Question

Legacy_user

Does taking out direct debits help boost your credit rating, providing you pay on time?

sourcrates

Hi,

Not in itself no, but it does mean your payments will be made on time so you wont get any late payment markers on your credit file.

DCFC79

himynameisaaron wrote: »

Does taking out direct debits help boost your credit rating, providing you pay on time?

Does it improve a credit rating that only you can see ?

Direct debit is the aay to go for monthly payments.

HeCh

Paying on time demonstrates that a credit account has been managed according to the terms and conditions of the agreement regardless of the payment method (e.g. direct debit, standing order, electronic transfer, cheque in the post, cash at the counter).
Timely payments may be recorded as credit file data and will, in part, influence any credit score generated using that data.

System

DCFC79 wrote: »

Does it improve a credit rating that only you can see ?

Direct debit is the aay to go for monthly payments.

I heard that if your credit rating is 700 or above, you win a small stuffed toy

Ben8282

himynameisaaron wrote: »

Does taking out direct debits help boost your credit rating, providing you pay on time?

The means of payment (direct debit, faster payment, cheque, cash) has absolutely no effect whatsoever on your credit score or rating. Why should it? Does your credit report show method of payment? How would anybody actually know?