DD monthly or quarterly effect on credit score

I'm trying to boost my credit score by setting up a direct debit to pay my water bill.

I have the choice of setting up the direct debit as a monthly DD or a quarterly DD – does the regularity of a DD, ie monthly versus quarterly, affect credit scores differently?

Comments

  • la531983
    la531983 Posts: 1,672
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    edited 18 October 2023 at 9:37AM
    No.

    The three digit score is a meaningless metric anyway based on absolutely nothing, that no lender sees. Lenders will see you have utility accounts (assuming they report - not all do) just like almost everyone else has and wont bat an eyelid at how it is paid.
  • What is important is not the credit score number but that you don't fall behind with any payments, and that you - ideally - have no longer term debt (mortgage excepted). You should check your credit files regularly, and you can do this for free.


  • As above - ignore the score and focus on the actual data on your credit files.

    Not all utilities report to credit files, but if yours does then making sure you pay your bill on time is what counts. Paying by DD is usually cheaper but it isn't required if you pay on time by some other means.
  • jpsman
    jpsman Posts: 65
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    edited 18 October 2023 at 11:07AM
    Thanks all. The reason I'm asking is I've been opening a fair few current accounts in a short space of time just to get the switching incentives. I knew this would lower my credit score for a while, and I accepted that. Experian shows it lowered from 'excellent' to 'fair', and as I have paid all bills and credit on time, I'm just trying to give it a bit of a boost. I haven't used my credit card for years, so I'll try that too (and of course pay it off in full with the DD I already have set up for that). 

    Any other tips for someone who already pays all their bills on time would be most welcome!
  • northwalesd
    northwalesd Posts: 1,132
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    jpsman said:
    Any other tips for someone who already pays all their bills on time would be most welcome!
    Probably the best tip I've learned from the MSE forums - don't worry (unduly) about your credit score.
  • 400ixl
    400ixl Posts: 2,659
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    Score as people have said is fictional and designed for the CRA's to be able to sell you services.

    As long as you are paying all DD's on time then it makes no difference if it is monthly, quarterly or annually.

    Does your credit card report to the CRA's? I have one that doesn't (from a major bank) so utilising it is in no way beneficial to anyone other than the issuing bank. If the card also only has a small limit, then going into a higher percentage of utilisation can be a negative rather than a positive, so be careful on that side.

    Personally I would just get on with life and just make sure everything is paid on time and no negative markers appear on your file.
  • jpsman said:
    Thanks all. The reason I'm asking is I've been opening a fair few current accounts in a short space of time just to get the switching incentives. I knew this would lower my credit score for a while, and I accepted that. Experian shows it lowered from 'excellent' to 'fair', and as I have paid all bills and credit on time, I'm just trying to give it a bit of a boost. I haven't used my credit card for years, so I'll try that too (and of course pay it off in full with the DD I already have set up for that). 

    Any other tips for someone who already pays all their bills on time would be most welcome!
    Just to reiterate, your credit score is meaningless - ignore the numbers and the ratings (excellent/fair/etc). These are marketing tools provided by the CRAs to try and manipulate you into taking out credit products (which they get a commission for).

    Lenders use the data in your file to make their lending decisions. Your repayment history data is what is most important. The number and age of hard credit searches will also impact things to a lesser degree, but the effect of this will diminish in a few months. Basically don't stress over the score changing and focus on responsibly managing your credit facilities like you already are.
  • jpsman said:
    Thanks all. The reason I'm asking is I've been opening a fair few current accounts in a short space of time just to get the switching incentives. I knew this would lower my credit score for a while, and I accepted that. Experian shows it lowered from 'excellent' to 'fair', and as I have paid all bills and credit on time, I'm just trying to give it a bit of a boost. I haven't used my credit card for years, so I'll try that too (and of course pay it off in full with the DD I already have set up for that). 

    Any other tips for someone who already pays all their bills on time would be most welcome!
    If you really have not used your CC for years then, when you do, do check that the DD is still in force.
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