Credit Score not going up

Lunarelle

Hi all,

I have a sim only contract that I'm currently paying. I've had it for a few months now but my credit score is not going up and I don't understand why? I have a low credit score and as such cannot get credit cards or store cards. I have Logbox but have only just set that up and am only a month into paying. I will find out if that's doing anything in 3 days.

Any ideas as to why it's not going up?

Thanks
Luna

[Deleted User]

Because it’s not a number of any significance.

Lenders don’t see, care about or use it in their lending decisions.

Please don’t tell me you took out a LoqBox account in the basis of approving said “score”?

Ben8282

The loqbox loan is probably causing the appearance of your being in debt. How much is it for? How much are the 'repayments'? What is the outstanding balance? Get rid of the loqbox and things may improve for you.

Your credit score is a meaningless marketing tool used by CRA's and should not be taken seriously. Presumably you have applied for credit cards and store cards in order to be able to say that you can't get them. The hard searches shown on your credit files as a result of such applications will not be helping you.

Your ability to obtain credit will depend on your credit history and factors such as being on the ER, employment income and many other factors. Is this SIM only contract the only thing being reported on your credit files apart from the loqbox? No utility bills etc? No current account from your bank?

Get rid of the loqbox ASAP.

gionnetto

Lunarelle wrote: »

I have a sim only contract that I'm currently paying. I've had it for a few months now but my credit score is not going up and I don't understand why? I have a low credit score and as such cannot get credit cards or store cards. I have Logbox but have only just set that up and am only a month into paying. I will find out if that's doing anything in 3 days.

Any ideas as to why it's not going up?

First off, it takes a while (as in: around 6 months!) for your score to go up. Secondly, Loqbox might very well be the only option if you are a newcomer to the UK, or have no credit history. So, if this is the case, please, keep it.

Get on the electoral roll if you haven't already. Join the rental exchange initiative.

The rest just takes time and patience!! :beer:

[Deleted User]

gionnetto wrote: »

First off, it takes a while (as in: around 6 months!) for your score to go up. Secondly, Loqbox might very well be the only option if you are a newcomer to the UK, or have no credit history. So, if this is the case, please, keep it.

Get on the electoral roll if you haven't already. Join the rental exchange initiative.

The rest just takes time and patience!! :beer:

Why waste time and patience building on a fictitious number?

That’s ridiculous advice

cymruchris

I know there are those that don't like Loqbox - but as a user myself it makes perfect sense to me. I'm in a position where I can put aside an amount a month over the 12 month period just as I would a savings account, but at the end have a fully settled unsecured loan with on-time payments on my otherwise sparse history. It shows a period of sustained on-time payments, managing credit (albeit it's not credit) responsibly, and as such your creditworthiness appearance to lenders if you have limited history will be more positive. Just because it's not suitable for the people above, there are people it is suitable for, and you appear to be one of them if your only record is a mobile phone sim card. So - Don't get rid of the Loqbox.

As you've recently started it, I would actually expect your score to go down for the first few months of making your monthly payments, and then as you progress through your 12 month period, I would expect to see it edging back upwards, and on completion to raise a little more.

There are obviously many factors that affect the 'fictitious scores' - but they can give a vague indication of how lenders might currently see you. Yes as many people point out - there are bankrupts with scores of 999 etc. but to be fair, my fictitious number based on my previous history has been relatively accurate in tallying up with my previous credit history.

I have taken a Loqbox for £200 a month - at the end I'll have £2400 to put into a range of accounts they have on offer - and I don't have any problem in doing that.

When I started mine, my score dropped. I'm now 7 months in, and it's been creeping up month by month. But aside from the fictitious score - it will show other lenders that you have the ability to keep to your payments on time, and complete your agreement. For that reason, based on your circumstances, I wouldn't stop it.

You'll need patience - building up the level of history to gain credit in any shape or form takes time. Keep checking the eligibility checkers of Vanquis, Aqua and Capital One every couple of months and at some point, one of them is likely to approve you.

Make sure you're on the electoral roll though - that's very important.

Ben8282

cymruchris wrote: »

I have taken a Loqbox for £200 a month - at the end I'll have £2400 to put into a range of accounts they have on offer - and I don't have any problem in doing that.

.

Yes but the problem is that at the beginning you will appear to have £2400 debt so, if you were to apply for a credit product, all any potential lender would see is that you have £2400 debt and are making repayments of £200 per-month.

Accepted at the end you will have a repaid loan of £2400 on your credit files and £2400 in the loqbox which I have heard is not all that easy to withdraw, but in the short term the loqbox could be damaging.

boo_star

Ben8282 wrote: »

Yes but the problem is that at the beginning you will appear to have £2400 debt so, if you were to apply for a credit product, all any potential lender would see is that you have £2400 debt and are making repayments of £200 per-month.

Accepted at the end you will have a repaid loan of £2400 on your credit files and £2400 in the loqbox which I have heard is not all that easy to withdraw, but in the short term the loqbox could be damaging.

Talk about the blind leading the blind...

PixelPound

Had a look at the LoqBox site and I can see why some people are advising caution - it seems to promise a lot. It also seems the only way you get your money out is either to take out a new bank account or pay then £30 to go into an existing one.

OP is expecting instant results it its still in the first month, so think the advice of experience is good. However what's the point of doing anything other than the bare minimum on this, surely £5pm or £10pm will have the save effect, and an interest paying savings account used for the rest?

cymruchris

Ben8282 wrote: »

Yes but the problem is that at the beginning you will appear to have £2400 debt so, if you were to apply for a credit product, all any potential lender would see is that you have £2400 debt and are making repayments of £200 per-month.

Accepted at the end you will have a repaid loan of £2400 on your credit files and £2400 in the loqbox which I have heard is not all that easy to withdraw, but in the short term the loqbox could be damaging.

As with everyone's credit history - it's the long term that's important for many including myself. I have no intention of taking out any credit over the 12 month loqbox period - my view is very clear - I use it as a savings vehicle, it reports as a loan, at the end it's a completed, settled account with on-time payments. In the future when I do want credit, it can only be viewed as a positive indicator on my history. After all, as everyone says, lenders are only interested in behaviours, and not fictitious scores. My history (alongside my other well managed accounts) will then include this piece of detail that will encourage future lenders to look at my application more favourably.

Creditworthiness isn't something that can be improved overnight, it takes time and patience, and Loqbox is a tool that is suitable for SOME people - it won't be suitable for the majority of people - but for people like the OP - I see the sense in it, but the OP needs to bear in mind that the positive effect of the loqbox won't show until the end of the 12 month term, when everything is settled, and reported as such to the CRA's.

cymruchris

nic_c wrote: »

Had a look at the LoqBox site and I can see why some people are advising caution - it seems to promise a lot. It also seems the only way you get your money out is either to take out a new bank account or pay then £30 to go into an existing one.

OP is expecting instant results it its still in the first month, so think the advice of experience is good. However what's the point of doing anything other than the bare minimum on this, surely £5pm or £10pm will have the save effect, and an interest paying savings account used for the rest?

Bear in mind that loqbox is a commercial company - they aren't a charity - so I understand that somewhere along the line they have to make a profit. That's going to come as a commission payment from any of the banks/accounts that you choose at the end of your period. If you decide to put the money into your own account, it can be done for a £30 fee. There's no difficulty in dong so. I'm happy enough to put my money into one of the nominated accounts when the time comes, as I'm holding the long term view, not the instant fix. I'm not sure whether there's much difference in the amount you choose to put into it, I decided on the maximum, so that it looked like a fairly sizeable loan, but I imagine in the CRA's eyes, it's more about the patterns of repayment, being on time, and settling the account.