I dont know if you have many people on here from the UK but im wondering if your credit scoring system is similar to the UKs? I've just turned 21 and have being using my credit since i turned 18 in a number of ways including loans and cards and always been good. I've looked at my credit score as i'm looking at how im getting on and its shockingly LOW :cry: ! I have a big loan which will has 4 years to be paid which is easily affordable and two credit cars which carry about £2000.00 accross them but this is been paid off in big chunks now. In the last two years i've only had one missed payment which is to do with an online banking payment which got delayed because of the weekend so im stuck on trying to get that removed to increase my credit score. I'm also trying to get some credit searches which have been done by a car dealership to try and improve my ratings. I've also recently moved in the last 12months, will this affect my credit score? whats the best way to improve it? any help would be appreciated.
Cheers
Rob
Hi roberto,
Welcome to the Forum.
I would suggest that you look for any negative listings on your credit score. Any negative items can remain on your report for almost 6 years, and adversely affect your score. Did you miss any payment recently? Because as far as I know, any old missed payment does not have too much of a negative impact, if you have been regular with payments in the past 12 months.
The UK Credit Scoring System takes into account, how long you have been residing at the same place. Creditors would like to see that you have lived at the same residence, for a continuous period of 3 years or more. So, if you have changed your address a number of times, in the past 6 months your credit score will go down. I think, if you do not change your present address in the next 6 months, it can help to improve your score.
Hi roberto,
I'm also trying to get some credit searches which have been done by a car dealership to try and improve my ratings.
I think by "credit searches" you mean the hard inquiries. I agree with you, removing credit searches can help to improve your score. A credit search can be reported for 2 years and thus adversely affect your score, for a long time. You can try to remove it before the 2 years time, by sending the car dealer a letter to remove the credit search. You will find a sample letter to Remove Hard Inquiry in the Letters of Credit section. You can use the same format but you'll have to make the necessary changes.
Try not to apply for a new line of credit while you are fixing your score. Also, if you can afford to pay off the installment loan, before the due date of 4 years it might help to raise your score.
Well im not planning on changing address for the foreseable future so that may help the score improve. I have considered paying off the installment loan before the 4 years but the apr rating is so low on that, no bank can currently match it in the uk. I've used the Remove Hard Inquiry letter which has been faxed over to a couple of lenders who the car dealer has used so hopefully that can remove the majority.
I'm thinking is it worth clearing the credit cards to help with the score quickly or just pay it off say over 6months?
Cheers
Rob
Hi roberto,
It is always best to not leave any balances remaining on your credit cards. Your credit score will increase the sooner you pay off all your debts. After you have cleared all your debts, keep your credit card utilization between 35-50%. Build a good credit history by making timely payments.