Does having zero income affect my credit rating?

agent69

I've just been through the credit club application but couldn't use £0 as my anual income (early retiree and living off savings until pensions kick in). I put in £1,000 as this was the lowest figure it would accept, but wondered what affect nil income would have on my credit score?

etienneg

Credit scores are made up by the CRAs and are totally irrelevant numbers as no-one but you will see them. As the CRAs don't know your income, the fictitious scores they make up will not be affected by it being zero.

Those who lend money (credit card companies, banks, finance companies, etc) are highly unlikely to lend you money if you have no income. They have no idea of any savings you may have as this is not reported to CRAs. Hence as far as they can see you have no means of paying back anything you borrow. (That's why the credit club has a minimum income, below which they think it's irrelevant, as no-one will lend to you anyway.)

[Deleted User]

living off savings is not income (you could have an emergency tomorrow and need to use them and then where would you be?) so when you apply for a card or loan you have to report £0 income and so will inevitably not get any offers.

agent69

Deleted_User said:

living off savings is not income (you could have an emergency tomorrow and need to use them and then where would you be?) so when you apply for a card or loan you have to report £0 income and so will inevitably not get any offers.

Enormous stash of savings, but no chance of getting a different credit card until I have £25k in pension income in a few years time.

As Jimmy Greaves use to say 'it's a funny old game'

[Deleted User]

If you have such an enormous stash, why didn't you have cards before or whatever you need to credit check for? Why indeed do you even need to do anything, just use your stash?

agent69

Deleted_User said:

If you have such an enormous stash, why didn't you have cards before or whatever you need to credit check for? Why indeed do you even need to do anything, just use your stash?

My current bank appear happy for me to have had a credit and debit card for the last 30 years. I was just curious why the credit club said my credit score was >960, but I had zero chance with a credit card application.

mjm3346

agent69 said:

Deleted_User said:

If you have such an enormous stash, why didn't you have cards before or whatever you need to credit check for? Why indeed do you even need to do anything, just use your stash?

My current bank appear happy for me to have had a credit and debit card for the last 30 years. I was just curious why the credit club said my credit score was >960, but I had zero chance with a credit card application.

Did you have zero income when you took them out?

The_Fat_Controller

I would think it is obvious, you have no visible income to service any debt.

You could blow your savings at the bookies at any time.

It really does how these "scores" are absolute rubbish.

MattMattMattUK

agent69 said:

I've just been through the credit club application but couldn't use £0 as my anual income (early retiree and living off savings until pensions kick in). I put in £1,000 as this was the lowest figure it would accept, but wondered what affect nil income would have on my credit score?

Technically that is application fraud and could result in a CIFAS marker, although it is so low the might just presume that you are not credit worthy. In reality the reason that £1,000 is the lowest that it would accept is that it would be insane to lend money to someone, or give them a credit facility, when they have zero income. 

The CRAs have no record of your income, you are asked to submit it as part of an application and if relevant you are asked to back that information up post application. 

agent69 said:

My current bank appear happy for me to have had a credit and debit card for the last 30 years. I was just curious why the credit club said my credit score was >960, but I had zero chance with a credit card application.

That is because at the point of application you passed and currently you remain in good standing so have no need to be reassessed, however you might have also seen the complaints where Barclaycard lowered people's credit limits to very low amounts and then said that if people wanted higher limits they will need to prove their income. Expect much more of this from all card providers over the next few years.

Also, as others have said, your credit score is a made up and meaningless number. 

p3ncilsharpener

MattMattMattUK said:

agent69 said:

I've just been through the credit club application but couldn't use £0 as my anual income (early retiree and living off savings until pensions kick in). I put in £1,000 as this was the lowest figure it would accept, but wondered what affect nil income would have on my credit score?

Technically that is application fraud and could result in a CIFAS marker, although it is so low the might just presume that you are not credit worthy. In reality the reason that £1,000 is the lowest that it would accept is that it would be insane to lend money to someone, or give them a credit facility, when they have zero income. 

The CRAs have no record of your income, you are asked to submit it as part of an application and if relevant you are asked to back that information up post application. 

agent69 said:

My current bank appear happy for me to have had a credit and debit card for the last 30 years. I was just curious why the credit club said my credit score was >960, but I had zero chance with a credit card application.

That is because at the point of application you passed and currently you remain in good standing so have no need to be reassessed, however you might have also seen the complaints where Barclaycard lowered people's credit limits to very low amounts and then said that if people wanted higher limits they will need to prove their income. Expect much more of this from all card providers over the next few years.

Also, as others have said, your credit score is a made up and meaningless number. 

They didn't apply for credit, they made an MSE Credit Club account.

agent69

The_Fat_Controller said:

I would think it is obvious, you have no visible income to service any debt.

You could blow your savings at the bookies at any time.

It really does how these "scores" are absolute rubbish.

I accept that in theory my savings could disappear at any tme, but the same applies to income, where I could declare a lavish salary and get made redundant the day after.