Credit rating and life.....

FLAPJACK

Hello,


I thought I would see what the consensus is here on my situation.


I am retired and have no debts, I can manage to get along with my pension and have savings to fall back on should I need to.


The question is, as I am 58 and hopefully intend to be around for a while yet the fortunate situation is not helping my credit rating as looking at it today I can see that the records of loans I had are going to vanish next year leaving just a record of a CC and utility supplier.


I would imagine that as a result my rating will diminish accordingly.


I wonder what happens to people who haven't got a safety net of savings they could call on and have a not too good looking rating just through not having proof of payment history of loans taken out in the past.


I'm just thinking if I needed to get my hands on a sum in these times of low rates It may be an idea to borrow in order just to keep a decent rating and in turn leaving my savings intact.


Over to you.....cheers

DCFC79

Your credit rating is of no importance with regards loans as lenders don't see it. What matters is your credit history.

Maybe get a credit card and use it and pay it off each month.

FLAPJACK

I'm always getting the rating/history mixed up! I forgot to mention that I do have a CC only use it for petrol mainly but your correct it does show willing I suppose.


I did a while ago pose this question to my bank, the reply was that with my history with them I would have no problem, and they would lend to the age of 80.


Having researched this site I can see that really the bank is maybe not the best place to go for a loan (interest wise).

[Deleted User]

Keep using your credit card regularly - that's all you'll need. Certainly don't take a loan you don't want or need.

Thrugelmir

FLAPJACK wrote: »

I am retired and have no debts, I can manage to get along with my pension and have savings to fall back on should I need to.

Then why feel the need to take credit of any kind.

FLAPJACK

I take your point, but it's just an extra layer of security knowing that I could have access to a loan if needed.


Also as I said before, in this world of low rates it wouldn't cost much more that the same amount would earn in
interest....plus my capital would still be intact.


The idea of using the CC more frequently is one to take on board, I have had it years and it seems (from looking at the CC boards here) that the credit limit is high for these days.

Ben8282

OK so you have a credit card with a nice high limit. You have that to fall back on in an emergency. Just keep using it more use it for shopping not just petrol and pay it off each month.
How come you have only one utility account? Get rid of the prepayment meter and get more utility accounts. Get a SIM only mobile phone contract to replace your pay as you go phone. That should save you money and add to your number of credit accounts. Get a home phone. Get broadband.
With regard to your belief that your bank would not be the best place for you to get a loan interest rate wise I am not sure I would agree.
You could even apply for a new credit card to keep for emergency use.

patanne

I suspect I would be in the same boat. Mortgage paid off years ago and never ever had a loan. I do keep both a second bank account, held from back in the day when if your own banks ATM went down you were stuck without access and a second credit card which I use once a year to keep it live for the same reason.

I have found since I retired that the need for a mobile phone was for other people and emergencies plus text replies to other people as there is little that you can't deal with from home. I now spend less than £2 a month on it and as they are about the worst for causing problems on your report, personally I would avoid. I chose to have free calls all day on my home phone, which is probably costing me more than it saves, but in those months when family emergencies have involved several calls a day it has avoided the worry of higher bills and family can be trained to ring you once & you will ring them back which has been very useful.

I have assumed that you are electric only or have both utilities with the same provider!

I also continue to save as I have always done since my mortgage was paid off. My biggest financial nightmare now is a family member going abroad without adequate insurance and needing airlifting back!!

The biggest problem I can see would be for people who are renting whilst in retirement, as this would make retaining savings much more difficult, especially if they need to move regularly.

solentsusie

Ben8282 wrote: »

How come you have only one utility account? Get rid of the prepayment meter and get more utility accounts. Get a SIM only mobile phone contract to replace your pay as you go phone. That should save you money and add to your number of credit accounts. Get a home phone. Get broadband.

You are making a real assumption here. Just because someone only has one utility reporting to the CRA's does not mean they are on prepayment meters. This depends on the supplier that you are with. My current gas and electricity supplier doesn't report neither does my water supplier.

FLAPJACK

Hi,


It seems to me that the credit file is only as accurate as it can be if it is a fair representation of your commitments.


If only one utility provider decides to appear on the credit file what can I do....already people have jumped to the wrong conclusion that I have a prepaid meter....never have had one, which I suppose is what a prospective lender would think too.


My broadband/phone provider (TT) has only recently appeared so only shows a short history (even though I've been with them for years).


As for a mobile phone....I have little use for one....I do have one but a PAYG. All my landline calls are covered by the monthly fee I pay which includes free BB.


As has been suggested I'll start using the CC more often, I have a second one which has never been used as the main card has an APR that mirrors the BoE rate +1% at the moment (well since the rates went to 0.5%) the rate is 1.50% APR. The other card is around 18% I think.


Thanks for the input.

Ben8282

I apologise for jumping to wrong conclusion about prepayment meter.
However as happens so frequently your op was not accurate. It now appears that you in fact have 2 credit cards one of which has an APR of 1.5%. If you have a credit card with a 1.5% APR then I don't think that your credit rating situation can be bad at all.
Have you actually been refused a loan by anybody? If not I think perhaps you are worrying unduly here. Wait until you need a loan, apply and if refused then worry about why.