Effect of taking out a mobile phone contract on credit score

pacpac2018

Hi, I have noticed that when a new credit card is noted on my credit file, the score takes a dive. Will taking out a mobile phone contract (a phone and SIM) on contract cause a similar drop in the score?

Willing2Learn

It does not matter if your score goes down, as no one else will see it.

A potential lender scores you against their criteria and policies, using the data held in your credit file, added to the data you submit in a credit application.

So, all you have to do, is to make sure you have a positive credit history of account management

pacpac2018

OK, so I should not worry about that? All my lines of credit are just fine (two current account overdraft facilities, a personal unsecured loan, three credit cards, a PayPal credit, a store card and a SIM only contract), all paid on time, never above the limit, never breach in credit suppliers terms and conditions, no CCJs and no Cifas marks. Total available credit would be about 15% of yearly income.

Willing2Learn

Everything you have stated about your credit history is positive. Just keep successfully managing your credit accounts and everything will look fine. If anybody ever scores you against their criteria, they will only have good data visible and not bad. I am assuming you are on the Electoral Register yeah?

pacpac2018

Nope, cannot get on the Electoral Register (not compatible citizenship)... Anything I can do to mitigate this?

Willing2Learn

Are you an EU citizen? Or are you a qualifying Commonwealth citizen? (see the link below for a list of qualifying Commonwealth countries or British Overseas Territories)https://www.yourvotematters.co.uk/can-i-vote/who-can-register-to-vote

Not being on the ER is quite a big negative...

pacpac2018

I have already checked, not possible....

ywlgy

IMO tying someone's credibility up with his/her eligibility to vote/nationality is stupid. What a discrimination! This system needs a reform.

jimbo26

It's not stupid, in the the eyes of the CRAs it shows stability,, which is a trait they like to see.

[Deleted User]

ywlgy wrote: »

IMO tying someone's credibility up with his/her eligibility to vote/nationality is stupid. What a discrimination! This system needs a reform.

Not really.

It shows they are allowed to reside in the UK and thusly apply for credit products without running up debt that taxpayers then have to settle

pacpac2018

Well, people from any of the EFTA countries have full rights to stay in the UK (same as EU citizens, except for voting and then cannot be registered on the Electoral Register); Iceland, Liechtenstein, Norway and Switzerland.