Credit file

Mirander30

I am confused about what to do my credit rating at the moment is a fair score but I would like it to be a very good score I have got a few unused credit cards can I cancel those accounts down or will it affect my credit rating as I don't want my credit to go back down as my 0% interest finishes this year and I would like to apply for other credit cards with 0% interest 

MattMattMattUK

Your credit score is meaningless and no one apart from you sees it, it is a marketing scheme.

Your credit record is what matters, the record of payments made, commitments met, amounts borrowed and how responsible as a borrower you are. Lenders see details of borrowing and payments (or lack of), which is what they care about. They like borrowing within one's means which is paid regularly, on time and without missed or late payments, they dislike the opposite. 

The card market is disrupted at the moment, many 0% cards have rather strict criteria so do not bank on being able to get one. Are you in a position to clear down your debt, or a significant proportion of it ahead of the end of your promotional period? 

born_again

The only thing that interests lenders is your credit history (don't miss payments) your affordability (debt to income ratio) & their appetite to take on more debt.

Sandtree

Mirander30 said:

I am confused about what to do my credit rating at the moment is a fair score but I would like it to be a very good score I have got a few unused credit cards can I cancel those accounts down or will it affect my credit rating as I don't want my credit to go back down as my 0% interest finishes this year and I would like to apply for other credit cards with 0% interest 

Then ask the person generating the score to give you a higher number and pay them their price for doing so... Experian are doing their Instant Boost if you give away your personal data to them.

Credit scores that are shown by Clear Score, Experian, Equifax etc are seen by almost no one and are certainly not used in lending decisions. They are a marketing gimmick used historically to part people from their money and these days used to acquire additional data or sell you leads.

Lenders may well create a score but it is their algorithm based on data from potentially more than one system and is not available for anyone else to see. Two lenders are likely to come to different decisions based on the same data as they have different priorities/preferences. All you can do is ensure your data is accurate and follow the general guidelines knowing that not all lenders will agree. 

Closing accounts will impact your history and so will impact lenders decisions but it can be positive or negative. Unused credit is a complex consideration as lenders like seeing that others trust you and by having more lines of credit you will have a lower utilisation rate. Some lenders however dont like it if your utilisation rate is too low (begs the question why oyu need more) and they'll all consider affordability if you were to go on a spending spree with both your existing lines of credit and whatever they are considering giving. 

sourcrates

In a nutshell, ignore what all the credit reference agencies tell you, all they want is to make you a customer.

If you use credit, use it responsibly, don`t go over your limit, pay your bills on time, avoid any late payments, defaults, or CCJ`s, be on the electoral role, have a steady address history.

Really nothing else matters, don`t overthink things, stick to these basics and you will be accepted or refused credit according to the type of customer the lender is looking for, you can drive yourself nuts trying to please everyone.

J_B

born_again said:

The only thing that interests lenders is your credit history (don't miss payments) your affordability (debt to income ratio) & their appetite to take on more debt.

How do they know your income?

dr_adidas01

J_B said:

born_again said:

The only thing that interests lenders is your credit history (don't miss payments) your affordability (debt to income ratio) & their appetite to take on more debt.

How do they know your income?

Isn't a general question asked when you apply for a product, what is your annual salary? Or the other one is what is your monthly salary or worded monthly take home pay after deductions?

Plus they can check it against anti fraud databases and if they really wanted to they could ask for Payslips or your bank statements to prove your income. I think there's also Experian Median database where banks upload your monthly income on your bank accounts too.