Best way to create a good credit rating?
- Thread starter Skeeter
- Start date
Ok so first of all - I'm an FCA regulated finance manager who deals in finance everyday so have experience here. What a lot of people have said is correct - processing many applications within a short period will lower your partners credit score so don't so that.
Applying for the right card will help, use it for purchase you'd usually use cash for and pay it off every month incurring no interest. Free trials of credit expert or Check My File can help you with picking the right card.
Please no one get hung up on your "credit score" as in the number these sites give you as your score. There are 3 main credit agency's and your "score" will be different for each. Every lender has an underwriting criteria that is different from the next. They all make decisions based on different information. Some take younger people some won't. Some want income details some don't. I've seen 999 scores get declined and 600 scores pass.
Mobile phones are a great starting point. A lot of networks will take anyone maybe subject to a deposit. It's worth it to get on the credit ladder.
Just make sure - you don't over commit your income against your monthy outgoings, don't apply to too many companies at once, keep your bank account in credit (If a lender is unsure about a decision they will often want to see your last 3 month bank statement - and want it to be in credit showing ability to repay) and if you are looking for a mortgage then speak to a professional.
Sorry for any spelling or gramar mistakes. I'm using my iPhone.
Hope that helps.
Applying for the right card will help, use it for purchase you'd usually use cash for and pay it off every month incurring no interest. Free trials of credit expert or Check My File can help you with picking the right card.
Please no one get hung up on your "credit score" as in the number these sites give you as your score. There are 3 main credit agency's and your "score" will be different for each. Every lender has an underwriting criteria that is different from the next. They all make decisions based on different information. Some take younger people some won't. Some want income details some don't. I've seen 999 scores get declined and 600 scores pass.
Mobile phones are a great starting point. A lot of networks will take anyone maybe subject to a deposit. It's worth it to get on the credit ladder.
Just make sure - you don't over commit your income against your monthy outgoings, don't apply to too many companies at once, keep your bank account in credit (If a lender is unsure about a decision they will often want to see your last 3 month bank statement - and want it to be in credit showing ability to repay) and if you are looking for a mortgage then speak to a professional.
Sorry for any spelling or gramar mistakes. I'm using my iPhone.
Hope that helps.
Ran a Noodle check on her, 4/5, better than mine (I've never had anything declined) and not a single blot on her current or past credits (phone contracts and store cards, plus an overdraft).
So I can only assume she was declined for reasons not related to her credit score.
So I can only assume she was declined for reasons not related to her credit score.
Many lenders will decline an application instantly for using payday loans. Since the FCA took over and pushed for responsible lending many lenders are afraid that this shows an applicant living beyond their means.
You don't just have a credit score though... each individual lender scores you themselves based on their criteria, records from credit agencies etc... Just because you've seen some score of 975 out of 1000 somewhere doesn't mean that you have the same score with the lender that turned you down.
not surprising, its a really dumb thing to do... pretty much anyone can get a chav credit card with higher APR... and if you just need some credit to tide you over till pay day then they're fine, you won't even need to pay any interest
This is what you need to start with.
Pretty sure anyone who can get a mobile contract can get a high interest Aqua card too.
Untrue, every purchase you make make with the card earns them fees.
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
Exactly, I find it amazing that people still trot out the tripe that card companies won't want people who pay on time and will decline them as a result. It's rubbish - you don't get turned down for credit cards because you are 'too good' because there are more ways credit card firms make money from you than just late payments.
Some credit facilities - ie Amex Chargecards - don't even offer the facility to carry a balance and pay interest!
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[TW]Fox;26738206 said:
On one of my credit cards that I got to improve credit score, I've never paid any interest on it and they decided one day to start giving me 0.5% cashback on all spending
No way they'd be doing that if they weren't getting money as a result of me being a customer one way or another as otherwise they would just be losing money on me.
Be warned Noddle can be a bit out of date and aren't as useful as other CRA's. Checkmyfile.com is free for your first month (£7.99 after that but it's easy to cancel) and gives you reports from multiple CRA's and info from Experian. Their data is much more in-depth and easy to understand also
Having used both I would recommend CMF over Noddle, it's an awful lot more indepth, more upto date and just more useful. If you really don't want to pay though (and I can understand why) Noddle is ok - but it is worth remembering that they don't report from all credit agency sources, so if she has a black mark (a default) on her file from somewhere you simply may not see it.
Some really poor advice in here, such as "apply for lots of cards" etc etc.
Tell her to speak to her bank regarding a credit card, most will be able to offer an option, and she shouldn't have any issues as they hold all the financial information they need to make a decision.
It's got to be a better option than going with a sub prime credit card like Vanquis!
Tell her to speak to her bank regarding a credit card, most will be able to offer an option, and she shouldn't have any issues as they hold all the financial information they need to make a decision.
It's got to be a better option than going with a sub prime credit card like Vanquis!
