Credit Rating: How it works and How to improve it discussion area

Moggles_2 · 28 August 2008 at 5:29PM

JimmyTheWig wrote: »

I signed up to check my credit report for free with Credit Expert last October through TopCashBack (as suggested by MSE) to have a look and get the free cashback. I cancelled it after having a look as I didn't want to pay for it. I would now be interested in having another look. Presumably I can't do it for free again? Or can I?

Sorry to disappoint you, Jimmy. It's just the one free trial per customer, unfortunately.

Prodad · 1 September 2008 at 12:20PM

Hello all, new to this so sorry if it's not in the right place but can anyone tell me if it is worth applying for a card with a low balance transfer rate and which one should it be. I currently have a Bcard Gold with a £13k limit and a £12k balance, Bcard Football with a £2k limit and near max, Tesco card with a £3k limit near max. I've recently been refused a BT card which I intended to use for this purpose but didn't state on the app form which card I wanted to repay. Can't think of any reason for refusal except being slightly over limit on Tesco card probably for not taking into account the Cardholder Protection Plan.

Moggles_2 · 1 September 2008 at 3:46PM

Prodad wrote: »

I currently have a Barclaycard Gold with a £13k limit and a £12k balance, B'card Football with a £2k limit and near max, Tesco card with a £3k limit near max. I've recently been refused a BT card. Can't think of any reason for refusal except being slightly over limit on Tesco card, probably for not taking into account the Cardholder Protection Plan.

You don't mention which card company turned you down, but bear in mind that potential lenders cannot assess the way you handle credit directly. The best indication they have is the payment history and credit limits on your existing cards with other lenders. Having three credit cards which are all maxed out, may signal over-commitment, so it's wise to leave some leeway

That said, there are any number of reasons why a given lender may refuse to extend credit. For tips to improve your chances of credit card acceptance, have a look at the *Credit Rating: how it works and how to improve it guide* especially Martin's *Manage and Improve your credit score* article,which gave rise to this thread.
http://www.moneysavingexpert.com/banking/credit-rating-credit-score#improve

nicholas88 · 1 September 2008 at 9:25PM

I'm a 20 year old student about to start my second year of university, at the beginning of my first year I applied for a student account, but I was refused due to not having enough of a credit history

. Recently however I've had a lot of financial trouble due to rent and studenty things, (not surprisingly had I had a student account it would have been avoided), and I'm thinking maybe I should try and get one again, only problem is due to said recent financial problems my credit history will now be a pile of !!!!, also due to moving in and out of student housing and changing my address on the electoral role I've moved about a bit aswell.

I'm getting my mum to add me at her address on the electoral role, as I didn't realise as a student you can be on both addresses, but she was forced to move a year ago as they're knocking our old house down. So really .... is there ANY hope of getting a student account and if not where should i start trying to fix it?

Moggles_2 · 1 September 2008 at 11:36PM

nicholas88 wrote: »

I'm a 20 year old student about to start my second year of university. At the beginning of my first year I applied for a student account, but I was refused due to not having enough of a credit history . Recently however I've had a lot of financial trouble due to rent and studenty things, (not surprisingly had I had a student account it would have been avoided) and I'm thinking maybe I should try and get one again. Only problem is due to said recent financial problems my credit history will now be a pile of !!!!. Also due to moving in and out of student housing and changing my address on the electoral role I've moved about a bit as well. I'm getting my mum to add me at her address on the electoral roll, as I didn't realise as a student you can be on both addresses, but she was forced to move a year ago as they're knocking our old house down. So really .... is there ANY hope of getting a student account and if not where should I start trying to fix it?

This is not really a credit card question, as I think you realise, and you may get replies more quickly, if you post again on the *Budgeting & Current Accounts* board

http://forums.moneysavingexpert.com/forumdisplay.html?f=20

Belnahua · 3 September 2008 at 7:27AM

Interestingly I've got 2 credit cards I've had since I was legally able to, and they don't appear on any of my credit records.

Thinking about it, it's probably harming my credit file, as I use them a little, but usually pay them off each month. So I don't really have credit that I use sensibly on my files!

ellie100 · 3 September 2008 at 11:39PM

im about to start university and have already opened a student account and have a credit card with this account. i was considering using the credit card ONLY for small managable sums (ie the shopping each week) and then paying it off automatically via direct debit (which has already been set up.)

would you recommend this as a way to build up a good credit rating or would it, as the article warned, perhaps make me 'too safe' for the banks to lend to if, in the future, i need loans for other things?

NickX · 4 September 2008 at 9:21AM

ellie100 wrote: »

im about to start university and have already opened a student account and have a credit card with this account. i was considering using the credit card ONLY for small managable sums (ie the shopping each week) and then paying it off automatically via direct debit (which has already been set up.)

would you recommend this as a way to build up a good credit rating or would it, as the article warned, perhaps make me 'too safe' for the banks to lend to if, in the future, i need loans for other things?

What you suggesting is an excellent way of building your credit rating and will lead to better lines of credit in the future.

You just need to make sure that you pay the entire balance off before the Due Date every month to avoid getting stung for interest and charges.

If you do this successfully, you will much "safer" than someone who has not used Credit Cards before.

Good Luck.

harryhound · 4 September 2008 at 10:43AM

Did I read Martin's news letter correctly this week?

The credit agencies cannot know you have:
Been to Prison?
Got a huge student loan?

Doe this mean that the bank is not allowed to ask these questions ?

Or if they do the punter is allowed to lie?

Harry.

dhassen · 4 September 2008 at 2:22PM

no lying on a an app. is fraud...... don't really know what you mean 'allowed to lie' lol

I've never been asked about my student loan or whether I have one anyway. I don't think banks ask about prison either specifically.... if you where out of work for a period they might ask about it, I'd say I was unemplyed not banged up lol (although I know being banged up is probably more respectable

joke...)

Credit Rating: How it works and How to improve it discussion area

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