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

boo_star

DCFC79 wrote: »

Its normal for a search to be listed on your credit file.

Dont get too fixated on the score since only you see it, lenders, banks etc see your credit file.

But my score!

I lost about 50 points in my Clearscore report this month because I closed a current account (switched it actually).

As if a lender is going to give two figs about me closing an unused current account...

MABLE

I applied for a new current account about 3 weeks ago without a overdraft facility and then applied last week for a Nationwide BS credit card because of the promo deals for new customers and to my surprise Experian lowered by credit score with them by 91 points.

I suppose this is because of two hard searches in a short period of time. However my credit report is spotless and that is my main concern not their fictional credit score.

creative2013

I have 3 credit cards that have defaulted nearly six years ago. I set up individual payment plans with each company to pay off the debt. Interest / fees etc were stopped. Two of the accounts, HSBC and MBNA/Virgin Money showed and continue show the accounts in Default and no mention of the payments being made, even tho payments have been made monthly over the last 6 years, the third, Barclaycard shows ' arrangement to pay' / the amount paid each month and ' account up to date. Should they all show ' arrangement to pay ' instead of 'Default'. each account has changed hands several times with payments being maintained as set up originally.

Lmtlmt

Hello.
I am trying to inprove my credit file after a bankruptcy’s in Jan 14, discharged in Jan 15 (3 years).

I have a credit card which I use for petrol and pay off each month, my wages get
Paid into my bank and the Vodafone bill leaves there each month.

The rest of my wages are trabsferred to my wife’s account where the other bills leave from (no financial link with us).

My own bank account is always at a relatively low balance after wage transfer for bills ( between £35-£100) and I wondered if having a lower current account balance will negatively impact my file?

I am on electoral roll etc. So think I have done everything correct but we are saving for a deposit and a mortgage so want to make sure I am doing everything I can to make my score better over ASAP.

Thanks

Lmtlmt

I think each company has different rules.
I had to write to the individual companies in my case and let them know it was not showing correctly on my report and asked them to change it with proof of agreement/case decision and it was updated but it did take around 2/3 months to show on account

shicky

Hi all,

just wanted to clear up a bit of confusion I have with the guide, it suggests to close old credit cards you don't use. However, I've also been recommended the complete opposite, to get access to as much credit as possible, yet keep utilisation below 30%.....which way around is it?

I want to get a balance transfer card so want to ensure my report looks as good as it can before doing so.

Thank you!

[Deleted User]

It's neither. You should aim for the appropriate amount of credit to your income and debt.

What is your current status of income, debt and limits?

shicky

I'm not sure I have a clear picture of what you mean? What is appropriate so I can aim for it? My income is in higher tax bracket, debts are pre-2011 student loan and a mortgage. CC debt is all 0% and 8k in total out of 13k available. Standard limit I get offered is 5k.

Credit score is 675 out of 999, think the drop is due to a late payment mark made in banking error that I'm trying to get sorted.

[Deleted User]

The drop in credit score could be due to the weather. It doesn't mean anything so ignore it.

You utilisation is quite high. You could stand to get another card - another 5k wouldn't look too much for your income, and would make your utilisation better.

However, lenders wouldn't be too concerned at the moment as your debt is at 0%, so you don't look desperate for credit.

Kc18

We are currently looking at getting our first mortgage within the next year or two (max 2 years) however after checking my credit score I am slightly concerned about my late payments on some online stores, worst of it was a about 3 years ago back when my credit score was not something I was thinking about, these are the only form of debt I have had and I am currently applying for a credit card to try to boost my score but I am concerned this is going to be a little bit to late now.