Very very confused about credit score

TheMeerkat

hi,

complete credit newbie here. i applied to be someone's guarantor and was refused due to poor credit (equifax). i was shocked, so i decided to check it myself, and it was really really rubbish. it's been 3 years since i left university and i'm in a very high paying job. i've never taken a loan out in my life and never used credit cards. the only time i was in debt was when i got into my overdraft while at uni, and i paid that off within a month. i don't pay many bills since they're all under my partner's name. i expected to have some sort of average score, but the number i got was below 350!

anyway, i looked online and the general advice was to apply for a credit card, use it and pay the balance off in full and on time. so i did just that. i applied for a credit card and was approved. after checking my equifax report again, it's gone down by another 47 points since i got approved! i really don't understand what's going on and how to go about fixing the situation as soon as possible -- any help is much appreciated!

meerkat

[Deleted User]

What you've discovered is that your score doesn't mean anything. It will drop on any change.

The good news is no one sees it and no one would care if they did. Lenders will view you on your credit history, not a three digit number given by someone who won't lend you a bean.

Use your card regularly, clear in full each month and you'll build a solid history over time.

Dobbibill

Your credit score is a number only you can see along with the CRA that provides it. It's their perception of what you are like as a risk to a lender.
They aren't lenders and so in truth, their perception is worth next to nothing.

When checking your CRs, check that all the data held is correct. eg - your name, address, dates of moving (if you have any), that you are registered on the ER, any accounts you have are reported accurately. Things like current accounts and mobile contracts are normally reported.

Now that you have a CC, make sure you use it sensibly. Use it for groceries or fuel, day to day type spending and pay off IN FULL and ON TIME each and every month. Stay well away from your credit limit.

TheMeerkat

thanks for the replies, guys. unfortunately, their numbers do mean something -- i can't be a guarantor for my brother's rent contract because of it. regarding the ER, i'm not actually registered -- will i see an increase in this arbitrary number specifically because i'm registered? also, does anyone know how long it would take (roughly, of course) to climb 100 equifax points?

[Deleted User]

No, you've really not got it.

The number means nothing. If you want a 999 number, go bankrupt and wait 2 years for it to reset. Your other option would have been to turn 18 and stay off grid, but it's too late for that. But neither of those categories would have had anyone lending to you.

You need a good credit history. That requires sensible credit usage and time.

Lenders will also view you much better if you are on the ER, so get that sorted.

Dobbibill

You say their numbers do mean something......can you tell me what they mean, when and how it's used because we've just told you the opposite?

You were refused as a guarantor because you don't have enough reliable history to be considered a good back up to get their money back. Effectively, this has probably been a good thing, but that's another story for another thread

You aren't on the ER, so hardly demonstrating a stable residential status.

Is there something your aiming for in the next 100 points? Is there some sort of prize awaiting?

TheMeerkat

hi Dobbibill,

yes, i am claiming that the numbers mean something. when approval for a process requires a score of at least x from equifax, and you are at x-100, then you need to climb at least 100 points to win the prize of being approved.

meerkat

[Deleted User]

TheMeerkat wrote: »

when approval for a process requires a score of at least x from equifax, and you are at x-100, then you need to climb at least 100 points to win the prize of being approved.

Who is telling you this? And why is their doctor not providing more effective medication?

Stigy

TheMeerkat wrote: »

thanks for the replies, guys. unfortunately, their numbers do mean something -- i can't be a guarantor for my brother's rent contract because of it. regarding the ER, i'm not actually registered -- will i see an increase in this arbitrary number specifically because i'm registered? also, does anyone know how long it would take (roughly, of course) to climb 100 equifax points?

It's not the number they're looking at. For example, a while ago I had a score of about 960, but had three listed defaults and two CCJs. Now I only have the two satisfied CCJs listed along with some well looked after credit (all on time payments and no defaults), my score is showing about 500ish. Experian have admittedly changed how they score people, which means the number you see is a more realistic guide on how lenders view you, however, the lender WONT actually see the number, much less make a lending decision based on t.

Dobbibill

TheMeerkat wrote: »

hi Dobbibill,

yes, i am claiming that the numbers mean something. when approval for a process requires a score of at least x from equifax, and you are at x-100, then you need to climb at least 100 points to win the prize of being approved.

meerkat

Can you tell me which lender you are applying to?

Lenders have never disclosed their criteria but if this has changed, we need to tell everyone.

TheMeerkat

Deleted_User wrote: »

Who is telling you this? And why is their doctor not providing more effective medication?

this came from their compliance department. them's the rules, unfortunately. overall, it sounds like a sensible rule and i can't change it anyway -- i'm just looking for the quickest solution to this dilemma. i'm trying to understand why my score is ridiculously low given i have no credit problems and how to go about boosting it as quick as possible.