Improving credit score, Mobile phone contract

Rayzer88

Hi everyone i hope you can help me

Im looking for a loan to pay off a current loan balance on my car, with the remainder of the loan to buy a new car.

My credit score is 802 (fair) and i am looking to get my score above 880. On my report are 3 open accounts, all satisfactory with no missed payments: The original car loan, and 2 contract phones.

One of the contract phones is my partners, as she could not obtain one in her own name at the time. It is £56 per month, and mine is £26. I am now able to transfer the phone over to her, in her name and i was wondering if i do this, would it be removed from my credit report and would it have a significant impact on my credit score?

Also would there be a significant increase (hopefully) on my score if i were to also pay out the remainder of my phone contract, thus leaving just the car loan on the report?

Thanks very much in advance

Tixy

Why do you want to get you score above a particular figure? The score is not really relevant to getting new credit, potential lenders don't see that score they see the actual detailed data on your credit file which they would assess along with other information about you compared to their own criteria to decide whether or not to lend.

No lender is magically going to lend because on of the credit reference agencies has given you a 'score' of 880 rather than 802.

Have you spoken to the mobile phone company to see if they will allow the contract to be changed to be in her name? it would be unusual for them to do this. If they did then the past history wouldn't be removed from your file, as the account was yours at that point, all it would show is that the account had been closed and settled. Its unlikely to have much impact on your ability to get credit.

Its also unlikely to have an impact if you closed your other mobile account. Having mobile contracts on your credit file is not likely to put a potential loan lender off, unless you have missed payments. And if you have missed payments on those mobile contracts they will still be visible and still likely to be taken into account by any potential lender.

Zack1

Firstly, ignore credit scores! They are useless numbers. Getting above 880 means nothing if you can't get credit from X, Y or Z - and it's that which is important. You could be scored as 400 but if X want to give you credit then that's what matters! Your credit score means nothing. Out of curiosity, I got mine and I'm rated ~800, which for a student is absolutely ridiculous!

As for the transfer, I'd imagine it would be marked as "settled" just like any other account that is no longer active on your file, and stay there for 6 years - Can't see it just disappearing overnight as it's a part of your history.

Varying stories on how much mobile phone contracts (and other utility bills) actually count - but banks will care more about your conduct with credit cards, current accounts and the like. Paying out the rest of your contract would make very little difference IMO, and if I'm right you are doing it just to get it off your report - so you won't be using the final X months... if I've understood that right, that's a complete waste of money - you might as well leave it running, pay it on time each month and use it as and when you need to (assuming you have another number you are going to use anyway)

Edit: Sorry, Tixy beat me to it!!

Rayzer88

Thanks both for your replies

I was hoping to gain a better score as i have had 2 loans declined. I thought my history would be good as i've never missed a payment on the loan, or phones..or anything else in my life for that matter.

My current score puts me in the bracket of "fair" and apparently above 880 is regarded as good. I've had a look on moneysupermarket.com's comparison and when i check for loans under "fair profile" the interest is over double than that with a good profile..hence im looking to improve my score and was hoping settling the phone contracts would help

Tixy

If you've no missed payments on anything then its unlikely your credit history is the problem. So you need to look at other reasons why you might have been declined.

Who did you apply to for the 2 loans?
How much did you ask for?
What is the current level of your debts?
How much do you earn?

Rayzer88

I think one problem may be that i cant describe that some of the loan will pay off my current one.

The first loan i applied for, i put the purpose as car loan and was declined (presumably due to the fact there would be 2 loans on my report)

The second loan, i put the purpose as consolidation, hoping that they would realise that the loan on my report would be paid off with the loan i was applying for.

I applied for £4000 with just over £2000 left on the current loan account (settlement figure around £1700). I earn appox. 1400 p/m leaving me with about £500 p/m to myself after all bills (including the current loan and shopping etc)

Rayzer88

I've just realised that i didn't ring the company i have my loan with when i moved out of my parents house. The address they still have is my parents one...is this likely to have an effect and if so, how much?

drbesty

I'd say that'd knock your credit score down be at least 60.........

Rayzer88

In that case i'll be on the phone first thing tomorrow morning!

Zack1

drbesty wrote: »

I'd say that'd knock your credit score down be at least 60.........

:rotfl:

Naaa, only by 50 surely?

Rayzer88 wrote: »

I've just realised that i didn't ring the company i have my loan with when i moved out of my parents house. The address they still have is my parents one...is this likely to have an effect and if so, how much?

Just checking, but are you on the electoral roll at your new/current house? I'm assuming with them giving you such a high "score" that you are, but if you're not then it'll be pretty hard to get anything

Rayzer88

I'm on the electoral register (thankfully!)

As i far as i can see, the only irregularities i can see are the ones with the loan and (i think this is a biggie!) i also realised that my bank account is also still registered at my parents address

It seems i am my own worst enemy! If the addresses are indeed costing me around 60 points a piece then im down by about 120 points! I'm going to rectify both tomorrow, and so within a month or so i could potentially up to around 922?