Ways I can improve my credit score/file

autumn2012_2

Looking for advice on how I can improve my credit score / file. I currently have 8k debt - loan. I have 3 credit cards currently open with 0 balance (loan paid them off)

sourcrates

autumn2012 wrote: »

Looking for advice on how I can improve my credit score / file. I currently have 8k debt - loan. I have 3 credit cards currently open with 0 balance (loan paid them off)

Hi,

So you consolidated the cards with the loan yes ?

Best advise I can give you is close down the card accounts straight away, to avoid any possibility of you posting on this forum again in 6 months time saying :

"I'm 16k in debt and don't know what to do".

I am assuming you have defaults or late payments from these card accounts, so the only healer is time, pay your bills promptly, don't pay late, don't default, and in six years (from default/late payment date) your file will clear itself.

autumn2012_2

sourcrates wrote: »

Hi,

So you consolidated the cards with the loan yes ?

Best advise I can give you is close down the card accounts straight away, to avoid any possibility of you posting on this forum again in 6 months time saying :

"I'm 16k in debt and don't know what to do".

I am assuming you have defaults or late payments from these card accounts, so the only healer is time, pay your bills promptly, don't pay late, don't default, and in six years (from default/late payment date) your file will clear itself.

Hi, No defaults or late payments. Homeowner with mortgage again no defaults or late payments, simply was a very good loan rate and was cheaper than my cc.

HappyMJ

autumn2012 wrote: »

Hi, No defaults or late payments. Homeowner with mortgage again no defaults or late payments, simply was a very good loan rate and was cheaper than my cc.

I wouldn't close the cards.

I would set the direct debit up so each are paid in full each month and I would use them all at least once each month.

CC's offer protection that cash does not so I would channel all my spending through them and pay them in full. Even if you've paid a CC off in full and a supplier goes out of business you can still get a refund from your CC company months later.

autumn2012_2

HappyMJ wrote: »

I wouldn't close the cards.

I would set the direct debit up so each are paid in full each month and I would use them all at least once each month.

Thank you ! Even if I just use them for a small transaction say £10 fuel?

sourcrates

autumn2012 wrote: »

Hi, No defaults or late payments. Homeowner with mortgage again no defaults or late payments, simply was a very good loan rate and was cheaper than my cc.

Then you already have a good credit record in that case, what is there to improve ?


Are you referring to your credit score ?
If so, that is just a number made up by the credit reference agencies, the higher the number is, the higher THEY rate you for been eligible for certain financial products.


No one else ever sees this number, a potential lender certainly doesn't, and it is no guarantee of been accepted for these products, as every lender has there own scoring criteria.


People with lower scores are encouraged to buy "credit improvement" products, which is how the CRA`s make there money, the whole set up is a massive con, credit scores are totally meaningless.

autumn2012_2

sourcrates wrote: »

Then you already have a good credit record in that case, what is there to improve ?


Are you referring to your credit score ?
If so, that is just a number made up by the credit reference agencies, the higher the number is, the higher THEY rate you for been eligible for certain financial products.


No one else ever sees this number, a potential lender certainly doesn't, and it is no guarantee of been accepted for these products, as every lender has there own scoring criteria.


People with lower scores are encouraged to buy "credit improvement" products, which is how the CRA`s make there money, the whole set up is a massive con, credit scores are totally meaningless.

My credit score/file is showing as fair - middle of the road. I dont know why as I have never missed any payments or CCJs anything like that. Im in employment and always pay all my bills on time. Its really strange.

sourcrates

autumn2012 wrote: »

My credit score/file is showing as fair - middle of the road. I dont know why as I have never missed any payments or CCJs anything like that. Im in employment and always pay all my bills on time. Its really strange.

Pay no attention to it, I bet your Noddle report is full of ads for credit improvement cards too !!


You are doing all you need to do, remember, no lender ever sees that credit score number, only you see that, as I said before, credit scores are totally meaningless, and bear no resemblance to how a potential lender will score you.

autumn2012_2

There must be something affecting it though as I recently changed banks from Lloyds to Halifax. Halifax would not offer me a credit card but I already have one with lloyds! they are the same bank!

CalumHeath

autumn2012 wrote: »

There must be something affecting it [...]

Pay attention: your credit score/rating is completely irrelevant. Nobody sees it. Lenders do not know your credit rating and never will they make decisions based on the records within your credit history. Credit reference agencies (the people that give you the score) do not lend money.

Credit reference agencies give you a score so that you subscribe to their 'improve' services. Do you understand?

sourcrates

autumn2012 wrote: »

There must be something affecting it though as I recently changed banks from Lloyds to Halifax. Halifax would not offer me a credit card but I already have one with lloyds! they are the same bank!

Probebley due to affordability issues, in relation to your income maybe, having 3 open accounts already, lenders have to take affordability into account when making lending decisions.

As I said before, every lender scores you using there own credit scoring system, they all have there own criteria, obviously you did not fit with what they were looking for, it's nothing to do with the score the CRA gives you, and does not mean you are a bad risk.