Credit cards not reporting to CRAs - should I get a new credit card?

techwatcher

Hi,

I have two credit cards, a Visa card and a Mastercard and neither are reporting to the CRAs. This may be because I have had both for literally decades (?) 

I use one card regularly and clear the balance each month. I am mortgage-free and my credit history is clean.

I have no real need for credit but will probably purchase a car partly using a 0% finance offer next year.

As my credit cards are not reporting to the CRAs could this be detrimental in terms of credit history when applying for credit in the future?

Would it be worth obtaining and using a new credit card to build up a repayment history in this area?

CliveOfIndia

Have you checked all 3 of your credit reports?  Not all lenders report to all 3.

techwatcher said:

This may be because I have had both for literally decades (?) 

I use one card regularly and clear the balance each month.

If a card is not used for an extended period of time, most lenders will usually close the account anyway, so that may explain one of them - if you've had it for years and not used it.

techwatcher said:

As my credit cards are not reporting to the CRAs could this be detrimental in terms of credit history when applying for credit in the future?

It won't be detrimental as such, although if you use the card regularly and always pay in full then you are missing out on building up a favourable credit history - if, indeed, they are not reporting to the CRAs.

techwatcher said:

Would it be worth obtaining and using a new credit card to build up a repayment history in this area?

It could well be a good idea, in order to add some more "good" history to your file.  Although, if your credit file is very thin then you may find you struggle to get accepted for one of the more mainstream cards.  That's not such a big issue - as long as you use the card "properly" then it doesn't really matter if it's a credit-builder card, it'll still do the job in terms of building up a decent history.  But do your existing cards offer any rewards that are of value to you?  Might be something to think about if you were to ditch them in favour of a different card.

But the first thing is to check all 3 of your credit reports - you may well find your existing cards are reported to one agency but not another.

techwatcher

CliveOfIndia said:

Have you checked all 3 of your credit reports?  Not all lenders report to all 3.

Yep, checked all 3 of my credit reports - neither card is being reported.

techwatcher said:

This may be because I have had both for literally decades (?) 

I use one card regularly and clear the balance each month.

If a card is not used for an extended period of time, most lenders will usually close the account anyway, so that may explain one of them - if you've had it for years and not used it.

Both accounts are still open.

techwatcher said:

As my credit cards are not reporting to the CRAs could this be detrimental in terms of credit history when applying for credit in the future?

It won't be detrimental as such, although if you use the card regularly and always pay in full then you are missing out on building up a favourable credit history - if, indeed, they are not reporting to the CRAs.

techwatcher said:

Would it be worth obtaining and using a new credit card to build up a repayment history in this area?

It could well be a good idea, in order to add some more "good" history to your file.  Although, if your credit file is very thin then you may find you struggle to get accepted for one of the more mainstream cards.  That's not such a big issue - as long as you use the card "properly" then it doesn't really matter if it's a credit-builder card, it'll still do the job in terms of building up a decent history.  But do your existing cards offer any rewards that are of value to you?  Might be something to think about if you were to ditch them in favour of a different card.

But the first thing is to check all 3 of your credit reports - you may well find your existing cards are reported to one agency but not another.

My Mastercard does offer rewards of value to me and I plan to retain it. I think I will apply for a new credit card and just use it for fuel for the car.

Many thanks for your thoughts - appreciate it.

CliveOfIndia

techwatcher said:

My Mastercard does offer rewards of value to me and I plan to retain it. I think I will apply for a new credit card and just use it for fuel for the car.

That's probably a good plan.  If you've got a card that gives rewards then it makes sense to carry on using it for the bulk of your spending (assuming you're not paying a fee for it).  Then, as you say, get another card just for fuel or whatever, purely to build up some history.

It actually doesn't matter a great deal how much you spend on the card, within reason.  Just use it regularly, ideally set up a Direct Debit to always pay the full amount, that'll start to build up a track record of favourable history.

I appreciate you coming back and answering the points I raised, that's always rewarding :-)

MrFrugalFever

Have you moved multiple times and not updated the credit card providers? This can cause lenders to drop off your reports. I know that Equifax for example can only display up to 3 addresses within 6 years and the corresponding data held at them.

It is incredibly unusual for a lender to not report to any of the credit reference agencies. By having regular and managed accounts visible for lenders to see when applying for credit stands you in good stead for future applications with best rates/deals etc.

If you're applying for another credit card, use their own eligibility checker first and check that the card benefits you (i.e. the purpose of it).

techwatcher

MrFrugalFever said:

Have you moved multiple times and not updated the credit card providers? 

Thanks for responding but nope. Been at the same address for 25 years and both credit card providers send mail to my address.

I too thought it unusual for them not to report to the CRAs.

Could it be because it's been a long time since I obtained the cards - I have had one card for 40 years and the other for 35? 

~Brock~

It may well be the length of time you have had the accounts open for.  My current account with £8k overdraft facility (not used) has never shown on any CRA reports and it was opened in 1988.