Padding out your credit report

Credit_Agency_worker

I was reading the section on taking out out a credit card to help you report. This essentialy is correct, taking a credit card out to fatten out your report is a good idea, But. Taking on any new card will have a negative effect for the first 12mths of having the card. But the major thing is the fact that you do not have to use the card, as long as the credit card company tell the agency that you wernt late with a payment, thats all that matters. whether there were any payments to be late with is not recorded. So you dont have to use the card. This works the same with catalogs littlewoods, argos, next, and most of the others but with these theres no risk of being stung with high interest charges

jonnyb

Taking on any new card will have a negative effect for the first 12mths of having the card.

Please explain this bit. I disagree with you, but am happy to be educated if I am wrong.

And not using an account may not help much, as lenders have the capacity to flag it as dormant.

Why not tell us which CRA you work for ? I work for Experian.

Credit_Agency_worker

Any Bank acc, loan, hire purchase, any account what so ever. Untill there is 12mths of monthly data a lender will look at it with suspision as they dont know if you intend to deal with the acc correctly, ie pay on time

I aint telling which one i work for, sorry.

I aint ever seen a dormant flag either

new2civvystreet

OK, I for one do not believe this 12 month thing for a second because anyone can register anonymously on an internet forum and spout off anything they want.

If you can qualify this by either stating which agency you work for or finding a link to more official regulation/documents stating what you've claimed I will be more willing to believe.

exel1966

I'd take the advice of the OP with a pinch of salt, maybe not even that much !!

Taking one credit card out will not have a significant impact on a credit rating.
Using the card is beneficial in that it shows you are capable of handling repayment on time.
An unused account can and will show as dormant at some point and the CRA's have no say over when the bank says it's dormant.

jonnyb

Credit_Agency_worker wrote: »

Any Bank acc, loan, hire purchase, any account what so ever. Untill there is 12mths of monthly data a lender will look at it with suspision as they dont know if you intend to deal with the acc correctly, ie pay on time

I aint telling which one i work for, sorry.

I aint ever seen a dormant flag either

If you won't tell us where you work, you have no credibility. If you can't spell either, I give you even less credibility.

If you don't know about dormant flags, you don't know what you are talking about. Callcredit use the code DT, Experian use the code D. Not sure about Equifax, as their website is not as helpful.

kittiej

Yes I've had D's on a dormant catalogue account on my report.

That was with Experian.

Credit_Agency_worker

Ok then being as your being slightly paranoid, i work for experian.

Flags are usually recorded on mobile phone acc's in the form of a disconection, or it being cut off
there are also flags recorded in the form of payment arrangements, volentarty termanation,

A far as credit cards/ catalogs being recorded as dormant, it must be very rare as i've never seen one in the past year of reading peoples reports. I have however seen lots of reports with accounts that have been forgotten about and the data has continued to be sent with no problems

The 12 mth rule for new accs does count, this is why when trying to build up your report you may find that you can only take a couple of acc's ie a mobile and cataloge but then carnt get a card or loan for the next 6-12 mths

And the what i said about not having to use the card is true. Check your own reports. Where on it does it say how much you repaid last month on a card? It doesnt. All it states is whether you missed the min payment or not. And the way its recorded there is not any deffinition between making the min payment and having no payment to make they are both recorded as "0" on experian reports

And finally on to my spelling. Dyslexia (spelling checked on google for the anal members out there,) effects written language not my ability to know what i'm on about. And as for coming on this forum just to spout crap? Really dear, your just not that important.

jonnyb

Status Code
Meaning 0 Payments are up to date 1 Payments are up to 1 month late 2 Payments are up to 2 months late 3 Payments are up to 3 months late 4 Payments are up to 4 months late 5 Payments are up to 5 months late 6 Payment 6 months or more late 8 The account is in default. You failed to keep to your credit agreement and have not responded satisfactorily to requests to put your account in order, so the credit agreement has ended. D The account is not being used - nothing is owed. U The lender has been unable to give the account a statement for this month. This may be at the start of the credit agreement when the lender is allowing time for the account to be set up; when the customer is waiting for goods to be delivered; when the customer has received the goods but payment is not due to start immediately; when there is a dispute over the payments due or the goods received; or when the account is not being used.

jonnyb

Dyslexia might AFFECT (not effect) spelling, but does it affect punctuation and language as well ?

Do I win a prize for pedant of the day ?

YorkshireBoy

jonnyb wrote: »

0 Payments are up to date

D The account is not being used - nothing is owed.

Much as I agree some of the OP's postings contain, shall we say, 'guesswork', he (she?) is correct when they say that if an account is not used one month a '0' is still recorded.

I have several accounts that are not used for months at a time and the status is still reported each month to Experian as a '0'...NOT a 'D'...even though I haven't actually made a payment that month.