Increased credit card use and credit rating

ParaPete

Hi everyone,

I'm buying my first home and need some advise, my credit score was 903 last month but has dropped to 868 because I don't owe anyone any money (borrowing on revolving credit hasn't changed is how they put it)

I would like to buy many things for the house before I move in and also need to start using my credit card to improve my score. I'm worried that if I start using my credit card it will also negatively affect my score because it's out of the ordinary.

Can anyone advise what would be best please.

Thank you in advance.

The_Boss

You don't have a credit score. Nobody does. So you're worrying unnecessarily. The number is a pointless meaningless number.

Make sure you pay at least the minimum repayment by the due date if you use the card.. But no need to use it if you dont want to. To advise better, please let us know about the below :

How many credit cards do you have? What are the limits? How long have you had them? Any other credit agreements or mobile contracts? Any missed payments on your credit file? What's your salary?

ParaPete

The_Boss wrote: »

You don't have a credit score. Nobody does. So you're worrying unnecessarily. The number is a pointless meaningless number.

Make sure you pay at least the minimum repayment by the due date if you use the card.. But no need to use it if you dont want to. To advise better, please let us know about the below :

How many credit cards do you have? What are the limits? How long have you had them? Any other credit agreements or mobile contracts? Any missed payments on your credit file? What's your salary?

ParaPete I have a mobile contract for £26pm and a credit card that has a limit of £2250. But don't owe anything on it. I've had the credit card for 10 years and have used it very rarely. Otherwise I don't owe anything. I've had car finance and mobile contracts before. I have been excepted for a mortgage but my home will not be built until November so I don't want my score to change before I finalise the mortgage

The_Boss

ParaPete wrote: »

ParaPete I have a mobile contract for £26pm and a credit card that has a limit of £2250. But don't owe anything on it. I've had the credit card for 10 years and have used it very rarely. Otherwise I don't owe anything. I've had car finance and mobile contracts before. I have been excepted for a mortgage but my home will not be built until November so I don't want my score to change before I finalise the mortgage

I've just explained about you not having a "score" so am baffled as to why you have brought it up again.

I assume you mean accepted (offer in principle) rather than 'excepted' (i.e. refused a mortgage) so just ensure you are adhering to your credit agreements and are not paying attention to an irrelevant meaningless number.

a4a

Surely the score ParaPete is referring to is the score shown on his credit files? If the CRA's refer to it as a credit score and its not, then what is it?

The_Boss

a4a wrote: »

Surely the score ParaPete is referring to is the score shown on his credit files? If the CRA's refer to it as a credit score and its not, then what is it?

It is an "Experian credit score" or an "Equifax credit score", not a credit score whch is what people refer to it as. They also refer to this misleadingly and it catches people out. But you DO NOT have a credit score. Applications are scored, not people, no matter what Experian or Equifax may want you to believe.

a4a

If its misleading, why is it allowed?

Is this not what is looked at when companies do a soft search?

The_Boss

a4a wrote: »

If its misleading, why is it allowed?

Is this not what is looked at when companies do a soft search?

Because as above they refer to it as the Experian/Equifax credit score. It is meaningless because they are not a lender and dfiferent lenders score APPLICATIONS for different financial products differently. Plus Experian/Equifax do not take into account your salary (a key driver), time with employee etc unlike lenders, making them worthless.

Just to highlight the worthlessness, some people on here with defaults and ccjs have reported having "good" or "excellent" scores or even worse scores of 999.

a4a

Yes, understand it is not a credit score for lending purposes, but isn't it a score as applied by the CRA's based on an indication of how they think you may be rated?
Also, I am informed that it is used by companies that do a soft search, so surely it has some relevance?

The_Boss

I give up. Theres only so many ways you can say the same thing.

a4a

Sorry, I'm not being awkward but I just want to know if these scores are used when lenders do soft searches?