Credit Rating: How it works and How to improve it discussion area
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brookerbabyisababy wrote: »Barclaycard
I've answered this question for you on your other thread
http://forums.moneysavingexpert.com/showthread.html?p=13295197&posted=1#post13295197People who don't know their rights, don't actually have those rights.0 -
Perhaps someone can help me, I obviously missed something re credit scoring. After a slightly dodgy history of missed payments and a default, I am back on financial track. For nearly 2 yrs, I have paid everything on time and in full. Three months ago, I ordered my credit score from Experian and it came back as 754. Today, I got a new score and it was 740. Why on earth has it dropped?! I have not applied for any credit and there are no oddities. The only thing that has changed is Vanquis increased my credit limit from £250 to £500 but as I pay it off in full every month, why would this negatively affect me?0
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I have been experiencing financial difficulties for the last 6 months or so and know my credit rating is low. I have a Nationwide Flexaccount jointly with another person who has a perfect credit history. I have never defaulted or had any problems with this particular account, but can my credit card problems (with other banks) detrimentally affect my joint account partner?0
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I recently graduated from University. However from my early years i have 4 defaulted account showing on my credit report where payments were missed and repayments were not kept up to date. Three of the four payments will be removed from my account next year as they will have been defaulted for six years.
I am now in a position to pay these debts and looking to improve my score. Ii am wondering how soon after payment will my credit score improve and will it be a big increase.0 -
Around 6 months ago I applied for loans however got declined.
I have 3 missed payments showing on my credit file from a current account that I had a small overdraft in and forgot about which I felt was a bit unfair as being an overdraft there was no payment plan in place to miss payments on...
I also realised that I wasn't on the electoral register which I have now been on since then...
I am aware that making too many applications and getting declined will have an adverse effect on my credit rating but I am in a situation where I need to apply for a loan...
I currently have 4 credit cards which I will be consolodating with this loan and closing...
Do you think I have left enough time to apply for credit again? I have checked my rating which is currently 'fair' at 860...
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It's all well and good getting credit checks done but every time you do it is logged and is not a positive sign for lenders who will lend to you. The first thing they do is look at how many times you have been checked and who by, this will indicate bad credit if it's done too often in a short time frame. Try to avoid this.
The best thing you can do to build up credit is get a common credit card e.g. barclaycard and always make sure you spend around £50 on it every month. Pay this of on time and you will have a good credit score.
Also make sure you do participate in elections and are on the electrol roll. Another thing lenders will look at, don't ask me why.
Building up credit is best thing I had done as many mortgage lenders have a fast track and to qualify you need a sqeeky clean credit history.0 -
workshy1980 wrote: »I obviously missed something re credit scoring. After a slightly dodgy history of missed payments and a default, I am back on financial track. For nearly 2 yrs, I have paid everything on time and in full. Three months ago, I ordered my credit score from Experian and it came back as 754. Today, I got a new score and it was 740. Why on earth has it dropped?! I have not applied for any credit and there are no oddities. The only thing that has changed is Vanquis increased my credit limit from £250 to £500, but as I pay it off in full every month, why would this negatively affect me?
Judging from the posts on here, it's easy to be lulled into a false sense of security by these numbers. Then it comes as a shock, when the figures take a dive. Equally, some posters are put off building a credit history at all, because of low scores.
Credit reports, when ordered directly from Experian and Equifax, are valuable. After all, this is the information lenders search when you apply for credit. Additional services like credit scores are a nice little earner for the credit reference agencies, but of little practical value to credit card applicants and certainly not worth paying extra for. I wouldn't let these numbers distract you from tackling the things that really matter
Remember credit reference agencies are there to provide your credit history, but the actual methodology (and the process of scoring itself) is done by their clients, the lenders. None of us - including the CRAs - knows what criteria are used by individual companies. Lenders do not disclose this information. It's not uncommon for MSEs to post different scores from the three CRAs or various scores from the same agency a few weeks apart. I suspect that the lenders' scores, had we access to them, would be different from each other as well!People who don't know their rights, don't actually have those rights.0 -
Also make sure you do participate in elections and are on the electrol roll.
Urm, agreed that being on the electoral role is crucial to getting a decent line of credit, but participating in elections is information that the Credit Card companies have no access to. Why would this make a difference anyway ?0 -
It's all well and good getting credit checks done but every time you do it is logged and is not a positive sign for lenders who will lend to you. The first thing they do is look at how many times you have been checked and who by, this will indicate bad credit if it's done too often in a short time frame. Try to avoid this.
The best thing you can do to build up credit is get a common credit card e.g. barclaycard and always make sure you spend around £50 on it every month. Pay this of on time and you will have a good credit score.
Also make sure you do participate in elections and are on the electrol roll. Another thing lenders will look at, don't ask me why.
Building up credit is best thing I had done as many mortgage lenders have a fast track and to qualify you need a sqeeky clean credit history.
Why £50? Can't you just spend £5?0 -
I have been experiencing financial difficulties for the last 6 months or so and know my credit rating is low. I have a Nationwide Flexaccount jointly with another person who has a perfect credit history. I have never defaulted or had any problems with this particular account, but can my credit card problems (with other banks) detrimentally affect my joint account partner?
Yes. If you share a financial product with someone else, such as a joint bank account, then you are financially linked and the management of your own affairs could have a knock-on effect on their credit rating.
The answer is to operate separate a/cs. Once your a/cs are separated, write to the credit reference agencies and ask for a notice of disassociation, to stop your credit history affecting theirs in future and vice versa People who don't know their rights, don't actually have those rights.0
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