Don't think much of credit ratings!

takman

P.Pea wrote: »

I find all your answers sheepish. Should have a better credit scoring as I have not burdened myself for years with unecessary credit. Just because a person lives within their means makes them a better bet in my eyes. They know how to handle money. Your comments are abusive and unthoughtful. You have no idea who or what I am or represent. You all assume to much, or are just trolls. Simple as that.

Not using credit at all doesn't make you better at managing money.

Using credit to your advantage is the best way to manage money. Anyone can live their live without taking out credit but the people who credit responsibly are much likely to be better off.

Firstly most people unlikely to be able to buy a house outright and have to rent all your life with nothing to show for all those payments over the year. If you get a mortgage you may pay a little interest but the value of your house will increase over the years and after 25 years you have a house worth more than you paid in total and no more rent.

Credit cards offer section 75 protection so this protects you when things go wrong, they also offer cashback so you effectively get things cheaper than other people without one, or make money on business expenses. You can also borrow money at 0% interest then keep it in the bank earning interest, so making a profit.

So it's fine you don't want to use credit and it's good you not in debt but it doesn't mean your way is the best way.

Don80

P.Pea wrote: »

I find all your answers sheepish. Should have a better credit scoring as I have not burdened myself for years with unecessary credit. Just because a person lives within their means makes them a better bet in my eyes. They know how to handle money. Your comments are abusive and unthoughtful. You have no idea who or what I am or represent. You all assume to much, or are just trolls. Simple as that.

There's no need to be rude, the answers you got are actually good and helpful, if you take the time to read them.

"A better bet in your eyes" - banks are not assessing what is a good bet in your eyes. They are assessing how much of a risk you are to them. The only way they have to do that is to look at how you managed credit in the past. If they can't assess that then you are a higher risk because they just don't know. That's the point.

Think of it like this: if your best friend asked for a loan of £500 would you agree? Likely you would consider not just whether you have the money, but your friend's circumstances. Is he responsible? How likely is he to pay you back? That's a bit like what CRA's are used for - to provide that information. Your position is more akin to a stranger on the street asking you for a loan of £500, you don't know them from Adam so you'd say no. That's what having no credit history is like to a bank.

My suggestion would be to take out a credit card at whatever APR, manage it well, and have a look again in 6 months and you will see you have better options, because by then you will have a history.

cjmillsnun

OP I think this guide by Martin is what you need to read. Particularly note this passage

While a poor history counts against you, so does having little credit history as it makes predictions less certain.

chappers

I don't get the concern, if you have managed without credit and don't want any, why are you a) concerned about your file b) even more concerned about a fictional number.
I haven't taken any unsecured credit for over 20 years, nor do I intend to in the future and as a result don't really care about my credit file and certainly don't care about my score, as long as it's clean so I have the freedom to manage my secured lending.

P.Pea

Thanks to EachPenny, takman, cjmillsnun for unbiased, quantitative answers. All the rest were biased. You all missed the point. I had 860 one month then 5 months later ish 664 having made no changes. Pretty difficult living with something that changes 20% for making no changes. Can be quite depressing for some. In fact don't bother is my estimation. We never had it in the 70's and as far as I can make out it has made money lending a big business for the sharks. Legitimate thievery is what I would call it. The poorest pay the most..Yeah great idea!

[Deleted User]

P.Pea wrote: »

You all missed the point. I had 860 one month then 5 months later ish 664 having made no changes. Pretty difficult living with something that changes 20% for making no changes.

You are still missing the point.

It should be no more difficult to live with than hearing that unicorns are less popular than they used to be, for no reason.

Pixie5740

If you're going to get depressed over a marketing tool (your Experian credit score) then you might want to consider visiting your GP. Someone is missing the point and it's not us. You have been repeatedly told on this thread no lender can see never mind use your Experian credit score and since Experian don't lend money who gives a flying fig whether they rate you as good, bad or indifferent. Something you would have known if you took the time to read the very first thread on this board.

https://www.moneysavingexpert.com/loans/credit-rating-credit-score

FYI the modern day credit reference agencies started in the 1970s.

[Deleted User]

P.Pea wrote: »

Thanks to EachPenny, takman, cjmillsnun for unbiased, quantitative answers. All the rest were biased. You all missed the point. I had 860 one month then 5 months later ish 664 having made no changes. Pretty difficult living with something that changes 20% for making no changes. Can be quite depressing for some. In fact don't bother is my estimation. We never had it in the 70's and as far as I can make out it has made money lending a big business for the sharks. Legitimate thievery is what I would call it. The poorest pay the most..Yeah great idea!

The wind must have changed direction too much or there was a different phase of the moon that month.

The score is entirely fictitious and needs to be ignored since no one sees it (and frets over it!!) but you.

Something must have changed on your files though - credit balance, overdraft, search on your account...

If you're that worried query it with the CRA - but be prepared for them to upsell you their monthly chargeable packages

System

P.Pea wrote: »

The poorest pay the most..Yeah great idea!

It has nothing to do with being poor and everything to do with being a higher risk. If you are poor you are more likely to default so the interest rate reflects that. Subprime payday loans with four figure interest rates have interest rates that high because of the high number of defaults and that interest rate needs to be that high to ensure that the lender actually makes some money. Everyone else who borrows from a sub-prime effectively pays to cover those who don't repay.