Good idea to have Direct Debits on Bank account to boost credit rating and if so how many?

money08

Hello,

It seems its a good idea to have Direct Debits on Bank account to boost credit rating and if so how many? What about charity donations via DD etc?

I have about 3 now as I want to delete my rent one and pay via 0% CC. I also deleted my 3 previous charity DDs. I hear tell they reckon 6 is a good figure to ensure no issue with applications and rating. Not that I want anything apart from maybe another bank account.

Peter999_2

Where did you get that idea from?  I've never seen the number of direct debits used in real credit scoring by lenders etc. 

However, a direct debit to a worthy charity is always a good idea.

money08

LOL the gospel that is google OK maybe not credit rating as such, but a good sign when they are snooping to see history before approval?

sourcrates

Makes no difference to anything at all, how many payment methods of any variety you have.

Don`t overthink these things.

MattMattMattUK

Your credit rating is a meaningless number created for marketing purposes, ignore it.

molerat

Direct debits are not reported.  The only thing that is reported on bank accounts is the available overdraft and its usage.  The things you pay with direct debit such as mobile contracts and energy may be reported but the method of payment rarely matters although an energy account paid on actual usage may show as a balance whereas budget DD usually shows as £0 balance.

money08

Ah ok guys. I was led to believe in old age senility that all in/outs that were safe were good as in they could see a history of incomings and outgoings. But then I guess that would require bank approval along with my authority for them to do any direct snooping.

Is there a simple site that explains exactly what a bank/CC etc application really involves as far as applications, or maybe all they do is check electoral roll and debt reports! Be nice to know exactly what they see on a credit application search. I did try checkmyfile who were an awful website and it just didnt work. Apart from actually obtaining ALL my personal details and card details grrrrrrr

Brie

I'd be surprised if you can pay your rent by cc unless you live in a hotel.

money08

Ha yeah did sound a bit optimistic when I called them. Its a housing association.

"If you do not have a bank account we can discuss alternative ways of paying and tell you how one-off payments can be made by debit or credit card."

I guess "one off" probably means only 1mth.

eskbanker

money08 said:

Ah ok guys. I was led to believe in old age senility that all in/outs that were safe were good as in they could see a history of incomings and outgoings. But then I guess that would require bank approval along with my authority for them to do any direct snooping.

Is there a simple site that explains exactly what a bank/CC etc application really involves as far as applications, or maybe all they do is check electoral roll and debt reports! Be nice to know exactly what they see on a credit application search. I did try checkmyfile who were an awful website and it just didnt work. Apart from actually obtaining ALL my personal details and card details grrrrrrr

You can see what is recorded on your credit files via a free check on each (no need to supply card details!):

https://www.moneysavingexpert.com/loans/check-free-credit-report/

The credit checks carried out by institutions will access that data, and what they do and don't see is covered to a certain extent at:

https://www.moneysavingexpert.com/loans/credit-rating-credit-score/#needtoknow1-3
https://www.moneysavingexpert.com/loans/credit-rating-credit-score/#needtoknow1-4

money08

OK guys well thanks for your help. I wont bother doing any more credit file checks after the failed checkmyfile one because usually if you poke around too much you end up with your head above the parapet. I dont actually need any credit or loans etc and I dont wanna tempt fate as I would still like a backup current account at some point.