Contract phones and credit ratings....

capitaine

Hi guys

I'm trying to establish a better credit profile for myself.
If i have numerous low cost sim only contracts which I can comfortably manage on my wage, are 3 contracts for instance, better than just having the 1?

Or do credit providers just look at it as a single source of credit, eg all phone contracts and not a mail order catalogue and credit card etc.

Hope you guys understand what i mean. Please ignore the fact you may feel i'm wasting my money as 2 are for £5 a month which i'm fine paying if it helps overall

matttye

I don't think three would make much of a difference over one.

In theory, any account in good standing on your credit report should look good (other than payday loans - avoid at all costs).

I suggest getting a credit card and paying it off in full every month will work better than getting extra contracts.

Lenders tend to look for stability, so older lines of credit that have been ran well for a long time will look excellent to them. If you open lots of new accounts it can show 'wildness.'

izools

Absolutely as above.

You should have a small number of well maintained accounts left open for a long time. Close the two SIM Only lines that have been open the least time and leave the oldest one open. Same for bank accounts, and credit cards.

One of each, left open for as long as possible instead of "collecting" accounts or flitting between them.

capitaine

Thanks guys i'll do that