very

boo_star

patrick1982 wrote: »

if its not a factor why does capital one give me a message sorry your score is too low ?!

It must be a factor somehow, i believe that all these companies (Experian, Equifax, Transunion) do use somekind of scoring and just copy that system from the USA (where they from)........

If they're referring to anything it'll be their own internal scoring.

But I'll eat my hat if you can get a screenshot from CapitalOne (UK) that says that "your score is too low."

patrick1982

next time when i apply for something (not anytime soon) i post it here. I read it so many times.

I really believe they just copy the US System (at least there u know u need like a 650 score to get approved not some vage info about your payment history)

boo_star

patrick1982 wrote: »

next time when i apply for something (not anytime soon) i post it here. I read it so many times.

I really believe they just copy the US System (at least there u know u need like a 650 score to get approved not some vage info about your payment history)

No, "they" don't.

And I say that as a former employee of a high street bank with the discretion to override the computer.

[Deleted User]

It will be their own internal scoring not the make believe CRA scores.
I think you’re reading literature that points to USA credit scoring and FICO and the like.

None of that applies here in the UK.

As for the loan - taking a loan (if any amount of any period of time) screams of desperation to most lenders and that you cannot get by day to day money wise.

Hence it not being good for you.
It may well “improve your score” but a lender will look at it and alarm bells will start ringing.

cymruchris

!!! wrote: »

As for the loan - taking a loan (if any amount of any period of time) screams of desperation to most lenders and that you cannot get by day to day money wise.

So the point I made is about having a settled loan - fully paid - all payments on time - surely for someone with little or no credit history that's a good thing?

While going through the process - of course it won't help your cause in the short term, as you'll be making payments, and an amount of debt will be showing as outstanding - but that's not what it's designed to do. It's not a quick fix to get you a credit card next week - it's a way of showing commitment, reliability and the ability to complete your obligation over a longer period of time.

So if in two years I applied for a credit card - person A who has nothing much on his or her files who banked the money and has 39p interest - and person B who has a record of paying something back, on time, every time, and totally satisfies the commitment they made - who might get the better chance of being told 'yes'? (It's not recorded as a 'payday loan' by the way) I know which person my money would be banking on....

patrick1982

cymruchris wrote: »

So the point I made is about having a settled loan - fully paid - all payments on time - surely for someone with little or no credit history that's a good thing?

While going through the process - of course it won't help your cause in the short term, as you'll be making payments, and an amount of debt will be showing as outstanding - but that's not what it's designed to do. It's not a quick fix to get you a credit card next week - it's a way of showing commitment, reliability and the ability to complete your obligation over a longer period of time.

So if in two years I applied for a credit card - person A who has nothing much on his or her files who banked the money and has 39p interest - and person B who has a record of paying something back, on time, every time, and totally satisfies the commitment they made - who might get the better chance of being told 'yes'? (It's not recorded as a 'payday loan' by the way) I know which person my money would be banking on....

how would it look like if i decide to pay off the loan in 1-2 month (as soon as its reporting) good or bad ?

JohnMl88

patrick1982 wrote: »

how would it look like if i decide to pay off the loan in 1-2 month (as soon as its reporting) good or bad ?

Just get a sim only contract, don’t waste your money

cymruchris

patrick1982 wrote: »

how would it look like if i decide to pay off the loan in 1-2 month (as soon as its reporting) good or bad ?

Personally I would let it run its course - I don't think there's an option to pay it early - it's either pay it for the course - or cancel it and return your savings. - the latter wouldn't look so good I'm sure. I'll be happy to have a settled/satisfied loan with no issues whatsoever sitting on my history at a time when I've not yet got the clout to get a decent credit card. (Not that I want one - but I do want a mortgage at attractive rates in a year or two)

cymruchris

JohnMl88 wrote: »

Just get a sim only contract, don’t waste your money

That's one option - but it doesn't suit everyone. It's another possible tool in the toolbox of ideas - it'll be good for some - not for others.

patrick1982

i did get one from Sunshine Mobile.......sim only but doesnt show on my file as well so far.

Btw little update today i got invited for the Credit Builder with Cashplus.......