I need some helping clearing some of these negative factors please >>

*Kat*

The usage of your available credit indicates a higher risk = 61%

Just wondering what is a good %? I can bring this down by transferring funds from my savings acct.


You have recently opened 1 or more new credit accounts = New First Direct current account with OD, only 3mths old - how long until this isn't a neg?

The value of your highest credit limit indicates a higher risk - don't really understand this one, my OD and CC are only £500 each...hmmm

The age of your accounts indicates lenders are likely to view you as higher risk - what about this one? What age should my accounts be?

Do these really matter? If I can change any of them then I will. I want a good credit score.

Thanks for any help

[Deleted User]

The only one you can afffect, and the only one that really matters, is your credit utilisation. I would recommend keeping it around 30% or less - certainly under 50%.

The rest will be taken care of by time.

But remember, this only matters if you are looking for new credit. And your 'score' is neither here nor there. It's how potential lenders view you.

*Kat*

Deleted_User wrote: »

The only one you can afffect, and the only one that really matters, is your credit utilisation. I would recommend keeping it around 30% or less - certainly under 50%.

The rest will be taken care of by time.

But remember, this only matters if you are looking for new credit. And your 'score' is neither here nor there. It's how potential lenders view you.

I want to apply for a mortgage next year (maybe) so do you think these matter? I thought they would.

I will definitely work on the utilisation Thank you

[Deleted User]

Just keep a clean file, by using your card regularly, paying off in full each month if you can and never miss payments or go overlimit.

That will give you a solid platform for future credit. Good luck.

AndyBSG

*Kat* wrote: »

The age of your accounts indicates lenders are likely to view you as higher risk - what about this one? What age should my accounts be?

This one is all to do with how old your credit accounts are. I had a similar warning when I changed banks and closed my 11 year old current account to open a new one with a different bank

"Don't close your old accounts!
Another important factor to your credit score is the average age of your accounts. By keeping an old card open that you don't use, you add history to your report. If you were to go and close this account, your average history would be reduced thus decreasing your score."

sirwiggum

AndyBSG wrote: »

This one is all to do with how old your credit accounts are. I had a similar warning when I changed banks and closed my 11 year old current account to open a new one with a different bank

"Don't close your old accounts!
Another important factor to your credit score is the average age of your accounts. By keeping an old card open that you don't use, you add history to your report. If you were to go and close this account, your average history would be reduced thus decreasing your score."

This is a bit of a scandal, yet more shady practices by banks to keep their customers tied in.

When my fiancee applied for her mortgage, she was advised to keep her credit card clear, as it showed you weren't living off credit.
So, confusingly, a credit card shows you can handle credit, yet using it is seen as relying on it.

The whole thing really is a black art to benefit the banks.

Thriftkitten

Make sure you are currently up to date with the electoral role, I think the high risk thing could be either to do with the £500 balance... is you credit limit £500?, the amount of your available credit on the accounts you already have makes a difference too I think. If you have say a £2500 limit and you only spend £500 why not ring the card and ask them to lower the amount of the limit, that way you have less available credit and this could help. Also try not to apply for anything between now and the mortgage time.

*Kat*

AndyBSG wrote: »

This one is all to do with how old your credit accounts are. I had a similar warning when I changed banks and closed my 11 year old current account to open a new one with a different bank

"Don't close your old accounts!
Another important factor to your credit score is the average age of your accounts. By keeping an old card open that you don't use, you add history to your report. If you were to go and close this account, your average history would be reduced thus decreasing your score."

Wow. Thanks for that. I will keep my RBS one open then. I thought you were only allowed one current account? IDK why I thought that LOL

sirwiggum

Scrootum wrote: »

how does that benefit the banks?

Rather than switching to the best deal, the way that the system is set up is such that you are encouraged to stay with your current bank as it shows 'stability' on your credit file.

I'd say any mechanism to get you to stay with a company benefits that company - whether they be a utility, supermarket or bank.

*Kat*

Got a letter from my CC today saying my limit is increasing by £250, I guess that's good!

JuicyJesus

sirwiggum wrote: »

Rather than switching to the best deal, the way that the system is set up is such that you are encouraged to stay with your current bank as it shows 'stability' on your credit file.

I'd say any mechanism to get you to stay with a company benefits that company - whether they be a utility, supermarket or bank.

Or it could just be that stability looks good on a risk basis, and constantly swapping between different accounts looks bad on a risk basis. Which is true.

Is there actually anything that banks do that people won't call a scandal?