for the interest free period on purchases as I had some large purchases which I wanted to spread out. I have paid off the card and the interest free period is over.

My partner does the day to day spending on her credit card as she is trying to build her credit rating too, I pay the rent and bills (direct debit). All my remaining money is being saved up towards a mortgage deposit.

Tixy

My partner does the day to day spending on her credit card as she is trying to build her credit rating too, I pay the rent and bills (direct debit). All my remaining money is being saved up towards a mortgage deposit.

Presuming that Tesco report the detailed information to your credit file (and most card companies do now) then I would imagine monthly transfers would look odd, and will presumbly cost you money each month.

If you are not using any other credit is there nothing that you could buy with your card each month (or every couple of months) rather than your partner (as its not the amount you spend that is relevant, just that you are using and repaying credit).

bobbywobby

Tixy wrote: »

Presuming that Tesco report the detailed information to your credit file (and most card companies do now) then I would imagine monthly transfers would look odd, and will presumbly cost you money each month.

If you are not using any other credit is there nothing that you could buy with your card each month (or every couple of months) rather than your partner (as its not the amount you spend that is relevant, just that you are using and repaying credit).

Thanks for your help. That's what I should have asked in the first place; if it would look odd on my credit file for doing it. Also did not realise that the amount of spending is irrelevant, that being the case I think I will take your suggestion and share the day to day spending using my credit card.

Thank you again for your help!

ab3927

i have an awful credit rating was in major debt -5k but now only have £500 left to pay, trying to rebulid my credit is extremely hard as you are refused everything but today i managed to get a sim only contract for 12 months, will this improve it? And is there any other credit i could get just to improve my score i dont really even care what it is?

imoneyop

ab3927 wrote: »

i have an awful credit rating was in major debt -5k but now only have £500 left to pay, trying to rebulid my credit is extremely hard as you are refused everything but today i managed to get a sim only contract for 12 months, will this improve it? And is there any other credit i could get just to improve my score i dont really even care what it is?

Your credit score is an irrelevant made up number that no one who matters gives a toss about, but if you want to improve your credit record then take a look at the sub-prime credit card article here. The APR will be astronomical and the limit low, but if you stick a few normal spends on it each month and repay in full that won't matter. It will helo you build a history of repaying on time.