Credit rating
I knew my credit rating was not that good but I was shocked when I signed up to Equifax and find that my credit score is: 114 (Very poor) as of 03.01.2014
What's the best advice to get my credit rating up?
Oh well most of you know that I have been accepted for a vanquis credit card and should get it soon and I am sure my credit rating will get good with vanquis I hope
What's the best advice to get my credit rating up?
Oh well most of you know that I have been accepted for a vanquis credit card and should get it soon and I am sure my credit rating will get good with vanquis I hope
0
Comments
Didn't comment in your other thread but I think you should cancel the card and concentrate on practical ways of improving your credit score.
I check my score through experian and they offer hints and tips on how to improve your score and show you where you are going wrong. I've got a good score and have never had a credit card.
Despite the obvious (managing your credit):
You may want to check that you are actually on the electrol register as well. This can have an impact on your credit score.
Do not assume everything on your record is correct. Check it and get any errors notified by way of a "Notice of Correction"
Not all Credit Reference agencies share the same information. It may be worth checking others also. A good free one is Noddle. You can sign up for free online.
I expect with a last resort lender, your credit rating may not significantly improve.
Lenders have their own methods of assessing someone's credit worthiness and generating their own scores each of which are unique to that lender
Whilst this is true (as there is no standard units of measure), some lenders refer to these agencies for guidance as well as using their own criteria. So it's not an entirely worthless exercise.
You can also get a statutory report for a fraction of the cost.
Whilst I do think they are a waste of money for certain individuals, they can be useful as a sanity check as to where the failures have occurred, and getting things corrected.
Noddle in particular is a good way of doing this for free.
Lenders refer to people's credit files and generate their own scores using the data on the files
The scores that a CRA generate themselves can't be viewed by lenders and are utterly meaningless even by their own admission as detailed at http://forums.moneysavingexpert.com/showthread.php?t=4858881
People certainly should routinely check their own files by obtaining statutory £2 reports or signing up to the free service from noddle but they should not pay a CRA for a meaningless score or sign up to an expensive subscription as they may as well take their cash and set it on fire!
Not trying to defend the credit "scores" as such, but in some cases they can be a useful indicator of a person's relative creditworthiness. Only a very broad indicator, though. In theory the OP with the "score" of 114 could be accepted for a £200K mortgage, but on the balance of probabilities it's perhaps unlikely.
Vanquis cards are regarded by some as useful "credit builders" - the key is using them selectively and ensuring the full balance is repaid each month so as to avoid what are not very competitive rates of interest.
Make of that what you will.
It's not unusual for a bankrupt to actually have a good credit rating. The Bankruptcy only stays on file for 6 years & has the biggest effect in the first year, is discharged after that year and can then start to get credit to rebuild their file.
Anyone can get a card from Vanquis.
They are major spammers.
I was getting double figure Emails from them every day for months.
They are now finally going straight to my Junk folder.