Your Credit Rating: How it works and How to improve it Discussion Area

Call_Centre_Monkey

One thing I have not seen noted thus far is that I understand your credit file can be affected by the types of transactions you conduct on your credit card. for instance, withdrawing cash regularly will have a negative effect (even if you pay off your card in full). I guess it shows poor liquidity if you need to withdraw cash from a credit card, so therefore you could be seen as more of a risk to the bank.

file_wizzard

Call_Centre_Monkey wrote: »

One thing I have not seen noted thus far is that I understand your credit file can be affected by the types of transactions you conduct on your credit card. for instance, withdrawing cash regularly will have a negative effect (even if you pay off your card in full). I guess it shows poor liquidity if you need to withdraw cash from a credit card, so therefore you could be seen as more of a risk to the bank.

Your “credit file” will not be directly affected by the type of transactions you undertake as the only transactional data reported is normally credit limit, outstanding balanace and payment history.

However you are correct that as far as your bank / CC provider is concerned cash advances are seen as a sign of poor financial management, and this will certainly have a negative impact on their own internal “behavioural scoring” which they will use when determining credit limits and offers of additional products.

Call_Centre_Monkey

file_wizzard wrote: »

Your “credit file” will not be directly affected by the type of transactions you undertake as the only transactional data reported is normally credit limit, outstanding balanace and payment history.

However you are correct that as far as your bank / CC provider is concerned cash advances are seen as a sign of poor financial management, and this will certainly have a negative impact on their own internal “behavioural scoring” which they will use when determining credit limits and offers of additional products.

You're not wrong.

ratttyo

This adds up for me now. Ive had a Barclaycard for 5years and 6 months ago they lowered the limit. Ive spent alot of money on the card and used it alot for funding a spread betting account I have which is classed as a cash advance. The limit was only decreased by 1000 pounds but still I could not understand why this had been done. I now use Debit cards for this type of transactions.

Dramsay_2

jay78 wrote: »

Only Barclays can remove it. Have you asked them?

Only the person in the call centre who claimed that they were not able to do that.
May try and write to the head office...

steffi1987

Chelsea_Boy wrote: »

anniecave, thanks for your reply.

On the day I moved I phoned through the meter reading to BG on a special number dedicated for people moving, the bill that I was sent (£1.69cr) was as a result of that reading. This bill was sent to my new address & stated that it was for electricity used at my old address so they did have my forwarding address.

I did phone BG yesterday (Sat) & spoke to customer services, but they were unable to access my account fully because the account is technically closed, so they were not able to tell me exactly what the £17 is for. They claim that several reminders were sent to my NEW address! To me this is BS as I am not the type of person who ignores final reminders. They were also able to tell me that the meter was read by BG in Feb 05 & again in Feb 06, three months after I moved out. I was told that the debt was with their debt collection agency & I would have to phone them on Monday in order to settle the debt.

british gas did exactly the same to me i left a property gave them a final meter reading. Couple of months later checked my credit history and was defaulted for a bill of £69 which was clearly not mine as it was dated after i had moved out. They argued saying they had sent reminders to my new addresse (they hadnt) 20 advisors later n alot of crying it was removed and a letter of appology was sent. Dont let them get away with it

steffi1987

just a quick question really i previously defaulted on two contract phones i had two years ago these were paid off and marked as satisfied. The only thing i have tried to get was my student overdraft when i started uni a year ago i was refused and have not tried since. I was going to apply for a credit card to try re-build my credit but does anyone know how long i should wait really before trying to get one.

robertb17

steffi1987 wrote: »

just a quick question really i previously defaulted on two contract phones i had two years ago these were paid off and marked as satisfied. The only thing i have tried to get was my student overdraft when i started uni a year ago i was refused and have not tried since. I was going to apply for a credit card to try re-build my credit but does anyone know how long i should wait really before trying to get one.

Hi steffi
i m in kind of similar position have no credit history so its seen as bad as bad credit history but keep applying for cards and getting rejected will damage your rating

I ve been advised by people on this site to apply for credit on catalogues obv you will pay more but say, as long as you buy goods less £100 and pay off as soon as you are supposed you are effectively creating good history which will help for future credit

its worked for people on here so it could be worth a try

hope this helps

good luck

steffi1987

robertb17 wrote: »

Hi steffi
i m in kind of similar position have no credit history so its seen as bad as bad credit history but keep applying for cards and getting rejected will damage your rating

I ve been advised by people on this site to apply for credit on catalogues obv you will pay more but say, as long as you buy goods less £100 and pay off as soon as you are supposed you are effectively creating good history which will help for future credit

its worked for people on here so it could be worth a try

hope this helps

good luck

Yeah thats why i havent bothered to try to get credit at the mo as i do not want to leave footprints. Its not that i essentially need credit at the mo im a student nurse and im only 20 so my income cant be put forward for a mortgage till i qualify and there is nothing i need on credit, but its just for the future when i do qualify and i do want to buy a house. It annoys me cause my ex somehow managed to gain credit in my name by gettin one of thoes contract phones that you see on the back of magazines when i found out i rang the company straight up and explained what had happened i then began to pay the bill back month by month but my only income was my bursary (£500 a month crap) and not just that as a student nurse its very difficult to have a part time job as your only supposed to work during holidays or i could have the bursary took off me. Anyway i rang the next month to pay more off and they had sold it to a debt collection agency they claimed they had sent letters telling me this (no they hadnt) so im now trying to get them to prove this by sending me copies of this suppossed letter cause i heard if there filing aint up to date it has to be removed. Enough of my ramblings if you manage to get any catalogues let me know which ones hope it goes ok for you thanks for the advice.

robertb17

i first tried littlewoods on line

they accepted me straight away and got limit of £750

like you i m studying for nursing in sept
would like card for emergencies and to build a good credit rating

as don t really need credit at mo but in couple years time will be looking at mortgages n stuff

so good luck with that - do make sure you re on electoral register as don t think they did credit check just checked my address details

good luck