Credit Report

[Minnie18]

Originally Posted by pinkspideruk

The different companies look at different things so its a good idea to check all 3 (although I only use noddle or whatever its now called and experian free sites)

With experian my rating is good

With noddles its top end of poor

I have 2 credit cards which are both at about 10% of their limits and i will often make a minimum payment only, I am registered on electoral roll and I also have my mobile and virgin media accounts plus my insurance account where I obv pay monthly. My credit rating has been going up month on month.

I did have a DWP a few years ago and there are 2 old loans on my account both paid off but showing as satisfied rather than settled due to a repayment plan - these will stay on record for 6 years from the date they were paid off completely so another 2 years! And these will impact on my credit score until they go. Late payments will also show on your account for 6 years - if you use noddle and have a look at the actual open accounts it will show your monthly payments and whether you were late, how late you were (1 month or 2 months) etc which creditors can see. If it shows quite a lot of late payments then it will deffo drop your score as your seen as a risk even if you do eventually pay up.

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Thanks I will have a look on all 3 websites.

[400ixl]

Originally Posted by Hmr89

I think credit reports are a bit unfair as they don't factor in any savings. Someone like my Mum's friend would be looked on extremely favourably whereas someone with no debt, no credit cards and £150k in the bank would have a much poorer score as there is no record of their ability to repay to lenders.

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Whilst they don't factor savings, they do income vs debt ratio. So you can have zero debt and a perfect score.However, this does not guarantee acceptance for loans / cards as there is a lack of history to show you would be reliable in paying these off (not necessarily about affordability).

You also have to look at some of these sites like Clearscore who are renowned for dropping some peoples score in an attempt to upsell products to them.

Money saving expert credit club is one of the better ones to use for an accurate picture.

[Mel49]

Originally Posted by Chilli-pepper

Hmm, I have just done mine just out of pure curiosity, it gives a low score due to not having any credit/credit cards or loans - I only have a mortgage and I am second card on OH Virgin credit card.

I was a bit shocked at first when I saw a low score but their report suggests taking out more credit not sure this is good advice or not?, I can see where they are coming from it terms of building up the score but it could encourage someone to get into debt.

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Mine is lower than my DH and DS (23) but like you apart from Mortgage no debts, no mobile phone contract and secondary card holder. I've recently applied for a M & S Credit card in my name not to improve my credit score although it may help but just so I have access to a credit card if anything should happen to my DH. (My father-in-law recently passed away and my mother-in-law was the secondary card holder but the account has had to be closed).

[Bridget]

Clearscore - it's a nice easy website and you don't have to pay.

[400ixl]

Just been back and looked at Clearscore. First time in about 2 years.

Wow, talk about out of date. It still references things like a mortgage which was paid in full months ago.

Every other credit score reference agency, including direct with Equifax (who they reference) I have a perfect score. Clearscore is is 150 points down with nothing in the negative column at all.

Basically avoid it, its a load of rubbish.

[Minnie18]

Just noticed on my report it has a address on it that I've never lived at. It's dh dads house.

[Guest]

Just to throw a spanner in the works slightly guys - but it is worth knowing that lenders NEVER see these "credit scores" that you will get from the Credit Reference Agencies so don't get too hung up on having a great/average/poor score or anywhere in between.

What the lenders do get is the DATA in your report - such as are you on the voters roll, do you have CCJ's ,what debt do you have and do you make the monthly repayments. So focus on making sure the data is correct and don't worry about the score.

The reason lenders don't use the scores from the agencies are various but the big one is that CRA's don't know how much you earn - so they cannot do any affordability checking etc. Each lender will have their own scoring mechanism that they will use - they will combine the information you give them when you apply, they will check their internal records if you have been a customers in the past and they will also use the data from a credit reference agency to decide whether to give credit or not. They will never share what their criteria is (because then fraudsters would know exactly how to cheat the system).

Because us consumers will never know what each bank wants to see just follow the general guidelines of being on the voters roll, checking your data is correct on your credit file and ensuring you don't miss any payments and you won't go far wrong.

Regarding the argument of "you need credit to get credit" - this is because lenders want to be reassured that you have a history of paying debt back. If you look at it from the banks point of view they want to see a good track record because it helps prove you are a good risk.

But this doesn't mean you need to go and get yourself in loads of debt. You can apply for a credit card from the bank who has your current account (because they already know your track record with them) and just put some everyday spending on it each month. Stuff you would have purchased anyway - like food shop, coffees etc and then pay it off in full each month (that is the important bit) - that way you won't pay any interest, but as the months go on your credit report will show a credit card that gets paid on time each month - and builds up that all important history.

Sorry for rambling there! Hope it helps.

[Minnie18]

Thanks Stubbs86 thats really informative.

[MissVincent]

Originally Posted by Minnie18

I don't get the whole take out credit to get a good rating thing either. What if people took out credit and couldn't pay it for whatever reason then there score would be worse off.

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Because if you don't take out credit then a potential lender has no idea what type of customer you are. They need to see you pay back and on time so they know you are a good customer.

Sounds like with aqua you paid before the statement so you were making a payment to the previous month.

Set up a direct debit and you will never be late

[Minnie18]

Originally Posted by MissVincent

Because if you don't take out credit then a potential lender has no idea what type of customer you are. They need to see you pay back and on time so they know you are a good customer.

Sounds like with aqua you paid before the statement so you were making a payment to the previous month.

Set up a direct debit and you will never be late

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Thanks, I paid it off today so thats one less thing to deal with.