FabSwingers.com forum: Credit rating advice

By *ary bailey OP Couple
over a year ago

basildon

Does getting rid off available credit improve credit score ? Ie cancelling credit cards and closing unused accounts and reducing limits on cards I want to keep. Cheers. Financial adviser help lol

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By (user no longer on site)
over a year ago

Yes it will

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By *anky_PankyWoman
over a year ago

Filthy Fuckeryville

I always thought they helped as long as there wasn't any debt on it?

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By (user no longer on site)
over a year ago

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By *ary bailey OP Couple
over a year ago

basildon

Thanks.

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By *ary bailey OP Couple
over a year ago

basildon

Ta. ive got noodle or what ever its called.

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By *ary bailey OP Couple
over a year ago

basildon

Does turning 40 affect it as thats the only difference in a month. Ive saved more to proove can pay back easy.

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By (user no longer on site)
over a year ago

Credit score is based, amongst other things, on how well you've managed the credit you have/had.

Getting rid of allocated credit that you're not using will decrease your exposure. This means that lenders will be happier to lend you more, as you're less at risk of racking up a mountain of debt all in one go.

The way to improve your credit rating is to have easily manageable credit that you pay off on, or before time.

A credit card is a good way to do this as you're paying off in full every month.

One thing to note is that banks/lenders use your credit score as a guide only. They all have their own lending criteria (which you're not allowed to know!), and make decisions based on that.

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By (user no longer on site)
over a year ago

"Does getting rid off available credit improve credit score ? Ie cancelling credit cards and closing unused accounts and reducing limits on cards I want to keep. Cheers. Financial adviser help lol "

NO, NO, NO

If you want a high rating credit score, you ideally need 3 or 4 different credit cards and you need to use them regular, it doesn't need to be high amount's but you should then PAY THEM OFF IN FULL, before the invoice is due.

This is recorded every Month and increases your credit score.

Ensuring you are on the Voters Register also helps.

Any Car purchase or credit purchase is recorded and you need to keep regular payments

Remember any company that carries out a credit search on you; I.E. if you are about to purchase a car, they will do a credit search, this will initially lower your score and the more companies that do credit searches effect and lower your score.

You need a high Score, Experian will give you a months free membership online where you can check your score and it gives good advice on what to do to ensure you have a good credit rating

A good credit rating does not happen over night but once you are up in the 900's or even 999, it normally stays good, just ensure you fully clear all credit on your cards every month before it is due.

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By (user no longer on site)
over a year ago

"Does turning 40 affect it as thats the only difference in a month. Ive saved more to proove can pay back easy. "

This sounds like you've been applying for credit regularly recently. If so that is more likely to affect your rating than turning 40 however every company has their own rating system I'd be surprised if turning 40 would affect it. Perhaps closer to retirement age so 60+ might.

And yes lose unused credit. It doesn't do your rating any favours. Used credit that is properly managed would but unused credit can be seen by some lenders as having access to too much credit and be a negative

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By *infullysexyWoman
over a year ago

Birmingham

Hi there, your credit scoring depends on a number of factors, how many times you apply for credit, outstanding balances, amount of accounts you have etc. Yes closing accounts that are dormant so to speak does help but it's always wise to have one account active as I've heard of people struggling to get credit as they have little or no credit history whatsoever. I think there's a free credit checker called noddle or something like that will give you your score!

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By (user no longer on site)
over a year ago

Direct debits it doesn't matter what it's for but it's supposed to increase your score . But what I done years ago is bump every card going bank loans the lot I know it's not everyone's way to do it but that's me folks at least now I can't get into debt cos no one will give me anything ha ha lol

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By (user no longer on site)
over a year ago

"Does getting rid off available credit improve credit score ? Ie cancelling credit cards and closing unused accounts and reducing limits on cards I want to keep. Cheers. Financial adviser help lol

NO, NO, NO

This is recorded every Month and increases your credit score.

Ensuring you are on the Voters Register also helps.

Any Car purchase or credit purchase is recorded and you need to keep regular payments

You need a high Score, Experian will give you a months free membership online where you can check your score and it gives good advice on what to do to ensure you have a good credit rating

Agree in most part but credit score is pointless. Each company has their own rating system. Experian score is not used by any credit company.

Also as I've said and you have. .. used credit can help improve if used correctly. Unused credit as the OP question is not good to keep.

Finally things like some rent, energy companies, insurance if you pay monthly and phones all record your use of credit. All these needs to be well managed it's not just overdrafts and mortgages and credit cards.

Not forgetting pay day loans basically kill your credit rating for some companies, even if paid off. A lot of companies see them as a way to tell if the person has problems managing cash.

Also if you run your bank accounts well, then some banks take I to account how you manage your accounts with them, not just what the info coming back from the credit agencies say.

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By *icelymarkedplusoneCouple
over a year ago

cardiff

I delight in paying with cash. If I can't pay cash, I can't afford it. Old fashioned but it works for me.

My credit score is therefore crap! I don't care! I like messing up them system lol

Him

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By (user no longer on site)
over a year ago

I also agree with part of what you say, but if you log on and check with Experian (free for a month) then you cancel, they list every way you can increase your credit score, they identify every credit card you have, bank account, mortgage all is at hand, and they give you step by step direction which is much better than myself, you or others trying to advise on a swinging forum.

wishing the OP well

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By *ary bailey OP Couple
over a year ago

basildon

Cheers ive not missed a payment in over 3 years. Then only because off a cock up by dwp and bank. Everything goes on card 0%. Everything is on dd and accounts are so clean its unreal. Im in credit with all my utilities. I do have one credit card thats at 60% used credit I could pay off but bank guy said leave it as not an issue. Its set up on min payment. I also pay extra each month off mortgage

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By (user no longer on site)
over a year ago

"Cheers ive not missed a payment in over 3 years. Then only because off a cock up by dwp and bank. Everything goes on card 0%. Everything is on dd and accounts are so clean its unreal. Im in credit with all my utilities. I do have one credit card thats at 60% used credit I could pay off but bank guy said leave it as not an issue. Its set up on min payment. I also pay extra each month off mortgage

The only other thing that hasn't been talked about is linked persons.

I am linked to my husband but only since Jan this year despite being married 9 years. Up until Jan the mortgage was in my name and we had no joint current account (savings accounts or named on someone else's credit card don't link you). I now have a joint mortgage which means when I apply for credit his rating is also taken into account.

I had an issue when I was 20 that I'd somehow got linked to my brother. I found out through applying for my credit file. It was easy to disassociate and made a huge difference as he had ccjs that had occurred once he moved overseas.

Could also be that they don't want you for what ever reason their computer said no, but others would. There are some websites that will check your eligibility without you applying so as to not further leave application searches on your account.

Each real search hurts your rating so the more you apply and get turned down the worse the situation becomes. These searches stay on your file for a year. Not great if you have say a mortgage application or car loan application coming up that you need.

Unlike others that have posted. I use credit a lot. I use 0% cards and put money away in interest earning accounts to pay off when the card bonus rate expires. I move money between banks and accounts to take advantage of better rates and loyalty payments.

But I an also an accountant, run my cash flow predictions, have savings as I'm renovating the house so need those to work for me while I'm waiting to spend it.

Hubby just says "pls don't die first"

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By *ary bailey OP Couple
over a year ago

basildon

Dont believe they link people anymore. Not got anyone linked to me. Might look at other lenders as I dont want to pay off credit card till get loan and 0% is up. But thats soon so will need paying. Dont want to apply for new card and reduce chances. Should just taken loan in may.

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By (user no longer on site)
over a year ago

"Dont believe they link people anymore. Not got anyone linked to me. Might look at other lenders as I dont want to pay off credit card till get loan and 0% is up. But thats soon so will need paying. Dont want to apply for new card and reduce chances. Should just taken loan in may.

Just checked my score out and realised how much debt I'm actually in, not AS bad as I thought but still pretty bad. I have a linked person on mine and he is in as much debt as me (ex husband)

Still now I know how much it is, once I move, I can then start to pay it off

G x

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By (user no longer on site)
over a year ago

If you pay your debt you will never have anything bump the lot take it from me it's the best way I did it and now I have my house a bank account loads of money and Linda's always busy what would we do without escorts ha ha lol

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By (user no longer on site)
over a year ago

They very definitely do still link people. If you have joint credit you are financially linked and adverse credit on a partner could most certainly affect you.

It's easy to remove a linked person so long as you don't have any joint credit like a mortgage or joint current account, if you have these things you can't break the link.

Always good to get a credit report ahead of applications if you have time. Only costs a couple of quid per credit agency.

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By *ws101Man
over a year ago

mansfield

Getting a good credit score is easy. Get a credit card. Buy all you would (nothing more) per month on a credit card. Pay back all you have spent at the end of the month. Month after month and it just goes up.

having a fair wack in a isa helps too

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By (user no longer on site)
over a year ago

"Ta. ive got noodle or what ever its called."

Me too, it means I can see what debts I have and is free, the downside is that because it isn't as well known/used as other companies, it doesn't update as quick when I make payments/clear a debt

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By (user no longer on site)
over a year ago

"Ta. ive got noodle or what ever its called."

Had noodle 1st but switched over as clear score is much better!

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By *oodmessMan
over a year ago

yumsville

"Does getting rid off available credit improve credit score ? Ie cancelling credit cards and closing unused accounts and reducing limits on cards I want to keep. Cheers. Financial adviser help lol "

No it doesn't. Credit is about risk so if you are shown to be able to manage your finances in a responsible way then your score improves. I do not know why people are saying close them. This is ridiculous as all that you will have left are saving accounts.

If you have overdrafts and credit cards with decent limits on them your credit score will reflect that banks are willing to lend you money and you are not a major risk to lending, that you are financially responsible. Someone who has plenty of saving but has not got a CC, mortgage or overdraft and is up with repayments is a bigger risk as there is no record of lending and repayment.

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By *oodmessMan
over a year ago

yumsville

^pay them off but keep them active by using them occasionally with purchases you can pay off easily.

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