Credit score

ejeavons

Hi all,

I'm wondering if someone might be able to advise please.

My credit score, checked on Noddle, ClearScore and Experian, is by all accounts not great, and I can't figure out why. I have one bank loan, one credit card and car finance, and nothing else.

I'm beginning to wonder if the bank loan is the issue - it was a specific type of loan taken out to self-fund a year of higher education and so it was set-up that payments for it did not begin until 12-months after the first draw down. I have not missed any payments at all since they began, nor have I missed any payments on my other credit and in fact I have cleared car finance for my first car (though that was simply replaced by the current car) and cleared early some finance initially taken out for a mobile phone. I also pay my phonebill on time and in full every month, via DD, so I can't see that being an issue.

I feel like I have enough up-to-date finance to be building a good credit rating, and no adverse data, so I can't understand the below...

I'm currently in the process of moving into a rented property and haven't had any problems with that, however I was declined the 0% credit by one of DFS's lenders (the second lender they checked accepted me) and I'm wondering why this might be?

Any advice would be greatly appreciated.

Thanks in advance!

[Deleted User]

Your credit scores are made up numbers. Ignore them.

There's nothing that you've said that would give lenders particular cause for concern. Make sure that you're using the card and clearing in full each month and that you're on the ER. Time will do the rest.

The only other thing to consider is whether you're carrying too much debt compared to your income.

MovingForwards

You have a loan, a credit card and car finance.

What is your income level against your debt ratio.

How do you pay your credit card off, monthly or minimum payments.

You then attempted to take on furniture finance.

Again, look at your income to debt ratio plus other outgoings (food/rent/petrol/car stuff/clothes/going out/misc)

Credit score means nothing, credit history and maintaining it means a lot.

ejeavons

Thanks both.

Debt totals £17.5k and annual income if £41k... so I assume that means my debt ratio is ok?

I don't clear credit card each month which is something I know I need to do - I pay well more than the minimum amount however.

I'm on the ER at the current property and will make sure to move over when I move into the rental property!

[Deleted User]

Affordability is going to be your main issue - a high debt level and not clearing your card each month.

I would prioritise getting on top of your card debt.