Credit rating affected if claiming benefits?

LondonCouple

HI,

I have recently left work and am in the process of setting up a business. I have been to citizens advice and they have said i am entitled to benefits whilst starting the business especially as I am the carer for two children and have my own home with mortgage.

Will claiming any benefits affect my credit rating?

Thanks
LC

[Deleted User]

You don't have a credit rating - just a history of how you have managed credit. Lenders will use this, as well as other information they ask you, such as income, to gauge whether they will lend to you.

The benefits would therefore form part of the income part of the equation (if allowed by lenders).

Malmo

Income from state benefits are not reported on your credit profile.
However, applications for credit may ask you to declare income from such sources, so credit decisions may be based on the information you declare, which is a different matter to what is or isn't reported by the authorities.