Why is my credit score so low?

Terrasaw

Hi,

Having Looked @ my Credit report for the first time It's a shocking 116 :mad: but how can this be? I applied for an American Express card last month, got approved & unfortuanetly made a late payment, I understand that can have an Effect on your credit report but surely not that much.....From 1000 - 116? I would of had to have a good Credit Score to obtain an Amex..

My current account on my report file says ' 1 Payment late ' with a Balance of zero, so what payment is that then? I don't have an overdraft, I even Logged onto Internet Banking to check my statement, nothing!! so what ever that was has decreased my credit score

Everything else on my report is fine, I expected my credit score to be over 900 as I'm only a student, No Mortgage or such to pay ..

latecomer

what other credit do you have? If you dont have anything else then the only thing you could be judged on is your credit card and that doesn't look good.

Terrasaw

latecomer wrote: »

what other credit do you have? If you dont have anything else then the only thing you could be judged on is your credit card and that doesn't look good.

I only have o2 & American Express on my profile..
I only hope this does not prevent me from getting a student Loan

anotherpaul_2

Unless you need more credit for something, the score is unimportant. Use the card properly for a while and things will improve. I think it's pretty common for students to have a poor rating.

As latecomer said, a lack of experience with credit counts against you. It'll improve.

Merlinexcalibur

Other factors may also be significant. Where you live. Yep, it can be like car insurance. Post codes play a role, too. Other things. Not just what you have missed payments on.

Incidentally, I have never heard of the Student Loans Company turning down anyone because of a poor credit record. Conversely, you don't start paying a SL back until you reach a certain income level per month. But I may be telling you things you already know ... I am just assuming you meant a student loan as in SLC?

It would defeat the whole object of a student loan (if from SLC) if adverse credit did affect your viability. Or did you mean one from a bank?

You may also find that in today's volatile financial climate that credit ratings are being affected.

Terrasaw

anotherpaul wrote: »

Unless you need more credit for something, the score is unimportant. Use the card properly for a while and things will improve. I think it's pretty common for students to have a poor rating.

As latecomer said, a lack of experience with credit counts against you. It'll improve.

Ooo rite, I really hope that's the case.

Thanks

Merlinexcalibur

And, what AP said. If you are a student now then, clearly, you will automatically have a lower credit rating than, say, someone in full time employment. That is if you are a student now, of course. But I am just assuming that on what you posted.

Merlinexcalibur

And it may also depend on which one you got your credit report from? Experian for example ... Anyway, you've had enough answers for now.

Terrasaw

Thank you for all your quick responses, Great Answers

I'm a college Student now but attending uni this year, I thought SLC would do checks Etc...

I got my credit report from Experian..Got another 1 from another which told me my credit score was 999 lol but I heard Experian is more Accurate than others

Thanks

exel1966

Terrasaw wrote: »

Hi,

Having Looked @ my Credit report for the first time It's a shocking 116 :mad: but how can this be? I applied for an American Express card last month, got approved & unfortuanetly made a late payment, I understand that can have an Effect on your credit report but surely not that much.....From 1000 - 116? I would of had to have a good Credit Score to obtain an Amex..

My current account on my report file says ' 1 Payment late ' with a Balance of zero, so what payment is that then? I don't have an overdraft, I even Logged onto Internet Banking to check my statement, nothing!! so what ever that was has decreased my credit score

Everything else on my report is fine, I expected my credit score to be over 900 as I'm only a student, No Mortgage or such to pay ..

A good credit rating is not an automatic right. You start at the bottom and then have to earn a credit rating by displaying your credit worthiness over time. As for the three digit score of 116, it's meaningless, just as a score of 999 is. All companies have differing lending criteria and base their decisions upon that, not a three digit score based upon the average of the CRA's customers.
You also do not get marked for late payments in most cases, but you do for missing payments. I take it you have now paid ? Set up a Direct Debit, you'll never have a late payment again.

A few basic ways to improve your rating, there are dozens more :

Be on the electoral role.
Don't apply for credit too often.
Don't have too much available credit.
Don't have a too high percentage of used credit against available credit.
Don't miss payments/default, it will cost you dear in the long run.
Ensure the info displayed by CRA's is correct.

anotherpaul_2

I doubt that student loans are credit checked (though maybe they do identity check them). You'll not have a problem with getting one. And they don't appear on your credit history either.