Improve my credit rating!

d_pipa

On Experian, it states that my credit rating is 'fair'.

I assume with this, I won't get loan with the 'fair' rating?

I have became employed last week and will receive about £1600 per month. At the moment I have got two overdrafts with two banks, £1500 each (£3000 in total). I plan to get rid of overdrafts which would take me about three months. Will my credit rating become 'good' or 'excellent' after this?

What are your advices with improving my credit rating? Would I able to get a loan after I get rid of my overdrafts?

Many thanks!
Dean

BugsyBrowne

d_pipa wrote: »

On Experian, it states that my credit rating is 'fair'.

I assume with this, I won't get loan with the 'fair' rating?

I have became employed last week and will receive about £1600 per month. At the moment I have got two overdrafts with two banks, £1500 each (£3000 in total). I plan to get rid of overdrafts which would take me about three months. Will my credit rating become 'good' or 'excellent' after this?

What are your advices with improving my credit rating? Would I able to get a loan after I get rid of my overdrafts?

Many thanks!
Dean

You need no missed/late payment for a good couple of years, a debt no higher then say 35% of your total salary, stability with your bank and credit card provider, no searches on your credit file, available credit just above what you owe, get a current account with your wages going in and before long the bank will PRE approve you for credit.

Remember experian have rated you as fair but they don't lend money so take your fair rating with a pinch of salt.

Credit scores from LENDERS are computer generated therefore private to the customer and always will be, so knowing your true overall credit score isint going to happen, lenders credit scores might work 1-10 with 6 being a referral
And 7 and over an automatic acceptance we just don't know.

giblet10

Here's my recent experience with Experian (I check it daily, long story...)

- Was 'Excellent'
- Then I hit the apply button too many times so it dropped to 'Good'
- Then my new credit card and current account with OD started being reported and it dropped to 'Fair'
- Then I added myself back to Electoral Roll and it went back to 'Good'

At the moment it states two positives (long history on most of my accounts and low credit utilisation) and two negs (recent account opening and high number of recent searched).

So, my take is that it'll go back to Excellent shortly as the negs are both time dependent and there's nothing I can do but wait...

But, as BugsyBrowne says, Experian don't lend so take it with a pinch of salt - I'm sure it's a rough guide but some lenders don't do Excellent preferring higher risk with higher interest rates etc etc

rb10

BugsyBrowne wrote: »

You need no missed/late payment for a good couple of years, a debt no higher then say 35% of your total salary, stability with your bank and credit card provider, no searches on your credit file, available credit just above what you owe, get a current account with your wages going in and before long the bank will PRE approve you for credit.

Whilst what you state there is highly desirable, you don't need all of that to be pre-approved for credit products. A current account with a reasonable turnover and no/limited late payments should do it.

BugsyBrowne wrote: »

Remember experian have rated you as fair but they don't lend money so take your fair rating with a pinch of salt.

No, but they do give your score to prospective lenders, so their view on you is relevant.

BugsyBrowne

rb10 wrote: »

Whilst what you state there is highly desirable, you don't need all of that to be pre-approved for credit products. A current account with a reasonable turnover and no/limited late payments should do it.



No, but they do give your score to prospective lenders, so their view on you is relevant.

Well hopefully the unemployed with their catalogues and 999 credit scores should have no worries then as their score is that relevant.

steve1980

rb10 wrote: »

No, but they do give your score to prospective lenders, so their view on you is relevant.

No they don't. The lenders use their own score, not the randomly generated number that Experian, Equifax, CallCredit or anyone else provides.

YorkshireBoy

steve1980 wrote: »

No they don't.

Whilst they may not give lenders the same score they give individuals, there are some lenders that take 'a score' from the CRAs. M&S is one such lender...

M&S_guide_to_credit_scoring wrote:

Sometimes scores are calculated by a Credit Reference Agency and we may use these in our assessment.

http://money.marksandspencer.com/pdf/CreditScoring.pdf

steve1980

YorkshireBoy wrote: »

Whilst they may not give lenders the same score they give individuals, there are some lenders that take 'a score' from the CRAs. M&S is one such lender...

Oh God. Watch out for the "I've got a 999 credit score and I wasn't accepted" threads to start appearing.

BugsyBrowne

YorkshireBoy wrote: »

Whilst they may not give lenders the same score they give individuals, there are some lenders that take 'a score' from the CRAs. M&S is one such lender...

May use them in other words never have and they Never would, no way would the likes of M&S take in account applicants own credit score on experian.

skooldaze

Whilst we are on this theme.

My trial period is about to expire which I will cancel.

I take it they have some system to know that you can't apply again with another debit / credit card?

Experian_company_representative

Yes, many lenders use Experian scoring tools to build and maintain their scorecards.

Importantly, the score you can get from us as a consumer only rates your credit report data. Lenders' scores incorporate their own internal data plus the information on your application form.

You may not know this but Experian was the first company to develop and sell credit scoring systems to UK lenders in the 1980s, and we continue to support many high street lenders' credit underwriting processes with our data and tools.

I'm afraid that people who imply that Experian's credit scores are meaningless because we are not a lender are not particularly well informed.

The average Experian Credit Score (our credit report score for consumers) rose to 783 in January from 768. Not many people actually get 999, but even top scorers can be refused credit if other data doesn't stack up. I think most people get that.

James Jones