Bank internal rating tips

glenn_m

I'm looking at applying for a couple of credit products with my bank later this year (credit card and loan) so I figure it's a good idea to do what I can to improve my internal score with the bank in preparation? Whilst I can find lots of information about how general credit ratings work, I can't find as much info about how bank's internal ratings work. (Though I'd imagine it can vary from bank to bank?) I'm wondering if, aside from crediting my account regularly, any of these will help to strengthen my internal rating with the bank?

Packaged current account - I remember reading in Martin's article about credit scoring that it can be important how attractive you are to a bank/lender - they view you based on how profitable you are. By having one of these accounts with benefits for a monthly fee, is this a good way of showing the bank you're a profitable customer to them?

Paying off existing loan - I already have a small loan with my bank, which I've been paying on time every time. Does this help strengthen the rating, showing that you're capable of repaying?

Not going overdrawn - I guess this is an obvious one. But, what about dipping into an AGREED overdraft? Does this still have a negative impact, even though it's agreed/formal?

Savings account - By having a steadily increasing amount in a savings account with the same bank. Can this be a way of demonstrating you manage money well and have something to fall back on?

And when the bank scores you, is this based on one particular account you hold with them, or how you manage all the accounts you hold with them?

Thanks in advance to whoever replies, and I hope this thread can go on to give advice to others who are in search of similar answers!

YorkshireBoy

'Account throughput' also helps.

I've noticed with Halifax that my apparent internal rating has shot up (offer of guaranteed limit credit card with no CRA search [taken up] and £18K loan [ignored]) since I've been circulating my salary as well as the £1K per month necessary for each of my 3 other Reward accounts. Appreciate not everyone can afford to do that but if you have time between salary hitting and bills leaving then maybe try moving some money out and back in again?

iereboy

I think you have nailed most of the answers anyway.

Not going overdrawn.

Not bouncing DD's and SO's

Amount of days in Credit vs Amount of days in Overdraft

Amount that goes in.

Savings and investments already held.

Payments to credit cards/ loans/ mortgages held with the bank being paid on time.

Also - your Experian activity and or other CRAs- raw data is fed to most banks once a month so they know what you are applying for and what payments you are currently making as long as that lender reports to the CRA - which most do...

simax

iereboy wrote: »

I think you have nailed most of the answers anyway.

Not going overdrawn.

Not bouncing DD's and SO's

Amount of days in Credit vs Amount of days in Overdraft

Amount that goes in.

Savings and investments already held.

Payments to credit cards/ loans/ mortgages held with the bank being paid on time.

Also - your Experian activity and or other CRAs- raw data is fed to most banks once a month so they know what you are applying for and what payments you are currently making as long as that lender reports to the CRA - which most do...

These days, it's the CRA data that decides. You could turn over £1500 a month, never be O/D, stick 50% of your income in savings but still not build an internal rating due the CRA data, so it's hardly worth trying. (Thanks to an ex obtaining credit in my name and defaulting on it and getting a CCJ in my name to boot my rating is screwed for at least another 4 years)

iereboy

I know but the way you run you account with your bank still has a lot to do with your Internal Ratings.

jonesMUFCforever

iereboy wrote: »

I know but the way you run you account with your bank still has a lot to do with your Internal Ratings.

I agree but any application for credit such as a credit card or loan will automatically generate a credit search - anything bad on there will !!!!!! you up in any case even if you have run your bank account in an angelical fashion.

jonesMUFCforever

THEMOUND wrote: »

LOL actually its also useful to know a few people who can press the rights buttons...internally :D:D:D:D:D:D:D:D:D

Makes no difference - a credit policy decline or adverse credit information means the info cannot be overridden.