Credit rating

jim11115

If I am never going to be able to get a mortgage, not willing to sell my soul to get a car on credit and only use a debit card - is there any point in worrying about my credit rating?

Just wondering what others think - personally I could not give a damn.

QuirkyChemistry

What about if you want a contract phone? Or a cashback credit card? Some jobs also require a credit check before you can start working. It can't do any harm to have a good credit rating especially as a bad one is normally developed through missing payments etc. that incur extra charges.

Voyager2002

I agree with both posts. It is convenient and can be profitable to be able to use any number of products that require a credit check. However, a poor credit rating is not the end of the world. When my credit rating was shot to pieces I did not use any sleep about it, and got on with my life and in due course rebuilt it.

jim11115

:beer: I would never get a contract mobile phone. I only use a pay as you go phone. I get a very good deal on my home phone anyway. I would never have another credit card again. I only use a debit card, that way I only spend what I have, as I don't earn a lot I find the best way to manage my money is to have as little money as possible going out in direct debits etc. The best advice I can give is to always keep at least a months salary in your account, don't make any purchases until the end of the month - then you are spending last months money. Always keep enough for emergencies. If you don't control your money - then plenty of others will. Steer clear of book clubs, mail order catalogues and other nonsense. I have seen people end up with so many direct debits draining their account that they could barely get through the month. If you are not getting involved in this - you won't have to worry about your credit rating. As for Orwellian employers checking your credit - stay away, they will want your soul next.

YorkshireBoy

QuirkyChemistry wrote: »

Some jobs also require a credit check before you can start working.

But organisations carying out such searches are looking for the absence of 'bad' data, not the presence of 'good' data.

jim11115

I agree with your reply YorkshireBoy, but what difference will it make that I paid my electricity bill a month late? It might be taken that I can't manage my money - but I kept the money in the bank for another month and will get interest for a month. If these companies are so concerned about "good credit" and money management - ask them how they handle their own finances. Do they avoid taxes, pay their small contractors on time?

If you can live without credit (or debt as I call it) then it won't matter to me what they find. I know this is unlikely to be the case if you want to buy a house, but if you have to rent as I do (with my salary I will never get a mortgage) the easiest and most stress free way to live is simply not to get into debt. If I can't get through the month without borrowing, then I have a serious problem with either my income, outgoings or both. Always bear in mind, these companies are not lending you money or giving credit because of their concern for your wellbeing - it's simply because your are a source of income for them over the long term.

Rabiddog_2

How can you be so certain that you will NEVer need credit? there could be some unforeseen emergency that requires it? Also if you travel or buy thing s on the internet a credit card is a positive asset, not a negative.. car hire too, virtually impossible without a credit card. yes they do make a profit, but ..as long as you know..

exel1966

jim11115 wrote: »

If I am never going to be able to get a mortgage, not willing to sell my soul to get a car on credit and only use a debit card - is there any point in worrying about my credit rating?

Just wondering what others think - personally I could not give a damn.

Then why post a pointless thread looking for opinions ? You obviously do give a damn !

_Andy_

Not sure what the point of the thread is. You ask for opinions then shoot the responses down. If you're not worried about your credit rating, that's fine, bully for you.

jim11115

The reason why I posted this thread is because I work with a lot of people who spent most of their free time working overtime, planning overtime or begging for it. They have constantly justified this as necessary to keep up their standard of living, a standard of living which is financed mostly by being in debt and then maintaining that debt. I wondered what others thought of my own attitude - that's the reason for the post. I don't condemn people for having credit whatever their reasons, I am just amazed that mature adults of my age bracket (40's) cannot see beyond the lifestyle advertising etc and get into a situation where most of their hard earned cash goes to finance debt that they never needed (for the most part) to have. I get bombarded daily in my inbox with ads for "check your credit rating" and offers for loans. I have never taken up any of these offers myself, and feel sorry for those who get taken by these people who prey on the insecurities of others. I am not coming from a "holier than thou" position here, when I was younger I was on this treadmill myself - so I am speaking from experience. At this point having a zero credit rating is not going to make any difference to my life. I can see that having a good credit rating may be a bonus in an emergency when you need money quickly - but this is why I make the point of having something in the bank for such emergencies, at least a months salary if possible. I just hate seeing people brainwashed by the media and advertising into thinking that these things are so important and that they can't enjoy life without them. Don't make the mistake of thinking that it will give you any security - if they pull the plug on the loans or cards and demand payment you will soon know what trouble is. If you are going to participate in the whole financial thing - at least try and make sure are that you are the one in control.

_Andy_

Thanks for the clarification - I think you raise some good points in the last post.

Certainly Equifax etc do well out of getting people to pay to see a 'credit rating' which is more or less meaningless since every company scores differently.