Help! Why is my credit score so poor?

AnnaCatrinah

Hi all,

I'm hoping for some advice...I have just collected my credit score for the 1st time, and am shocked to find out that it's 350.

I have a £1200 overdraft which I have breached by about £5 on two occasions, but apart from this, have no credit cards, store cards, loans etc.

I have also been late to pay gas bills on two occasions. Is this really enough to drag my score down to 350?!

rtho782

You've been going over your overdraft limit, and been late on bills, many energy companies report to credit reference agencies.

As far as anyone is concerned, you've shown you CAN'T pay bills on time, it's not a lack of evidence.

Someone elses credit would not affect yours. Start paying things on time, and don't go over limits, and in a few years your will have better credit.

forgotmyname

Your score is low because its a made up number that only you and the company providing it ever see.

Spend on a CC and pay it off before its due and your score drops.

Dobbibill

Your score is how the CRAs view you. No-one else sees that 'score'.

If you want any lending they will look at the data/evidence on your CR - thus far it says you do not pay your utility bills on time, nor do you live within your means on a monthly basis. This along with any internal information held by the said lender will be assessed to consider your eligibility for lending of a Credit Card/loan etc.

Pay bills on time, make sure you are registered on the ER and give it time and you may become a better risk to future lenders.

DCFC79

Lenders cant see your salary on your credit report.

Why are you late paying the gas bill ? Pay it via direct debit.

And your overdraft, why have you breached it ?

Stay out of your overdraft and live within your means.

AnnaCatrinah

Thanks. This is basically what I had expected, but am just surprised that such a small number of late payments can have such a dramatic effect on the overall score..

Superscrooge

Credit providers want customers who can stick to a credit agreement. The fact you haven't paid your bills on time and have exceeded your agreed overdraft makes you a poor credit risk.

Six months of always paying your bills on time and not exceeding your overdraft will help improve your credit history.

sourcrates

Superscrooge wrote: »

Credit providers want customers who can stick to a credit agreement. The fact you haven't paid your bills on time and have exceeded your agreed overdraft makes you a poor credit risk.

Six months of always paying your bills on time and not exceeding your overdraft will help improve your credit history.

Should you want to play this stupid game that is !!!

Ben8282

sourcrates wrote: »

Should you want to play this stupid game that is !!!

Do we really have any other choice other than to play by the lenders rules?

Nebulous2

AnnaCatrinah wrote: »

Thanks. This is basically what I had expected, but am just surprised that such a small number of late payments can have such a dramatic effect on the overall score..

It may be a small number of late payments, but it is in the context of a very limited credit history. If you had a lot of history, regular use of credit cards, paid in full before the due date for instance, then a few late payments wouldn't be so conspicuous.

Time will heal though. Try to avoid any more - set up DDs for utilities. Think about a credit card to demonstrate you can keep to agreements.

DCFC79

AnnaCatrinah wrote: »

Thanks. This is basically what I had expected, but am just surprised that such a small number of late payments can have such a dramatic effect on the overall score..

You need to make sure your not late paying bills.