Credit score - negative information

informationplease

Hi


I've just checked my credit score on experience (30 day free trial) and my rating appears excellent but it mentions 1 negative worded as follows:


The usage of your available credit indicates a higher risk.


What does that mean and what can I do to rectify it? It says I am using 52% of available credit excluding mortgage.


Any advice would be much appreciated.


Thank you

Gaz83

It means that if your available credit is, say, £10,000, you're using £5,200 of it. The high risk part refers to the fact that you won't be being seen to make any effort to reduce this balance.

Are you regularly living within your overdraft, or just paying the minimum payments on loans or anything like that?

manIntheMiddle

Gaz83 has hit the nail right on the head, they are telling you exactly what he said (no need to repeat) Please bare in mind Experian give you a "credit score" and this isn't necessarily used by lenders. I personally have worked for many lenders and I have also made credit scores for many lenders also. A ratio of 50% advance of credit to available is nothing and was nothing i'd ever have factored into a decision to lend or not lend. If it was 65% or more I would have been concerned and 90% or more I may have written as a score unrecoverable and an automatic decline. If i was you.... if you can reduce a little, if not don't worry to much.. Hope this helps

The_Boss

Experience? Anyone who has spoken to any of their staff will tell you that experience is an asset that not many of their staff posess (unless it is experience of selling meaningless worthless ripoff "credit scores").

informationplease

Thank you very much, I understand.


So ideally I should be paying more than the minimum. At the moment due to various factors I am paying the minimum and using my overdraft, however I'm hopeful this will change shortly.


Thanks

Thrugelmir

informationplease wrote: »

At the moment due to various factors I am paying the minimum and using my overdraft,

Which suggests that unexpected event could immediately cause you financial distress. Many people are just a pay cheque away from a very slippery downward slope.

stator

informationplease wrote: »

Thank you very much, I understand.


So ideally I should be paying more than the minimum. At the moment due to various factors I am paying the minimum and using my overdraft, however I'm hopeful this will change shortly.


Thanks

Try paying the minimum + £1. Instead of being the guy who only ever pays the minimum, you are now the guy who pays a tiny little bit above the minimum. Also remember make all other extra payments to the highest APR. Even £5 extra per month will make a difference

drod

I've just done the same and its come out at 90 per cent. I have 2 cards with combined balance of 2300 pounds. If I make significant payments to both in the next couple of months is this likely to help as we would like to shop around for better mortgage deal