confused by corporate card

guyconfused

Hi. I am a 24 year old professional who has just realised that he might want to apply for a mortgage and some point, and have hence checked my credit rating. I have come back with a terrible result, which can't be related to credit cards (since I don't have one) and the only credit relationship I've ever had is my phone which I pay by direct debit every month.

I think the problem may be that I have a corporate card with American Express to pay for work expenses, which I always transfer funds to once they are received from my employer. This often leaves the account at neutral levels well before month end.

Does anyone know whether this might be the reason? And, if so, what can I do to rectify this (beyond paying Amex later, which I don't want to do)?

jonesMUFCforever

Have you considered asking your bank for a credit card for personal use? If used correctly this would improve your credit rating along with being on electoral roll etc.

marty2be2000

Only having a mobile contract is the most likely cause. Lack of credit history can be a big negative since it does not show an ability to manage credit.

The corporate card will not have an impact on your credit rating at all, since it is not listed as a credit account. If you are transfering the funds from a current account, then the balances of these are not reported to the CRAs either, so will have no impact.

As long as you are on the electoral role and been at your current address a reasonable time then I would apply for a credit card for your own use. Use this instead of cash for your own purchases, and then the key thing is to pay the balance in full each month.

reclusive46

marty2be2000 wrote: »

The corporate card will not have an impact on your credit rating at all, since it is not listed as a credit account. If you are transfering the funds from a current account, then the balances of these are not reported to the CRAs either, so will have no impact.

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As he has the corporate card where the holder is responsible to pay (I.e The OP) it will but I believe Amex only reports business/corporate cards to Equifax.

InsideInsurance

If you've seen your credit report it will show who's reporting on you and the score will also give basic reasons as to why it is what it is.

From what you say it may well be a lack of history that is the problem and not anything else. Despite you being responsible for the initial repayment of the AmEx card I do not believe it shows on your CRA file, when I used to have one it certainly didnt