Calling all credit experts

AM1987

Morning all,

I am new to this forum and this is my first thread. I have been browsing the forum and absorbed a lot of useful information already!

I have a couple of green horn questions that I have tried searching for on the forum but to no avail, so I am hoping that you guys could help me : )

I am coming to the end of my loan. It will be paid off next month (YIPPEEE) it was an 8k car loan over 3 years. Once the loan has been fully settled and reported to Experian. I PRESUME that this will free up credit 'Amount of Available credit' thus increasing my credit score??

I currently have a Fair credit rating that I am disappointed about due to a default on an O2 contract of £38 (dispute in progress) so I am trying to rejuvenate my score.

I have 4 positive factors on my account which is a good sign:

• Significant number of settled accounts
• Borrowing on regular instalments has reduced
• usage of available credit indicates lower risk
• The age of your accounts indicates lenders are likely to view you as lower risk

I have a credit card that will be paid off next month and closed too, also my phone contract will end, will the settlement of all these agreements increase my score do you reckon?

I have currently seen negative opinions regarding the Experian report on the forum that im going to look into now, as at the moment I am seeing this as the be all end all of successfully credit applications, particular mortgages.

Thanks for all the help

AM1987

Hi All,

Found the thread regarding Experian being pointless, may aswell disregard my post. Not particularly worried about my score to be honest after reading it. Bank score you on their 'Ideal customer wish list' they do not see Experian at all.

Thanks

Fruit_and_Nut_Case

AM1987 wrote: »

Hi All,

Found the thread regarding Experian being pointless, may aswell disregard my post. Not particularly worried about my score to be honest after reading it. Bank score you on their 'Ideal customer wish list' they do not see Experian at all.

Thanks

Yess, it's all a bit of a guess by the CRAs. They don't know your salary so how can they give an accurate "score". And, as you've discovered, the potential lenders don't see these "scores" anyway.

Marcus676_2

Hello
Why are you closing your credit card? how long have you had it?

AM1987

Fruit_and_Nut_Case wrote: »

Yess, it's all a bit of a guess by the CRAs. They don't know your salary so how can they give an accurate "score". And, as you've discovered, the potential lenders don't see these "scores" anyway.

Thanks very much for your reply, I guess im just one of thousands that fell for Experian being the fundamental indication of credit decisions!

AM1987

Marcus676 wrote: »

Hello
Why are you closing your credit card? how long have you had it?

Hi Marcus,

I have had the credit card for over 2 years. I am closing the account as I do not require the credit anymore and I wanted to free up my available credit. Is this not a wise decision? I was considering the Credit Builder Cash Card product to help boost my report.

Thanks

Marcus676_2

AM1987 wrote: »

Hi Marcus,

I have had the credit card for over 2 years. I am closing the account as I do not require the credit anymore and I wanted to free up my available credit. Is this not a wise decision? I was considering the Credit Builder Cash Card product to help boost my report.

Thanks

I dont know your particular situation, but reponsible use of credit is the way to improve your credit worthiness. Credit cards are one way among many others to do this. You already have this in hand so to speak. I have not been able to find a definitive answer as to the closing down of credit cards and its impact, i have looked hard. if you have a large limit on your card, you could request it to be reduced, this is only advisable if you balance is very low.