Credit

[ukracer]

It's not always about taking a loan out or a new credit card it can be simple things like paying for insurance with installments or paying a gas or electricity bill.

But to be honest I find it so wrong a private company can set up and first of all get personal information on you. But even worse supply it to others.
Not only that but they all have differing credit indicators a few of which make no sense.

I am reading that correctly am I not??

I also thought that changes are being brought in where you no longer get a free 30 plus days to clear all the card to zero. I.e they charge you from the day you purchase an item??



I lost 11 points just because of 2 hard searches. Car insurance and I assume my bank for the same thing??

In case anyone is unaware the reason you need a good credit score ( assuming you need credit, is because the interest rate they charge varies according to your credit score, which often makes no sense.

Is it just me or do others think or feel the same?

EDIT: I just noticed the one search is from 2023. I made an application for a further advance to pay for the lease on our house. It was actually accepted and funds were paid out....but as they sent it to the wrong place, and issues with length of current lease, it was sent back.
But the hard search stays on my account and affects my credit score.
This just can't be right, can it?

 

[julianthegypsy]

It's mad. We got credit cards and use them once a month for something like blu-roll off amazon. That adds loads to our credit score, so if we wanted a loan it would be cheaper. Our score was low for the same reason as you, we don't owe anything so we have no loans to repay. Mad.

 

[My Old Landy]

Same here, mine was low so took out a credit card. It boosted it but then dropped down. The reason is I don't use it enough!
Also said I needed at least 4k credit to be sure of a good score!

 

[julianthegypsy]

Same here, mine was low so took out a credit card. It boosted it but then dropped down. The reason is I don't use it enough!
Also said I needed at least 4k credit to be sure of a good score!

Exactly. We spend about a tenner on something or other once a month just to keep it active. Totally pointless.

 

[ukracer]

Exactly. We spend about a tenner on something or other once a month just to keep it active. Totally pointless.

It's actually not pointless if you want a loan though. The actual rate you pay is higher the lower the credit score you have. Until it refuses you a loan.....

 

[Robotstar5]

It's mad. We got credit cards and use them once a month for something like blu-roll off amazon. That adds loads to our credit score, so if we wanted a loan it would be cheaper. Our score was low for the same reason as you, we don't owe anything so we have no loans to repay. Mad.

I reckon they will have to add a new high segment to the "credit-o-meter" for mrs Robo with the amount of online shopping she does, we've had 4 deliveries today

 

[julianthegypsy]

It's actually not pointless if you want a loan though. The actual rate you pay is higher the lower the credit score you have. Until it refuses you a loan.....

I meant that the credit rating system is pointless if you have to get a credit card and spend a tenner a month just for your rating!

 

[8ob]

I meant that the credit rating system is pointless if you have to get a credit card and spend a tenner a month just for your rating!

The whole system is totally bonkers, anybody with assets and zero borrowings or debt is considered a risk.

Bob

 

[colnerov]

Yes, but they need evidence to assess your attitude / willingness / ability to service the debt.

 

[gaz1]

Same here, mine was low so took out a credit card. It boosted it but then dropped down. The reason is I don't use it enough!
Also said I needed at least 4k credit to be sure of a good score!

I meant that the credit rating system is pointless if you have to get a credit card and spend a tenner a month just for your rating!

The whole system is totally bonkers, anybody with assets and zero borrowings or debt is considered a risk.

Bob

its corperate by the banks

your credit is based on debt and it sounds crazy you can get any amount of debt as long as you pay it back

so the more credit that you use the more chance you have to a much better credit record

so the more things you buy gives you a higher credit rating even if its all on tick by using mounthly credit payments back every month

 

[rtcosic]

Some time ago when banks were offering cash incentives to set up accounts the offspring went hunting.
Get pay into Bank No 1.
Set up a standing order to transfer all of it to Bank 2 the next working day.
Set up a standing order to Bank No 3 on the next working day plus 1
Set up a standing order to transfer back to Bank No 1 the next working day plus 3
Set up direct debits for all bills from Bank No 1 on the next working day plus 5 - to allow a cushion for missed transfer dates.

Sometimes banks 2 or 3 required one DD for utilities, rates etc along the way

Each bank's badly programmed systems thought they had a good customer with lots of funds in and out and all bills paid promptly.

All 3 banks were offering credit cards with ever-increasing credit limits.

Once the banks stopped buying customers the 2 bank accounts with the worst terms worst terms were closed.

 

[cheb]

I used to do that too. The thrill of getting one over on the man was worth it.

 

[addjunkie]

The whole system is totally bonkers, anybody with assets and zero borrowings or debt is considered a risk.

Bob

We are, you are correct, but in this day and age its actually very difficult to drop completely out of the system. Pay your phone bill, it helps the score, a mobile phone account, it helps the score, buy on line with a credit card ( you'd be daft to use anything else) it improves the score.

My father who used to do his own credit in his TV business, rather than use a finance company, had a theory that those who were out to con you would always know the system and have every box ticked when applying for credit. And in realty these credit check tools help folk manipulate things to improve the ability to borrow!

 

[ukracer]

Yes, but they need evidence to assess your attitude / willingness / ability to service the debt.

No one disputes that to a degree but the points do not go up with common sense or your ability to service the debt.

 

[ukracer]

Some time ago when banks were offering cash incentives to set up accounts the offspring went hunting.
Get pay into Bank No 1.
Set up a standing order to transfer all of it to Bank 2 the next working day.
Set up a standing order to Bank No 3 on the next working day plus 1
Set up a standing order to transfer back to Bank No 1 the next working day plus 3
Set up direct debits for all bills from Bank No 1 on the next working day plus 5 - to allow a cushion for missed transfer dates.

Sometimes banks 2 or 3 required one DD for utilities, rates etc along the way

Each bank's badly programmed systems thought they had a good customer with lots of funds in and out and all bills paid promptly.

All 3 banks were offering credit cards with ever-increasing credit limits.

Once the banks stopped buying customers the 2 bank accounts with the worst terms worst terms were closed.

One of the biggest problems is the zero % credit cards for X amount of time. They keep increasing the credit limit but after a while the zero% finishes so they give you a while and then tell you that you are in perpetual debt (which not always true. But at this stage they increase the amount you need to pay back each month......forward a few months and you realise its cheaper to take out a loan and pay them back in full. At that stage they close your account and say you cant apply for a new card for 6 months...lol

So almost immediately your avilable credit % drops and getting a new card or loan in the future costs more...IT must be all a scam.

 

[bourbon]

My credit score must be well and truly stuffed then. No debit, no credit cards, house paid off,

 

[roofman]

The whole credit card system is built like the old green shield stamps...more you spend the more they keep giving, but the banks formula is not stamps but more credit. Having said that i use my company credit card for a lot of my materials and it can be a cheap form of credit if used right.

 

[My Old Landy]

My credit score must be well and truly stuffed then. No debit, no credit cards, house paid off,

That is the position I was in. The Mrs wants to start a small business so we have had to get a credit card etc to boost it.

 

[sg66]

Luckily I'm past having to worry about it and probably more financially secure than any point during my working life yet because I don't have loans, pay for insurance in full and only have mobile phone the score is slowly dwindling which is ridiculous from a risk point of view for them as I'm anything but, hey ho.

 

[colnerov]

My credit score must be well and truly stuffed then. No debit, no credit cards, house paid off,

Ditto.