Improve Credit Score

tirednerd

Nasqueron said:

tirednerd said:

Nasqueron said:

tirednerd said:

Nasqueron said:

tirednerd said:

Hi there! Based in Scotland here, and first time I join a forum of any kind!

I just had a financial health check with a senior banker at my bank, and found out I have a lower credit score than expected. Apparently, what impacts it are two things:

1. the fact that I've recently changed address, meaning that I have only been in the electoral registry at my new address for 5 months (unfair, as I've lived in this area of the city for many years now)
2. the fact that I don't have a credit card (again, it feels unfair: do I HAVE to get one?)

Any help on how to improve this would be much appreciated!

The credit score is a gimmick, there is a whole topic on it, right at the top of the page 

What your Credit Score really means - Please read first before posting about a credit score issue.

You would presumably have seen it because it's near the "Create new" option.

Your banker merely used a simple term they know those less financially savvy understand because a simple number is easier to explain than credit history.

You do not want to improve the fake score, you want to build a credit history showing you can borrow and repay responsibly.

Any change like moving address creates instability but these things are quickly forgotten by the computer algorithms particularly if you were previously at a location for a long time.

You don't need a credit card no, but responsible use of one is a good way to build credit history - spend on it, pay in full by direct debit every month. Similarly, a mobile phone contract etc.

The bigger question is why do you care? 

Are you looking to get a loan / mortgage / PCP etc? If so, then build a solid history as above and yes, a CC will help
If it's just a financial check and you are worried about a fictitious number, then don't worry

Thank you, and thanks everyone who's replied! I need a good credit score because I'd like to get a mortgage in the near future. 

What I was offered was to switch from my 'current account' to a 'cashback' account (my bank is RBS), which will cost me about £2 per month but that will give me back £5 every month (for using the app etc) + I think 1% rewards using a Credit Card (which would therefore, as I understand it, be free). I was thinking to go for this option, although it kind of sounds too convenient to be true.        

Please read the link, the score you see is never seen by anyone else, it NEVER EVER EVER EVER plays any part in a decision on your mortgage, only your credit file which the banks score internally (you will never see this number).

The NatWest group reward account is good, I have one, provided you have the 2 DD (make sure you meet the minimum payment - I think the DD has to be over a certain amount) and log into the account, the net £3 a month is nice to have. Banks offer incentives to get you to use them, even if it seems like a loss leader

thank you! so, to sum up, can a credit card help me to get a good mortgage deal, or should I just avoid complicating my life and carry on with my debit card? I currently also have a loan from the bank that I am paying back monthly.

ps. good to know that the cashback thing is not a scam!

 Thank you!

I would recommend a credit card yes, even if you can't get one with benefits like cashback. You could spend literally once a month on fuel or shopping to replace using the debit card, have a DD to pay off in full every month and just do that for a year and it builds a good history of responsible credit use. The loan will also do this but obviously you pay interest so it's not a cost effective way of doing it, provided you pay on time every month it's fine, just obviously pay it off before applying for a mortgage!

This is super useful! thank you very much!