My highest credit limit indicates higher risk - how do I fix this??

sunnyday88

Hi all,

I was checking my Experian report today (like a fool I forgot to cancel my membership and am paying £14.99 a month so might as well use it until I get my butt in gear and cancel!) and my score is only 'fair' and the negative flag was that my highest credit limit indicates a higher risk.

Basically I have a current account with a large overdraft which I am always in (haven't managed to get out of it since finishing uni) by the end of the month I'm usually £-900, then salary goes in and I'm in the black again for a couple of weeks. I have 2 credit cards, one from TSB with a limit of £1000 and one from Tesco at £625 (reduced from £1000 when I missed a couple of payments a year ago). I pay more than the minimum amount each month and usually completely clear the Tesco card. TSB usually gets cleared over a 6 month period, in time for a big spend on such items as holiday flights or car costs. The only other accounts affecting my credit are a Nationwide current account which I use for savings and gifts of money that are not for everyday spending, and my mobile phone contract which I have paid on time every month for the last 8 years!

I'm not sure I understand how to fix this - £1000 is the highest I've ever been offered, and if my credit rating is only 'fair' surely I'm unlikely to receive an offer of a higher limit? And applying for more cards and getting refusals will have an even greater negative affect on my score! :undecided

Any advice or suggestions for how I might improve my score are would be hugely appreciated.

sunnyday88

Thanks for the reply adindas, however you haven't answered my question and are using my thread (among others) as a way of bashing these companies. Please respect these forums and give relevant advice. If you have an issue with companies such as Experian, start your own thread when you can discuss with likeminded people.

[Deleted User]

Your credit score is irrelevant, so ignore that. No one else knows that Experian has deem you to be 'fair', whatever that may mean.

Simply use the cards regularly, pay off in full wherever possible and keep to the terms - eg no missed payment or overlimit.

jo-bo

I imagine it's the missed payments that are bringing your score down, coupled together with the fact you spend half the month in your overdraft.
How much is your overdraft costing you?
What savings rate are you getting at Nationwide?
How many credit applications have you made in the last 6 months?

cheops2006

You need to clear that overdraft, Banks are slowly turning overdrafts into 'payday lending'. Once you have cleared that then you will maybe offered an increase.

Priority to me would be the overdraft.

ppjs

May I ask where overdrafts appear on a credit report? Mine doesn't seem to?

cheops2006

Mine appears next to my current account details.

Overdraft Balance £0
Overdraft Limit £500

ppjs

My current account doesn't appear anywhere on my credit report. I have gone through it several times now and its definitely not there.

cheops2006

You need to find out why your current account doesn't appear its very important to show you have a regular bank. Could it be a name problem? Address Problem?, Its worth sending a message to the CRA they will help find out why it isn't appearing.

Thrugelmir

Worry less about your "score" and more about your debts. As this is what lenders will score you on. When it comes to applying for further credit.

Tackle the overdraft. If need be convert this into a loan in order to have the discipline to repay it.

CLAPTON

sunnyday88 wrote: »

Hi all,

I was checking my Experian report today (like a fool I forgot to cancel my membership and am paying £14.99 a month so might as well use it until I get my butt in gear and cancel!) and my score is only 'fair' and the negative flag was that my highest credit limit indicates a higher risk.

Basically I have a current account with a large overdraft which I am always in (haven't managed to get out of it since finishing uni) by the end of the month I'm usually £-900, then salary goes in and I'm in the black again for a couple of weeks. I have 2 credit cards, one from TSB with a limit of £1000 and one from Tesco at £625 (reduced from £1000 when I missed a couple of payments a year ago). I pay more than the minimum amount each month and usually completely clear the Tesco card. TSB usually gets cleared over a 6 month period, in time for a big spend on such items as holiday flights or car costs. The only other accounts affecting my credit are a Nationwide current account which I use for savings and gifts of money that are not for everyday spending, and my mobile phone contract which I have paid on time every month for the last 8 years!

I'm not sure I understand how to fix this - £1000 is the highest I've ever been offered, and if my credit rating is only 'fair' surely I'm unlikely to receive an offer of a higher limit? And applying for more cards and getting refusals will have an even greater negative affect on my score! :undecided

Any advice or suggestions for how I might improve my score are would be hugely appreciated.

you need to stop missing payments
stop using your OD
clear the CC in full each and every month
build up a little savings for total predictable 'emergencies '
save for holidays before spending.

go over to the debt free wannabe site and get advice and support from the people there with similar debts.