Equifax score only 300

magicmaria

Hi this is my first post (sorry if its in the wrong place) yesterday I checked out my credit score using Martins recommendation site . Well it was only 300 well below the average so i signed up and checked my file with equifax. All accounts on there were showing all payments up todate with no arrears (APART from 1) my catalogue company showed 2 late payments in the past 6 months, purley an oversight on my behalf as I paid the balance in full last month. How long will this affect my low scoring as it now says my risk is WARNING on the file for late payments, although I have never been late with anything else. Any advice and help would be greatly appreciated. Sorry if its long winded hope I make sense.

$17mma

Hello Magicmaria

I was in the same situation as you at one point.. all up to date payments no defautls or CCJ's and still my credit score was low. But when I read Martins Credit Rating Article

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1101485056,23650,

And what I did not relaise was that whilst I had no defaults or late payments I had access to too much credit. By way of explanation I had accounts still active, creditors look at this as a credit risk because we have access to too much credit... see Martins comments below:

"Cancel unused credit cards, debts and accounts. Access to too much credit, even if it isn't used, can be a problem. If you have a range of unused credit cards, cancel most of them; this lowers your available credit and should help (see full article, Cancel Old Cards (and which to keep)). "


So what I had to do was close some of the accounts that I did not need e.g store cards that offered me no rewards, credit cards no longer using and interest free period had expired etc.

I kept open accounts that I new I would need and use again e.g Next for kids clothing etc.

Maybe you need to re evaluate the accounts that you do have and close the ones that are doing nothing for you.

I thought that leaving accounts open as a buffer incase I needed to use them was a good thing but it works against you when a company credit scores you even if you have never defaulted.

In addition this may also be a reason, see Martins comments below:

"For example, credit card companies may reject applicants simply because their history predicts they will repay their debts in full every month and that isn’t profitable."

Hope this has helped..

magicmaria

Hi

Thank you for replying, yes I have a few accounts activie that I don't use anymore I thought this would make my file look better - thank you for the advice I will cancel all old accounts today.