Credit score and credit card

linxlad

HI there,

My credit score is in a bad state since I went on a wreck less borrowing spree during the last year of Uni and shortly after I graduated. My Credit score was poor. So I followed the advice laid out by this forum/site and took out a Vanquis credit card soley for fuel and food/online purchases that I can easily pay back. The limit is only £150 which suits me fine.

However, just taking out the card has dropped my score by nearly 200 points. I nearly built it up to fair but it's now dropped to very poor

I use Creditexpert and monitor my rating every month. Will borrowing on my credit card and paying it back each month seriously do what many suggest and raise my score over time? I would really love a good credit score but it feels like I am fighting a losing battle

Please, any advice would be graciously received.

Kind Regards:(
Nathan

Wheres_My_Cashback

linxlad wrote: »

HI there,

My credit score is in a bad state since I went on a wreck less borrowing spree during the last year of Uni and shortly after I graduated. My Credit score was poor. So I followed the advice laid out by this forum/site and took out a Vanquis credit card soley for fuel and food/online purchases that I can easily pay back. The limit is only £150 which suits me fine.

However, just taking out the card has dropped my score by nearly 200 points. I nearly built it up to fair but it's now dropped to very poor

I use Creditexpert and monitor my rating every month. Will borrowing on my credit card and paying it back each month seriously do what many suggest and raise my score over time? I would really love a good credit score but it feels like I am fighting a losing battle

Please, any advice would be graciously received.

Kind Regards:(
Nathan

Yes, ignore the credit score as it's meaningless and doesn't exist ! If you really like having numbers just make your own up...999 perhaps, it means just as much

CLAPTON

linxlad wrote: »

HI there,

My credit score is in a bad state since I went on a wreck less borrowing spree during the last year of Uni and shortly after I graduated. My Credit score was poor. So I followed the advice laid out by this forum/site and took out a Vanquis credit card soley for fuel and food/online purchases that I can easily pay back. The limit is only £150 which suits me fine.

However, just taking out the card has dropped my score by nearly 200 points. I nearly built it up to fair but it's now dropped to very poor

I use Creditexpert and monitor my rating every month. Will borrowing on my credit card and paying it back each month seriously do what many suggest and raise my score over time? I would really love a good credit score but it feels like I am fighting a losing battle

Please, any advice would be graciously received.

Kind Regards:(
Nathan

score is meaningless


what matters is what is on your credit files, on electoral roll etc.
but using a CC regularly and paying in full each month will be helpful to increasing your credit worthiness

linxlad

Thanks for your replies

The score means nothing? :S Won't equifax or other companies send back a score during credit checking? If score is not the deciding factor how will I know when I will be "credit worthy"?

thebritishbloke

Stop paying for CreditExpert, as others have said, the score is meaningless. When you apply to a company for finance, they never see this number, only you ever see it. Honestly, never pay for it again, ignore it. There's really no need to check your reports more than a couple of times a year, or when you're planning on applying for new credit.

Use the CC regularly and pay it in full each month, this will improve your credit worthiness.

linxlad

Thanks, I won't worry too much about what that reports says and cancel it. I know I sound like a broken record but how do you know when you are credit worthy to a company?

eskbanker

Each company has their own scoring mechanism and naturally won't publicise these, although they do tend to gather some information from the credit rating agencies. The acid test is actually applying, but there is the MSE eligibility checker tool to assess your chances and help identify which cards you're likely to be accepted for, in advance of making an application.

redpete

The credit score isn't quite "meaningless" but it has very limited value in telling you what credit you will get from a particular lender.

A lower score indicates that there will be fewer lenders willing to do business with you and that they are likely to offer you less and/or more expensive credit. However, as others have pointed out, each lender has their own criteria - the credit rating agencies send a lender the raw information for the lender to calculate their own 'score', they do not send them the same score they sell to you.

Evidence that you are successfully managing credit (e.g. using and paying off in full a credit card each month and never going over the credit limit) is likely to make you more attractive to other lenders. I would think this is likely to have a bigger positive effect than the negative effect of having access to an extra £150 of credit but of course the evidence won't be there until you've had the card a few months.

CLAPTON

what does your credit record actually show?

david_wilson1

I don't think, you don't need to worry about it. Just be honest and pay your debt honestly.