What credit score should I be working towards?

digitraveller

Hey,

I have never for the last 20 years had any credit, no cards, loans, nothing. This without me realising has had a negative impact on my credit score. In April, I successfully applied for a credit card and have been spending small amounts and paying it off in full for the last three months. I have registered with Noddle and can see the score increasing, but I am wondering what score should I be aiming towards.

To be honest - I have no interest in getting on the property ladder, applying for a loan, and I certainly don't have to have a ton of debt, but for some bizarre reason I feel the need to improve my credit score, just in case.

Once my score is to the level it should be, how long will it take before it starts falling again. Am I really putting time into this and is it wasted?

HappyMJ

digitraveller wrote: »

Hey,

I have never for the last 20 years had any credit, no cards, loans, nothing. This without me realising has had a negative impact on my credit score. In April, I successfully applied for a credit card and have been spending small amounts and paying it off in full for the last three months. I have registered with Noddle and can see the score increasing, but I am wondering what score should I be aiming towards.

To be honest - I have no interest in getting on the property ladder, applying for a loan, and I certainly don't have to have a ton of debt, but for some bizarre reason I feel the need to improve my credit score, just in case.

Once my score is to the level it should be, how long will it take before it starts falling again. Am I really putting time into this and is it wasted?

Some people are very happy with a 999 score...but to me that doesn't indicate an active credit file. As you apply for credit you lose points so if you're actually using credit you will never have a 999 score.

The score is meaningless really but I would make sure it is somewhere in the middle. It'll say what's bringing it down so try and resolve that....if you can.

[Deleted User]

You need to get over 1000 for the best deals, and preferably have a 5 in it somewhere.

Anthorn

This article may be of help:
http://www.moneysavingexpert.com/loans/what-credit-scores-mean

The credit score which a Credit Reference Agency supplies is only a guide to what you may experience with a lender. All lenders have their own method of scoring which is not published.

So concentrate on your credit history which is a list of your current and past credit accounts. You are looking at making what is coming to be known as a Prime credit history not to be confused with Prime credit cards. An unproven way to get it which I adhere to is a variety of accounts. So I have credit cards, bank accounts, loans, mail order accounts, mobile phone, telecoms as well as the usual energy and water.

Note that to get credit you need to have or have had credit and if you default with any accounts you are down the tube.

Helvetica_Van_Buren

Anthorn wrote: »

Note that to get credit you need to have or have had credit and if you default with any accounts you are down the tube.

Why do you go round giving such bad advice?

Anthorn wrote: »

Note that to get credit you need to have or have had credit ...

If this was true nobody would ever be given credit to start with.

Anthorn wrote: »

... if you default with any accounts you are down the tube.

You're mistaken, or lying.

glentoran99

Helvetica_Van_Buren wrote: »

Why do you go round giving such bad advice?


If this was true nobody would ever be given credit to start with.


You're mistaken, or lying.

His advice on this and other threads will cost people a fortune

Helvetica_Van_Buren

glentoran99 wrote: »

His advice on this and other threads will cost people a fortune

I know, right?! This person has probably been nominated by the financial institutions to come on here and sabotage people's money-saving efforts in an attempt to increase their profits - albeit very slowly.

FinanciallyChallenged

The 'scores' the CRAs give really are meaningless. I had a 'fair' score of 540 with Noddle last month, and this month I've applied for and been accepted for a new credit card with an initial limit of £18000 and a very long balance transfer offer. It's all about what's actually in your credit history, not the output of some random number generator!

spikyone

Noddle in particular is rubbish - they give you an artificially low number, on the basis of trying to sell you their "Noddle Improve" service. According to their website, my score is well below average, yet a recent free trial of Equifax and Checkmyfile showed my score as substantially better than average. If you want a free service, ClearScore is far better. Just bear in mind that not all companies will provide a record to every credit agency (CRA).

As others have said, the numbers are largely meaningless. Keep using the credit facilities you have (things like a contract mobile phone will usually appear on your file), make sure you repay on time, and you'll have nothing to worry about.

MallyGirl

FinanciallyChallenged wrote: »

The 'scores' the CRAs give really are meaningless. I had a 'fair' score of 540 with Noddle last month, and this month I've applied for and been accepted for a new credit card with an initial limit of £18000 and a very long balance transfer offer. It's all about what's actually in your credit history, not the output of some random number generator!

very similar story here. It is all about what they know of your past behaviour

bsms1147

Anthorn wrote: »

Note that to get credit you need to have or have had credit

But how do you get the credit that you need to enable you to get credit, without already having the credit that enables you to get the credit in the first place????