Question about credit reports

creditguy

I've looked around the site and found out that credit scores are meaningless. Its based on a companies profile of the customers they want. Its about profit, not risk. I've signed up to experian and equifax for 30 day free trials. I had a default and 4 late payments so I phoned the company and told them that as I hadn't missed a payment on any other credit agreement and I could supply them with my credit report to prove this I don't believe those late payments and the default were representative of my current situation. They took my number, called me back and agreed to remove the default and late payments.

Now my credit report is exemplary. I have the highest rating you can get but I understand that I still may be refused credit. My question is, how can I play the system so I make sure I get credit, is it a good idea to have a few late payments, shoudl I get a credit card and purposely miss a payment so I look more risk and they accept me or what? Anyone have any tips?

Reesy1981

Its a bad idea to have 1 late payment, let alone a few.

Why do you want to try and play the system? Why so desperate to get credit?

moronic50

don't miss a payment, as a rule that simply counts against you. As you said it's about profit and the profit lies in interest. So to "improve" your credit score would involve spending a bit, letting roll over so it accumulates interest and then paying it off. That way the bank has made some money and this should (in theory) make you more appealing. You are effectively paying the banks to lend you more money!

Another option I've heard off is instead of paying off the balance in full at the end of the month, pay it off in say 3 or 4 separate payments throughout the month. The theory is that this shows the banks that you are responsible with your money and can therefore be trusted with a higher credit limit. This also avoids paying any interest.

At the end of the day it's a mugs game and my advice is if you can avoid using a credit card and use debit then do (unless your planning on doing something like Stoozing!)

Tixy

No - missing a payment on a new card would not be a good thing to do at all, late payments will never help you get new credit.

When people say the score is meaningless we mean that its only based on your credit history which is only one of the things that lenders take into account. Have a clean credit history is important, but so are other things.

What new credit product are you wanting to get?

The other things a potential lender will consider include -
What existing credit facilities have you got?
Are you on the electoral roll?
Are you associated with anyone else financially (on your credit reports) - if so then their files will affect you.
How long have you been in your current address & job (not that these are things you can alter but a lender will consider these when calculating the risk of lending to you)
Do you have an overdraft? do you use it every month? do you get out of it every month?
Do you have credit cards? do you pay the minimum payment or more each month? do you pay them off in full each month