I feel my score doesn't accurately reflect my file?

SMF1

Hi All

Having a bit of rant but also looking for some advice as well.

I'm a 23 y/o male, with no dependants living with parents and not financially connected with anyone else.

I've had credit back and forward since I was 18, and have had credit accounts open (albeit not the same ones due to paying off and starting new ones) The average age of my accounts is around 19-20 months and I know this isn't ideal.

I've always made payments on time, with the exception of literally a few times, this has been simple mistakes and the payment has been made immediately the following day. I have had no defaults, CCJs or anything else that is deemed derogatory to your credit file.

I recently opened up a full account with Experian having had trouble getting credit for a new car. I saw a full run down of my credit score and anything affecting it.

The only thing that was showing on this report was 4 'Unknown' marks on my account with Shop Direct Ltd (Littlewoods). This wasn't right, so I immediately queried it and raised a complaint, I was called back, and it was sorted there and then with Shop Direct amending my file.

Now the point of the post - other than this and the things mentioned previously, I am not in financial ruin or debt. I have a long term balance of around £7k due to my motorbike which is on PCP (again, all trying to build my credit rating) and short term, about £1500.

I feel that my credit score does not reflect my almost impeccable credit history and I feel slightly down because of it. I don't know who to contact to start making improvements and I do all that I can to follow the guidelines and ensure I'm not making any decisions that affect my file.

I'm not one to have unrealistic ambitions and only apply for credit for items that I know I will be able to afford. Who can I turn to to help me, and how can I make lenders see that my credit file isn't as bad as the score seems to suggest?

For example my monthly income is around £1700 before any allowances are added; - my direct debits are about £230 per month and I was going to place a £5000 deposit on a £38,000 car. On PCP, this would mean by monthly payment was £450.

My score with Experian is 638 out of 999. While this doesn't seem or look bad, this is halfway between Very Poor and Poor on their rating.

Willing to answer any questions anyone may have or listen to advice that can point me in the right direction.

[Deleted User]

Your score is meaningless. No one sees it but you and it doesn't reflect how lenders will view you.

Ignore it and tell people you have a 999 score if you want to. We won't tell.

Ensure all card balances are cleared in full each month and manage your credit according to the terms - ie never miss payments or go overlimit.

SMF1

Deleted_User wrote: »

Your score is meaningless. No one sees it but you and it doesn't reflect how lenders will view you.

Ignore it and tell people you have a 999 score if you want to. We won't tell.

Ensure all card balances are cleared in full each month and manage your credit according to the terms - ie never miss payments or go overlimit.

But if all that's on my account was the 4 unknowns which I spoke about and has now been rectified and removed a few months ago - why is my score still poor and why am I finding it tough to get credit?

I obviously know about the so many applications within a certain time frame etc too. And the advice about credit cards is also met each month.

[Deleted User]

Your score is poor because Experian have given you a poor score. The same way they will give someone who is bankrupt a 999 score. Neither is realistic and neither matter.

If you don't have missed payments etc, then the most likely reason for rejection is affordability - you have a significant amount of debt already, in relation to your income.

Although your outgoings are low due to living at home, lenders will assume the more likely scenario that you have rent and bills to pay.

YorkshireBoy

You're 5 years into adulthood.
You've had many credit agreements.
Your credit history says 3-4 missed payments and a £7K motorbike debt.
You now want finance for a car.
At the moment you have the lowest 'living' expenses you'll ever have as an adult.


As for...

I have a long term balance of around £7k due to my motorbike which is on PCP (again, all trying to build my credit rating)

Don't kid yourself. You didn't buy the bike on finance to try to build your credit rating...you bought it on finance because you didn't want to/couldn't save up for it.


And as for...

short term, about £1500.

If this is an overdraft, or credit card debt, ie revolving credit, then this, coupled with the above, shows you're not managing your day-to-day finances very well at all.

I recently opened up a full account with Experian

If this isn't the 30-day free trial, then you're throwing £180 a year away on this.

Willing to answer any questions anyone may have

Following on from zx81's mention of affordability above, what's your income?

SMF1

YorkshireBoy wrote: »

You're 5 years into adulthood.
As for...Don't kid yourself. You didn't buy the bike on finance to try to build your credit rating...you bought it on finance because you didn't want to/couldn't save up for it.


And as for...If this is an overdraft, or credit card debt, ie revolving credit, then this, coupled with the above, shows you're not managing your day-to-day finances very well at all.If this isn't the 30-day free trial, then you're throwing £180 a year away on this.Following on from zx81's mention of affordability above, what's your income?

Sorry I really don't think that's for you to say at all and was quite rude of you to assume so.

I did buy my bike on credit, the same way I have a mobile phone contract, and a credit building credit card all to purposely help build my credit score.

If I was as broke as you seem to make me out to be I wouldn't be looking to put a £5k deposit down on a brand new car.

The short term debt total of £1500 is what I'm given by the free trial of Experian and ClearScore etc. That does not reflect how I manage my credit file at all?

I earn around £25k by the time I have shift allowances and everything else added on,

I also mentioned how the 4 missed payments was a mistake by ShopDirect and they amended my file because of that.

[Deleted User]

SMF1 wrote: »

I did buy my bike on credit, the same way I have a mobile phone contract, and a credit building credit card all to purposely help build my credit score.

Why on earth did you get a bike loan just to build a credit history? The card would do that by itself, and at no cost.

If you really didn't need to get the loan, pay it off now and save the interest. That will also then dramatically improve your affordability.

YorkshireBoy

SMF1 wrote: »

Sorry I really don't think that's for you to say at all and was quite rude of you to assume so.

Don't apologise. I have the benefit of the experience of life. You don't, yet.

I did buy my bike on credit, the same way I have a mobile phone contract, and a credit building credit card all to purposely help build my credit score.

OK, if you say so.

If I was as broke as you seem to make me out to be I wouldn't be looking to put a £5k deposit down on a brand new car.

Well done. Why a "brand new" car?

The short term debt total of £1500 is what I'm given by the free trial of Experian and ClearScore etc. That does not reflect how I manage my credit file at all?

It does to a lender who's considering whether to extend you further credit. Take my word for it.

I earn around £25k by the time I have shift allowances and everything else added on,

That's a decent income...just shy of £1,700 per month net...maybe a bit less depending on pension deductions. Makes you wonder why they declined you for some more credit doesn't it.

I also mentioned how the 4 missed payments was a mistake by ShopDirect and they amended my file because of that.

I think you'll find, if you read back, that you didn't mention the link between them at all. They read as two totally different issues.

And finally, what if the car finance company searched Equifax and/or CallCredit (the other 2 CRAs), what information would they find there? The missed payments possibly? Have you checked?

SMF1

Deleted_User wrote: »

Why on earth did you get a bike loan just to build a credit history? The card would do that by itself, and at no cost.

If you really didn't need to get the loan, pay it off now and save the interest. That will also then dramatically improve your affordability.

The card came after the Bike and only has a credit limit of £200.

There is no interest on the bike loan, as it was 0% and is a PCP deal.

SMF1

YorkshireBoy wrote: »

Don't apologise. I have the benefit of the experience of life. You don't, yet.OK, if you say so.Well done. Why a "brand new" car?It does to a lender who's considering whether to extend you further credit. Take my word for it.That's a decent income...just shy of £1,700 per month net...maybe a bit less depending on pension deductions. Makes you wonder why they declined you for some more credit doesn't it.I think you'll find, if you read back, that you didn't mention the link between them at all. They read as two totally different issues.

And finally, what if the car finance company searched Equifax and/or CallCredit (the other 2 CRAs), what information would they find there? The missed payments possibly? Have you checked?

The only thing that was showing on this report was 4 'Unknown' marks on my account with Shop Direct Ltd (Littlewoods). This wasn't right, so I immediately queried it and raised a complaint, I was called back, and it was sorted there and then with Shop Direct amending my file.

Was what I said. Does that not indicate that it was 'sorted' and my file was amended like I said above in my original post?

Also are you saying because I have a decent income I'm less likely to get credit?

It doesn't have to be BRAND NEW, I've also been looking at the same model second hand with low mileage and around 7k knocked off the brand new list price dependant on the optional equipment etc.

YorkshireBoy

SMF1 wrote: »

The card came after the Bike and only has a credit limit of £200.

Is the other £1,300 an overdraft? If not, what is it? Different types of credit are assessed in different ways. For example, payday loans (or anything else labelled 'short term lending') are frowned upon by lenders.