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Changing energy supplier - negative affect on credit rating
london_79
Posts: 11 Forumite
Hi all,
I thought I'd share some information.
Back in November I changed energy supplier to save money.
What I didn't consider was the affect it might have on my credit rating.
Because the energy supplier charges in arrears it effectively acts as a credit account.
As you may know newly opened credit accounts have a negative affect on your credit score for 6months.
To be clear there was never any missed payments etc.
Not sure if anyone else has had issues with this.
Thanks Tony
I thought I'd share some information.
Back in November I changed energy supplier to save money.
What I didn't consider was the affect it might have on my credit rating.
Because the energy supplier charges in arrears it effectively acts as a credit account.
As you may know newly opened credit accounts have a negative affect on your credit score for 6months.
To be clear there was never any missed payments etc.
Not sure if anyone else has had issues with this.
Thanks Tony
0
Comments
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It won't have any impact on how a lender views you.
You're just swapping one supplier for another and the scores are fictitious.0 -
The credit score is a made up marketing tool designed to sell you stuff by the credit agencies to "improve" the score that they themselves generate. If you are paying for any service related to a credit score, please cancel it and stop wasting money
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
0 -
Some energy suppliers will hit you with a hard search. Potential lenders will not be able to differentiate this search from a search carried out if you applied to borrow £20k from a bank (correct me if I'm wrong). So yes, changing suppliers will affect your ability to obtain credit - maybe only in a small way, but maybe the search will be the straw that breaks the camel's back.
Look for energy providers that don't smack you with a search, e.g. EDF, possibly SSE and some of the smaller providers.0
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