Credit score...i'm confused!

jamtart6

I'm not a DFW but hats off to you who are :T, in fact I've never had a debt or a loan in my life and only got my credit card to travel abroad with for emergencys (and used whilst I forgot my debit card pin back in the UK!)...however I saw some good cards on here last year when I was looking to get a credit card and really really struggled as I have no credit rating. However reading several posts recently, I'm wondering if I've got a bad credit score now...as I've:

1. Been refused for 3 credit cards (due to no credit rating)
2. Did not realise the Direct debit wasn't set up to pay off my credit card in full and was charged £12 (boo hiss).

I'm applying for a mortgage soon, will these things have a negative impact on my ability to get a mortgage? Thanks in advance. I'm not sure this is on the right board, but as it is mostly about credit scores I thought it was

katyw

Hi.

The best thing to do is check your credit score with Experian (CreditExpert) or Equifax. You can do it online, or by writing to them. I should think there address is on their websites, and I believe it's only £2 or £3. (Costs more online for some reason!)

This will then tell you your credit score and give you tips on how to improve it. One reason for a poorer score is if you are not on the electoral role which is easy to remedy.

Hope this helps.

K

katyw

Oh, and I've been on a DMP for a couple of years and bought a house with a very competative mortgage in December. This was before the credit crunch, but I shouldn't see you having a problem.

Sammy_Girl

Hi JT,

Banks are in the business to make a profit and as you have little credit this can sometimes be seen by them as a bad thing. I have quite a porr credit history but am now in the process of rebuilding it for when our fixed rate comes to an end on our mortgage. One of the best pieces of advice I was given was to apply for a credit card with a horiffic apr of c.34%. These are aimed at people with poor credit history or litle or no history at all. Use it each month just to buy something small, and then pay it off each month in full. This will then show on your credit report as being paid on time and all paid ok. Over a number of months it will improve your rating.

Hope that helps :j

Good luck

Sammy x

jamtart6

Ah that is a good idea about the evil 34% apr cards. as long as i remember to get my direct debit sorted.

i did do a credit check with experian but couldn't see my credit score that needed to be paid for as extra..is that right?

dhassen

jamtart6 wrote: »

1. Been refused for 3 credit cards (due to no credit rating)
2. Did not realise the Direct debit wasn't set up to pay off my credit card in full and was charged £12 (boo hiss).

these things will have a negative effect. They are likely to affect your mortgage application, but I'm no expert so don't no by how much.

You could go for a sub-prime cc (awful APRs but shouldnt matter) as they are easier to get, and are even designed to build a credit history. Use one to make a small purchase every month, but make sure you have a DD set up to cover the FULL balance every month, so you don't pay interest. In a while, you'll have a nice history.

EDIT: here's some sub-prime cards, if you're interested

Capital One Visa
Monument Visa
Vanquis Visa
Aqua MasterCard

katyw

jamtart6 wrote: »

Ah that is a good idea about the evil 34% apr cards. as long as i remember to get my direct debit sorted.

i did do a credit check with experian but couldn't see my credit score that needed to be paid for as extra..is that right?

I did mine last night online, and I did the credit score one. This is more money (:mad: ) but shows you all the info as on the credit check but gives you a breakdown of your score as well.

I've always done it online (only every 6mths) so don't really know the process of writing to them, and whether this just gives you your score, or your credit report. Someone else on here should know though.

dhassen

I personally don't see the point in a 'score' ....... it's not what lenders use, they all have their own systems and scoring procedures. You're better off being cheap, checking your credit file (either free online trial or £2 each) and saving whatever it costs to get this score...... much more MSE I reckon

Sammy_Girl

jamtart6 wrote: »

Ah that is a good idea about the evil 34% apr cards. as long as i remember to get my direct debit sorted.

i did do a credit check with experian but couldn't see my credit score that needed to be paid for as extra..is that right?

Hi JT,
I have a Capital One card and set up a DD so that it pays off in full everymonth. Though I never spend more than about £25 on it :rotfl:

You need to pay for the full credit report as it will then give you a full list of what is on your credit file. The best ones to check are Experian and Equifax as they are the reference agencies most lenders use. I believe that you can get a 30 day free trial with Experian on the internet. Personally I subscribe to checkmyfile.com and pay £14.95 every quarter. It has Callcredit (who are rather naff and aren't used that much by lenders) and Experian, but not Equifax. I prefer it this way so that I can check my details every month to see if there is anything amiss. Also nice to see if there have been any frauduent activity. Not happened to me and I don't think any fraudster would get very far with my credit history :rotfl:

Mind you, my mortgage isn't on either of these two, so I'm sure it must show on the Equifax report. Note to self - must check the Equifax report!!

When are you looking to get a mortgage? Is it soon or a couple of years away?

Sammy x

GeorgeUK

Don't bother about trying to find out your credit score - different companies work it out to different criteria. You need to pay to see your score as you say and really isn't worth the money.

Check how many credit checks you've had in the last 6 months. 3 is usually ok before it starts to damage your credit score. If you will be looking to get a mortgage in a few months, check how many of these checks will still be remaining. You don't want to appear desperate for credit when it comes time for them to do their credit check.

dhassen

GeorgeUK wrote: »

Don't bother about trying to find out your credit score - different companies work it out to different criteria. You need to pay to see your score as you say and really isn't worth the money.

Check how many credit checks you've had in the last 6 months. 3 is usually ok before it starts to damage your credit score. If you will be looking to get a mortgage in a few months, check how many of these checks will still be remaining. You don't want to appear desperate for credit when it comes time for them to do their credit check.

pretty much exaclty what I said