Bad Credit Score?

Experting

I have just generated a new Noddle credit score and its giving me a score of 589 which is 3/5?

I have never missed a payment, been at my current address for well over 15+ years, on the electoral register. I am stumped as to why its so low?

I do have a car on finance (again never missed a payment for it etc) & a credit card again it does have a balance on it, but as its 0% interest i have spent on it and pay it off a bit each month as it works out better than putting the money into a savings account.

Thats the only reason I think it could be so low, but surely if i am paying it off a bit each month (well above monthly min repayments) it shouldn't be an issue, so why is my score low? Is there anyway to improve it?

I am looking at getting a mortgage and now worried I may be rejected?

[Deleted User]

The score is fictional. Ignore it.

Check that all the data is right, you're on the ER and ultimately look at reducing your debt, especially the car finance.

Experting

It looks like the data is all correct on there, I only have about £450 on the credit card left and just over 10K on the car finance.

I however do not want to reduce the car finance debt as I am looking to getting rid of the car within the next year to get a new car on a cheaper deal (get family discount on car).

[Deleted User]

Mortgage lenders will take existing debt into consideration when determining how much you could borrow - the less debt, the better.

If you're going to be carrying debt when you come to apply for a mortgage, make sure you use a decent broker, so it can be placed appropriately.

Chappaz

It's not necessarily low. Like most credit agencies, the upper part of the scale is very top heavy.

There's a thread on here somewhere where people compared scores, but I think the difference between 3/5 and 5/5 is only a few dozen points.

I believe Callcredit's system (which is behind noddle) has a maximum score of 710, so if you looked at it in terms of percentage, you'd be at 82% - which is pretty good.

But as mentioned above, the scores are pretty meaningless. Every lender has their own scoring system and do not use the agency's algorithms. It's a very rough guide at most.

Pixie5740

Are you going to be applying for a mortgage with Noddle? No you are not so who cares how they rate you as a borrower. Each lender has their own way of scoring you which is partly based on your credit history (note that's history i.e. how you've handled credit in the past, not score) as well as affordability and past dealings with the lender in question.

Dobbibill

I agree with PPs - don't worry about your score. Noddle view you like that, the number is based on their view. You are not going to be asking them for a mortgage.

All lenders have their own scoring system, they do not see nor care about the score you have/can see off the CRAs.

Keep saving towards the deposit, keep paying off existing commitments, use a good broker when you are ready to get a mortgage.