Will my credit score affect my ability to switch energy providers?

mawk86

Hello,

I’ve been researching switching suppliers as my contracted deal has come to an end, however I have heard that some suppliers carry out searches on your credit file, is this true?
My credit score is low due to last stupidity but is on the rise, so I am wary of adding another search that may take it down, and then also adding another check for it to be declined.

[Deleted User]

Your credit score isn't seen or used by anyone except you.

They will just check your credit files. This may be a full search, or just for ID purposes.

Smodlet

Deleted_User wrote: »

Your credit score isn't seen or used by anyone except you.

They will just check your credit files. This may be a full search, or just for ID purposes.

... But you are right to be concerned that a search may impact your credit record. Your "score" is an invention of credit checking agencies to hook people into paying for their reports, imho.

The option to pay a deposit up front should increase your ability to switch exponentially; if you are not offered this, request it.

AndyCF

Smodlet wrote: »

The option to pay a deposit up front should increase your ability to switch exponentially; if you are not offered this, request it.

Although I don't plan on any more 'moves' , I was not actually aware they would do this. It does make a bit of sense though.

I'm sort of thinking this is along a very slightly similar line to opting to pay a fair chunk of voluntary excess on an insurance policy to reduce the premium cost down a bit yes ?

I did used to do this on the cars I've had for £100 or so 'Voluntary Excess', not really sure if it made that much difference or not, it was not that expensive for me anyway. With my luck it probably shaved £5 off the total cost with it. Never had to claim though so not sure.

Back to the topic in hand its quite useful to know the above though regarding energy suppliers, thanks. I guess ultimately if its not visible then there's no harm in asking about it, worst case is "no we don't"

Smodlet

It's not really the same as insurance from a customer's point of view, but from the provider's, yes; it reduces their risk of having to chase bad debt if they already have a "deposit" towards future bills. I have never had to do this myself but have come across it on here several times. It is possibly the only way those with less attractive credit scores may access more attractive tariffs with some or all suppliers.

Once you have secured your new deal with whoever, you then have the opportunity to show them just how good a risk you are by always paying on time, never having a direct debit returned due to insufficient funds, etc., etc. and eventually they may allow you to use up the deposit as credit on your account, I think, but don't quote me on that.

Hope I have helped.

Biscuit_Tin

mawk86 wrote: »

Hello,

I’ve been researching switching suppliers as my contracted deal has come to an end, however I have heard that some suppliers carry out searches on your credit file, is this true?
My credit score is low due to last stupidity but is on the rise, so I am wary of adding another search that may take it down, and then also adding another check for it to be declined.

Yes, any credit provider worth their salt will check your credit worthiness before extending credit to you.

If you have poor credit, the supplier may well demand a refundable security deposit up front.

If you have really bad credit history, don't be surprised if the supplier refuses you credit entirely.
Suppliers usually are able to offer pre-payment meters for those who have been poor habdling credit in the past.

luvchocolate

I switched to Shell energy (previously first utility) I was asked to put down a deposit of £300 which was returned after 6 direct debit payments.