What are classed as credit accounts?

Rebekah12

Hi

I’ve heard people mention them not having many lines of credit and this affecting their mortgage chances and I’m wondering what types of accounts are classed as credit accounts. I currently have a bank loan and a phone contract and have had a credit card in the past. I haven’t missed or had a late payment on anything in about 5 years I have regular direct debits for utilities including rent, council tax, gas/electric, water and broadband. Are these classed as credit accounts? Or would it be in my interest to take out a credit card and clear it every month as another line of credit? I’m hoping to get a mortgage by the end of the year once I have saved up a bit more.

Thanks

Wozza85

Bank loan, phone contract and credit card are classed as credit accounts.

Rebekah12

Thanks Wozza.

Does that mean that paying my utilities on time won't count for much in a mortgage application? And would getting a credit card improve my credit since the only credit accounts I have are my loan and phone contract?

Thanks

forgotmyname

Most of your utilities wont be recorded. There are a few companies that do it seems.

Wozza85

Rebekah12 wrote: »

Thanks Wozza.

Does that mean that paying my utilities on time won't count for much in a mortgage application? And would getting a credit card improve my credit since the only credit accounts I have are my loan and phone contract?

Thanks

Yeah as 'forgotmyname' said, utility bills rarely if ever show on credit report...you can just get your credit report and check.

Credit cards, loans and phone contracts will always show. Missing your water bill one month wouldn't effect credit score but missing a credit card, loan or phone bill will.

Getting a credit card will help providing you never miss a payment obviously. And having a loan and paying it off on time etc will only help also

Rebekah12

Thank you all for the clarification

Thrugelmir

forgotmyname wrote: »

Most of your utilities wont be recorded. There are a few companies that do it seems.

More and more are reporting. As utility companies use the data when granting new customer accounts. A two way street.

NouZid

Thrugelmir wrote: »

More and more are reporting. As utility companies use the data when granting new customer accounts. A two way street.

I have recently ordered my Experian report and British Gas have been reporting on it since I opened my account with them in 2011, it also appears on my Callcredit report. So I'm guessing others are either doing the same of will follow soon.