Affordability very weak - MSE Credit Club

Trina90

Mine is the same. Excellent credit score but very bad affordability.

[Deleted User]

I don't think it is calculated correctly, my credit card affordability is "weak" but my loans affordability is "very good". This is probably because I have 4 credit cards and I use my credit cards as I should and have a high balance (but less than 30% of available) but always clear in full without paying interest or within the 0% terms. I have no loans.

If I used all my available credit cards (£10k) then I'd be in a mess, maybe that's what they mean?



The reality is that I have approx. 3x my credit card balance in savings accounts and have no real need to use either credit card or loans, I just do it for 0% interest whilst gaining a measly 1% on my savings.

 

strawb_shortcake

Loans and credit cards are based on ONS calculations of average outgoings, they already have your income. 
My offer of credit cards is lower than a loan, but I do have two credits,nothing on them but the limit totals around 20% of my gross income.

carolineb23

I have the same issue where my affordability is very low, apparently due to me being likely to have very little disposable income and it really annoyed me so I emailed them about it and they refuse to accept there is a problem with whatever calculation they do. We have a household income of over £110k no debt apart from mortgage and payments are £1230 a month, no defaults ccjs anything really and 999 credit score. Seems completely ridiculous to me. 

[Deleted User]

There's no need to worry about it.

It has no real life impact on anything, any more than your 999 score does.

Simply ensure the raw data is correct.

dr_adidas01

carolineb23 said:

I have the same issue where my affordability is very low, apparently due to me being likely to have very little disposable income and it really annoyed me so I emailed them about it and they refuse to accept there is a problem with whatever calculation they do. We have a household income of over £110k no debt apart from mortgage and payments are £1230 a month, no defaults ccjs anything really and 999 credit score. Seems completely ridiculous to me. 

Yeah that 999 credit score is amazing, so much so that bankrupts can have a score of 999, which in the UK means jack sh@tE as no lender ever uses the score CRA's give you.

PixelPound

Deleted_User said:

There's no need to worry about it.

It has no real life impact on anything, any more than your 999 score does.

Simply ensure the raw data is correct.

True, ignore the score, ignore the affordability measures, ensure the data containing in the credit files is correct and do a budget yourself.

carolineb23

dr_adidas01 said:

carolineb23 said:

I have the same issue where my affordability is very low, apparently due to me being likely to have very little disposable income and it really annoyed me so I emailed them about it and they refuse to accept there is a problem with whatever calculation they do. We have a household income of over £110k no debt apart from mortgage and payments are £1230 a month, no defaults ccjs anything really and 999 credit score. Seems completely ridiculous to me. 

Yeah that 999 credit score is amazing, so much so that bankrupts can have a score of 999, which in the UK means jack sh@tE as no lender ever uses the score CRA's give you.

Never said anything about it being amazing, no need to be rude. Can’t mean completely nothing tho, otherwise  everyone would have 999. 

[Deleted User]

That's like saying horoscopes must mean something, or everyone would be a Libra.

carolineb23

Deleted_User said:

That's like saying horoscopes must mean something, or everyone would be a Libra.

But there are actual parameters for being a specific star sign aren’t there. So if you’re born on 1st April no, you aren’t a libra.