Renting but need to improve credit score of 999

Arleen

JIR wrote: »

With your renting, check Creditladder (can't post link as new). You pay them and they pay your landlord same day. They aren't yet showing on credit reports but their aim is that they will log your rent payments with Experian each month in the same way as banks do with mortgages

I would advice highly agaist it, or sharing that link. What you will be doing is, in essence, sending money to some limited company with zero guarantees of what happens if it dissapears or the company decides to cease trading.

Also they didn't even hire a lawyer to write their TOS, as it comes with nonsense like:

The Mediator will be appointed by application to Ombudsman for Estate Agents.

There is no such thing as Ombudsman for Estate Agents, and even if it existed it would do nothing in the above scenarios.

mwarby

score

m450 wrote: »

I want to buy a house in about a year so anything I can do to get away from 999 would be great please!

A mortgage lender won't care one bit about your credit 'score', what they are looking for
- are you or have you recently been insolvent ?
- affordability, can you afford the repayment, even if rate increases. This is basically salary minus other expenses excluding rent
- deposit, the more the better
- are you paying your bills on time ?
- have you recently used payday loans ? (shows budgeting issues)

Its arguable that having a lot of money going through card (even if paid in full every month) could look like your struggling to afford the costs of living

If your really worried about your score for mortgage purposes, why not get a decision in principle, even if that involves a hard search (which will drop your 'score'), that will drop off in a year anyway. From what you've said I expect you may be pleasantly surprised, the amount offered will be based on affordability, not credit score

john2054

To be honest with you, your score isn't that good, despite whatever numbers it may show, as demonstrated by the fact that you are being turned down for credit cards. I was actually stuck like this about 6 months ago, when i took out a small loan with likely loans, over the year, and have been repaying this off. Now my credit score has gone up, and by the time i repay the loan, it should, have reached new heights. I say should, because nothing is guaranteed in the world of credit. And to be honest with you, this idea of opening up a likely loan, is an expensive way out. An easier way, would probably be just to set up some direct debits, bills broadband water and energy for example, from your current account. Also go on the voting electoral register. If you do these things, and never miss a payment or go overdrawn, you should find your score to dramatically improve over a matter of about 6 months.

Also please be aware that noddle and clearscore also offer credit reports/scores which are completely separate from exerians. And it is well worth looking in to all three, because lenders often to, and whilst you may have a perfect score with experian, the other ones may only be average or poor, because they look at different factors, even though all three use the same source data.

Finally please be aware that it can take up to a couple of months, from your latest credit applications/hard searches, for the data on the score to update. So even if it does look perfect today, In a months or two times, all of those searches will take effect, and the score will most likely go down accordingly!

StopIt

john2054 wrote: »

To be honest with you, your score isn't that good, despite whatever numbers it may show, as demonstrated by the fact that you are being turned down for credit cards. I was actually stuck like this about 6 months ago, when i took out a small loan with likely loans, over the year, and have been repaying this off. Now my credit score has gone up, and by the time i repay the loan, it should, have reached new heights. I say should, because nothing is guaranteed in the world of credit. And to be honest with you, this idea of opening up a likely loan, is an expensive way out. An easier way, would probably be just to set up some direct debits, bills broadband water and energy for example, from your current account. Also go on the voting electoral register. If you do these things, and never miss a payment or go overdrawn, you should find your score to dramatically improve over a matter of about 6 months.

Also please be aware that noddle and clearscore also offer credit reports/scores which are completely separate from exerians. And it is well worth looking in to all three, because lenders often to, and whilst you may have a perfect score with experian, the other ones may only be average or poor, because they look at different factors, even though all three use the same source data.

Finally please be aware that it can take up to a couple of months, from your latest credit applications/hard searches, for the data on the score to update. So even if it does look perfect today, In a months or two times, all of those searches will take effect, and the score will most likely go down accordingly!

Please tell me that Likely Loans aren't a PDL or Short Term Lender?


If they are, you've increased your credit score, but trashed your credit history. Short Term Lending is seen by high street lenders and especially mortgage lenders as a massive red flag.


If you have no credit history the best bet it to approach your bank if you have a long term relationship and ask for a credit card with them (Worked for me, but not 100% assured) or get a "credit building" low limit credit card. Use that for purchases and pay it off in full and your credit history will improve. The score may change but frankly, it is totally irrelevant.


Taking out ANY loans (Especially high rate PDL), or paying for any service to "improve" your credit rating will have the opposite effect to anyone who uses your credit history to decide on credit decisions.

john2054

my loan shows up on my clearscore report, as long term lending.

StopIt

john2054 wrote: »

my loan shows up on my clearscore report, as long term lending.

Check Noddle and the MSE credit club.


I'm not sure if ClearScore separates PDL lending off the loan section. I can't find any section for it anyway on my dashboard. Noddle do have a section for Short Term Loans. If Noddle shows Likely Loans on that section, you've done a boo-boo.

john2054

no it isn't a short term loan, and no it doesn't show up on noddle or experian, as that either. i thought i made that clear. this is a company which is recommnded, and accepted.

StopIt

john2054 wrote: »

no it isn't a short term loan, and no it doesn't show up on noddle or experian, as that either. i thought i made that clear. this is a company which is recommnded, and accepted.

Recommended and accepted By WHO?


I just looked on their site and they have a representative APR of 59.9%!


Yeah, that'll look just dandy on your credit history, a lender of last resort charging interest that'll hurt like hell.


NOBODY on MSE will advise using loans to build credit score, let alone such a loan shark like that.

john2054

you can say what you want, but since taking out this loan, and paying it back without fail, my score with clearscore certainly, has gone up. hopefully it will with experian and noddle too, when i have paid it off fully.

takman

john2054 wrote: »

Also please be aware that noddle and clearscore also offer credit reports/scores which are completely separate from exerians. And it is well worth looking in to all three, because lenders often to, and whilst you may have a perfect score with experian, the other ones may only be average or poor, because they look at different factors, even though all three use the same source data.

Noddle, Clearscore and Experian all use data from a different source. If you look at your actual credit report you may see some difference in the information they hold on you because not all lenders report to all three of them.

john2054 wrote: »

you can say what you want, but since taking out this loan, and paying it back without fail, my score with clearscore certainly, has gone up. hopefully it will with experian and noddle too, when i have paid it off fully.

Taking out a high interest loan is not a good way to improve your credit history (which is what matters). You should just use credit building cards and pay them off each month and this won't cost you a penny.