MSE Credit Club ratings

gropinginthedark

Mine shows "debt ratio" as weak. I'm wondering why. It is possible that it's because I've got several credit/debit cards with high spending limits? Several are dormant, just signed up because by doing so I got a big store discount for example and all are always paid off in full every month. Would explicitly cancelling some improve the debt ratio? Also it seems odd that weak debt ratio doesn't impact my overall credit score which is 999 (the maximum possible).

MSE_Chris

Hi there,


Your Debt ratio is a measure of your debt in relation to your income.


You will see an amber colour here if you have no current debts and using no or little credit available to you. The reason behind this is that some lenders can see this as a negative as they like people to be in more debt than we at MSE would like. When someone is in debt or using carrying over a balance on a card, it's likely they're paying interest and interest makes the lenders money.


If you're paying off all your cards when the balance is due, lenders might see you as unprofitable.


I hope that give you some insight into why you're seeing this result. It's not a negative thing from our point of view so no need to change what you're doing!

SYHR

It's weak because you have little to no credit, and therefore the ratio is very low. It's difficult for lenders to determine whether you'd be a good customer if you've got little history of borrowing.

PixelPound

Your credit score isn't effected by income, mine shows weak, and will do so until they allow us to edit data. A job change has increased my income but I don't know how the £7K rise will change it.

TBH until this is enabled the MSE CC is useless.

MSE_Chris

nic_c wrote: »

Your credit score isn't effected by income, mine shows weak, and will do so until they allow us to edit data. A job change has increased my income but I don't know how the £7K rise will change it.

TBH until this is enabled the MSE CC is useless.

Hi nic_c, we're working on this feature as we speak and should be available in the next 2 weeks! I hope that helps and like what's been said, your income/expenditure doesn't affect your score but the rise in salary will affect your credit hit rate and affordability score (disposable income etc).