Credit Score "Fair" First Time Check

Mediamonarch

I have never done a credit check on myself in my life but I thought I would today with "Natwest Credit Score" checker as I may be planning on applying for a mortgage next year. My score came back around 580 which is considered "fair". I always assumed that my score would be in the green considering I have never been in debt in my life and have never taken out a credit card or a loan, student loan or anything like that as far as I can remember. It recommends that I register to vote and fair enough I have never done this but I used the "Credit score predictor" and that will only raise my score by approximately 7 points?. It also told me that "Credit Limit" may be impacting my score and that I should get a credit card to raise my score?. I was always under the impression that taking out a credit card no matter what would have a negative impact on my credit score. Pardon my ignorance but it is my first time looking into all of this so any new information is greatly appreciated on how I am able to achieve a "good" score. 

GrumpyDil

Credit scores as such are perceived to be pointless but in order to be able to assess your ability to manage credit lenders examine how well you handle your existing credit availability. 

If you have never had a credit card or credit facility they have nothing to base their assessment on. 

I have two young adult children and made sure that as soon as they were old enough we put their phone contracts into their names and made sure they were on the electoral role to start the building some history.

The older one has a credit card which she clears every month. The younger needs to settle a little before doing that. 

Mediamonarch

GrumpyDil said:

Credit scores as such are perceived to be pointless but in order to be able to assess your ability to manage credit lenders examine how well you handle your existing credit availability. 

If you have never had a credit card or credit facility they have nothing to base their assessment on. 

I have two young adult children and made sure that as soon as they were old enough we put their phone contracts into their names and made sure they were on the electoral role to start the building some history.

The older one has a credit card which she clears every month. The younger needs to settle a little before doing that. 

I have had a phone contract in the past (around 2015) but I never missed a payment for that and always had the money in my bank to pay the monthly direct debit so if my current credit score is based solely on this (the only thing I can think of) then I do not really understand why it is not better than it is 

MorningcoffeeIV

You credit score is fictional. It doesn't matter in the slightest what it is. 

Get a credit card to build your history, get on the ER and just change your bills and card responsibly.

Your score will drop further but that's fine as you'll be more attractive to lenders..

Brie

As the others have said - register to vote and get a credit card to build your credit history.  

I'm assuming you bank with NatWest if you have used their credit checker.  It may be worthwhile to get an appointment with them and ask for an informal chat about mortgages.  They should be able to do a soft check of your history (so no trace) and look at how you've handled you account with them and give you some ideas about what you need to do or if you need to wait an extra year or something. 

I did this when we started planning to move a few years back.  We already had a mortgage but it was all online so I went to a high street bank where I had an account and had a very helpful chat with one of their account managers.  She pointed out what was on my credit history that would cause problems and what might stop that bank or any other not wanting to give us a mortgage even though it would be for less than the one we already had.  She recommended that I port my mortgage with my provider as being the best way to manage the situation.  It was all very informative.

Mediamonarch

Brie said:

As the others have said - register to vote and get a credit card to build your credit history.  

I'm assuming you bank with NatWest if you have used their credit checker.  It may be worthwhile to get an appointment with them and ask for an informal chat about mortgages.  They should be able to do a soft check of your history (so no trace) and look at how you've handled you account with them and give you some ideas about what you need to do or if you need to wait an extra year or something. 

I did this when we started planning to move a few years back.  We already had a mortgage but it was all online so I went to a high street bank where I had an account and had a very helpful chat with one of their account managers.  She pointed out what was on my credit history that would cause problems and what might stop that bank or any other not wanting to give us a mortgage even though it would be for less than the one we already had.  She recommended that I port my mortgage with my provider as being the best way to manage the situation.  It was all very informative.

I actually bank with Santander, I only did the Natwest "credit check" because I saw an advert for it and it said that I didn't need to be a Natwest customer but yes I could go to my local Santander and ask for a talk

400ixl

The credit score is there to sell you their products to improve your fictitious score. No one see's it apart from you and them.

When it comes to getting credit they look at your transactions and have their own criteria for whether they accept or decline.

It is very much work checking all of the credit reference agency reports each month to check the facts are correct, just ignore the scoring and the push selling to improve it.

theoretica

Sounds like you don't have any negatives in your credit report, but also don't have many positives - no history of borrowing money and repaying it again.  If you want a credit card, you might find your own bank is easiest to get one from as they have more information about your finances than your thin credit record. Of course, set up a direct debit to ensure no interest is ever due and avoid the mischance of a negative on your credit report!