Credit Score not going up

[Deleted User] · 21 October 2019 at 2:02PM

cymruchris wrote: »

I'm not sure whether there's much difference in the amount you choose to put into it, I decided on the maximum, so that it looked like a fairly sizeable loan, but I imagine in the CRA's eyes, it's more about the patterns of repayment, being on time, and settling the account.

Who cares about how the “CRA’s eyes” view it?

They’re not the ones lending you money.

sourcrates · 21 October 2019 at 2:04PM

You don`t need any of this side show bob rubbish, only you and the CRA thats generates it ever see your made up credit score number, no lender ever see`s it, therefore trying to improve it, is a pointless excercise.

Common sense applies as much here, as in all walks of life, pay your bills on time, register on the electoral role, don`t move address too often, don`t miss payments, don`t borrow more than you have too, most creditors like stability and consistancy.

It must be common knowledge by now that credit scores are used as marketing tools, its beyond me why people are still so obsessed with them.

[Deleted User] · 21 October 2019 at 2:10PM

sourcrates wrote: »

It must be common knowledge by now that credit scores are used as marketing tools, its beyond me why people are still so obsessed with them.

Because TV says so.

Then banks use terms like “credit scoring” and it thh hi rows confusion into it.

And when you’re declined a credit product, most letters advise you to “check your score” on the CRA’s.

Ben8282 · 21 October 2019 at 5:28PM

boo_star wrote: »

Talk about the blind leading the blind...

What is that suposed to mean?

murrays2 · 21 October 2019 at 8:15PM

It is a fictional, made up marketing number.

Best to have your accounts up to order and in good standing, rather than focusing on a mythical number.

Lunarelle · 22 October 2019 at 2:00PM

Hi guys. Thanks for all the discussion, it’s quite confusing for me but I think I understand most of it. I’ve had to move around quite a lot because of ill health or having to care for family members. I haven’t been given the best start in life and was not afforded what most are so I try to get advice where I can but everyone has such opposing views to everything. I’m a bit sad that my sim only contract is apparently pretty useless to lenders. It’s an expense I need anyway but I don’t feel encouraged that this is not an example of how I can pay consistently.

I got LOQBOX because it was the only option I had among lenders. It does not show up on my clear score as a loan, so I don’t really know if it is affecting it in a bad way. I just received my new score today and it has gone up by 15 which I assume this is LOQBOX or my electric bill that I have just started. (I just moved into a new flat) The score is important to me because it helps me to visualise what lenders are seeing. I dont understand why they won’t lend to me but maybe when I see this number go high enough it will be a nice indication that I can try for credit cards again to build even more. I understand that people are saying they don’t always reflect properly, but for me it does. I have a low score, and lenders are not lending to me. That makes sense to me.

LOQBOX was a good choice for me. I did not walk into it lightly, I read all the T&Cs and thought about it. I went for this because I could afford £20 a month. I’m an apprentice and could just squeeze this amount in. Perhaps when I get a fully paid job I will have a better time with lenders.

[Deleted User] · 22 October 2019 at 2:06PM

Lunarelle wrote: »

The score is important to me because it helps me to visualise what lenders are seeing.

The problem is that it doesn't. Lenders don't see that score at all and they don't interpret you data in the way that the CRAs do.

There are ways to increase the score in the medium term, but they involve actions that will mean lenders won't lend to you for years to come.

If the LOQBOX account is now showing on your credit files, lenders will not see either, meaning that the extra 15 points is simply due to it being a Tuesday.

As you start to get a reliable income, tr for a sub prime credit card to build some history. Be warned that it will however drop your score, hence the advice not to look at it.

PRAISETHESUN · 22 October 2019 at 2:40PM

Lunarelle wrote: »

Hi guys. Thanks for all the discussion, it’s quite confusing for me but I think I understand most of it. I’ve had to move around quite a lot because of ill health or having to care for family members. I haven’t been given the best start in life and was not afforded what most are so I try to get advice where I can but everyone has such opposing views to everything. I’m a bit sad that my sim only contract is apparently pretty useless to lenders. It’s an expense I need anyway but I don’t feel encouraged that this is not an example of how I can pay consistently.

I got LOQBOX because it was the only option I had among lenders. It does not show up on my clear score as a loan, so I don’t really know if it is affecting it in a bad way. I just received my new score today and it has gone up by 15 which I assume this is LOQBOX or my electric bill that I have just started. (I just moved into a new flat) The score is important to me because it helps me to visualise what lenders are seeing. I dont understand why they won’t lend to me but maybe when I see this number go high enough it will be a nice indication that I can try for credit cards again to build even more. I understand that people are saying they don’t always reflect properly, but for me it does. I have a low score, and lenders are not lending to me. That makes sense to me.

LOQBOX was a good choice for me. I did not walk into it lightly, I read all the T&Cs and thought about it. I went for this because I could afford £20 a month. I’m an apprentice and could just squeeze this amount in. Perhaps when I get a fully paid job I will have a better time with lenders.

As above, lenders DO NOT see your score. It has no bearing whatsoever on your ability to get credit whatsoever. It isn't even a good indication of the state of your "financial health" as it were - there are plenty of stores on the forums about people with very poor "scores" getting mortgages and people with perfect 999 scores being declined for sub-prime credit cards. It fluctuates for any and no reason and should be disregarded at all times.

In a nutshell what matters most is a solid credit HISTORY. Managing credit responsibly is the key thing lenders are looking for. Getting a credit card, making a few small purchases and then paying it off in full is the best way to do this. There's no need to pay fees or use "credit building" services to do this, when you can do everything by yourself. The fact you say that your LOQBOX account doesn't even show up on your files shows you that it is pretty much worthless - if it's not on your files then lenders don't see it!

Personally I'd recommend using a few eligibility checkers and see what kind of credit cards you might be able to get. Make sure you are on the ER if you aren't as well. It took me about a year when I first moved to the UK (ie. coming from absolutely nothing on my credit file) to get my first credit card, with a meagre £200 limit, but even this is enough if managed responsibly to build up your credit file.

seatbeltnoob · 22 October 2019 at 4:00PM

PRAISETHESUN wrote: »

As above, lenders DO NOT see your score. It has no bearing whatsoever on your ability to get credit whatsoever.

The credit score is made up by reference agencies, it's their best guess on how lenders see you in terms of credit worthiness.

I'd take a punt and say clearescore and noddle have a far greater idea of your credit worthiness to any lender than you do.

credit reference agencies have a pretty good idea of what lenders want. They have employees moving between credit reference agencies and lending banks. A credit score is a good way to gauge whether you're improving as a prospective borrower or not.

You think clearscore don't consult with the banking industry on their lending profiles? Some computer programmer designing their website just decided to take it up onto himself to generate scores for users?

seatbeltnoob · 22 October 2019 at 4:03PM

Lunarelle wrote: »

Hi all,

I have a sim only contract that I'm currently paying. I've had it for a few months now but my credit score is not going up and I don't understand why? I have a low credit score and as such cannot get credit cards or store cards. I have Logbox but have only just set that up and am only a month into paying. I will find out if that's doing anything in 3 days.

Any ideas as to why it's not going up?

Thanks
Luna

Nor my phone contract or my home telephone contract show up on my credit report. It's a big change since 10 years ago when they would always show up on your credit report.

I think it's a sign of the changing time. Almost everyone is on a contract (even moneysavers on sim only), it's part of life. People rarely default on a necessity like a phone contract. The phone companies dont want to bother with admin costs to record your payments each month to CRA so they don't bother.

Credit Score not going up

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