No debt but low credit score!

MrScotchpie

Hi

I'm thinking of a mid-life career change into finance and some of the jobs require you to have a healthy credit score (afterall you cannot advise businesses how to invest if you cannot even manage your own finances).

With this in mind I looked at my credit score today. It is 603, which is a bit on the low side, most jobs I've seen require a 700 score as minimum.

The problem is I cannot understand how it is so low as I have no loans, apart from the mortgage which I am up to date on and never missed, I have no credit cards, by choice, and I pay all my bills on time with cash, obviously. I also have 4 bank accounts with healthy balances. One does have an agreed overdraft of £300 which if I do use is only by about £50, £100 tops, and is always repaid the very next day.

So surely I should have a clean credit history which is exactly what my credit report showed, in fact there wasn't really much to read.

So why is my score so low, and more importantly thinking about my job search, how can I improve it when everything I'm doing now should be enough.

MrsTUS

I know you don't want a credit card, but could you apply for one - something that offers rewards of some description - and then use it to pay for your petrol and then pay it off immediately afterwards? That would help improve your credit score.

When we're debt free, we'll be keeping a credit card to maintain our credit score/file so that we can apply for a mortgage without difficulties...

InDeepDebt

Is it a myth or true that actually having credit cards but maintaining them is a way of building up your score? So, the fact that you have no credit cards means that, although you haven't been marked down, you haven't been marked up either - if that makes sense.

I'd see who you want to apply to, see what score they require and if you don't fit, mention in your covering letter that goes with the CV that your credit score is low because you are so good at managing your finances that you don't see the need for credit cards. You may get a human reading it who cuts through the red tape (for once).

Jim

bottleofred

People really do (in my opinion) get too hung up on credit scores. All lenders have their own criteria and if you meet that criteria during a credit application, will be offered a credit facility. Many things help to improve peoples credit scores and they include, being on the electoral role, having a regular income, being married &/or having dependents and having a history of paying off other loans etc. As already suggested, get a credit card, use it every month and settle it in full. After a minimum period of 6 months, this will help to improve your credit rating and make you a more attractive proposition for lenders.