20 years old financially responsible - Poor Credit Score (583)

kteara

Hi so I've done an experian credit score report and Its come back as 583. The reason I did this check is because I was refused to open a new bank account with the Co-operative. I have never been in debt, never gone into my overdraft and always made payments to Direct Debits on time. The only thing I have done is opened a few current accounts in April to receive high interest from them.

3 Negative factors came up:
1)You have recently opened 1 or more new credit accounts.
2)The age of your accounts indicates lenders are likely to view you as higher risk
3)You have a significant number of recent searches on your credit report

Now, Im not blaming MSE but all that switching banks and opening multiple accounts to reap the interest and switching benefits has caused me to have a very poor credit score. What can I do now to build my score back up as I honestly believe this is unfair. I am very responsible with my money.

Tixy

Making several credit applications can have a very short term impact on your ability to get credit.

If you wait a few months those applications from April will no longer be having that impact and within 6months are very unlikely to affect any potential lender's lending decision.

As a very rough guide people are generally recommended to have no more than 3-4 credit applications in any 6month rolling period.

kteara

Tixy wrote: »

Making several credit applications can have a very short term impact on your ability to get credit.

If you wait a few months those applications from April will no longer be having that impact and within 6months are very unlikely to affect any potential lender's lending decision.

As a very rough guide people are generally recommended to have no more than 3-4 credit applications in any 6month rolling period.

How long will these negative factors leave a mark on my credit history, even if my credit score goes up? I wanted to have a spotless record.

20aday

kteara wrote: »

How long will these negative factors leave a mark on my credit history, even if my credit score goes up? I wanted to have a spotless record.

First and foremost ignore your "Credit Score" as it's just some numbers generated based on the data on your files. Your account conduct and history bears more weight on who will grant you credit in the future.

Searches on your credit file will be visible to lenders for up to 12 months; however as Tixy states spacing applications and conducting few searches as possible in any six month period will look more favourable.

Too many searches can come across to lenders that you are struggling financially and desperate for credit.

Tixy

Credit application searches appear on your file for 1 or 2 years (depending on the credit reference agency).

The score from experian and the negative factors they list should always be read with a large pinch of something salty. Potential lenders base their decision on your basic credit report (not the score and not experian's interpretation of your report), and different lenders have differing criteria.

kteara

Tixy wrote: »

Credit application searches appear on your file for 1 or 2 years (depending on the credit reference agency).

The score from experian and the negative factors they list should always be read with a large pinch of something salty. Potential lenders base their decision on your basic credit report (not the score and not experian's interpretation of your report), and different lenders have differing criteria.

in that case, how do I build up my "basic credit report"

MEM62

kteara wrote: »

in that case, how do I build up my "basic credit report"

I think you are missing the point of the advice you are being given. As already explained, the impact of the searches will be negated in six months or so. You don't need to do anything. All you have to do is wait and in future be aware not to open too many new accounts of make a lot of credit applications in a short space of time. Just continue to run you finances responsibly and your credit record will take care of itself.

YorkshireBoy

kteara wrote: »

Now, Im not blaming MSE but all that switching banks and opening multiple accounts to reap the interest and switching benefits has caused me to have a very poor credit score.

Has it though? What was your 'Experian credit score' in March, ie prior to your current account applications?