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Credit Scores/Ratings and how to improve them

Discussion in 'Randomination' started by markysimmo, 18 Oct 2021.

  1. markysimmo

    markysimmo Johnny nice-tits

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    Currently saving for a deposit on a house and obviously a mortgage probably this time next year

    After my redundancy payout I used some of that to pay off all the debts my Mrs and I had

    I still have high credit limits on my remaining 3 credit cards (£0 balances though), should I ring them up and reduce them right down ??

    Any other tips to trying to bring up my Credit Score on Equifax it's currently 734 and I obviously want it almost perfect
     
  2. ShipOfTheseus

    ShipOfTheseus Sergei Rebrov

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    High credit limits improve rather than reduce your score, so don’t do that.

    What the rating agencies like to see is lots of evidence of other people trusting you and that trust being repaid. 734 is probably fine though, and three cards with high limits works in your favour.
     
    markysimmo likes this.
  3. SpurMeUp

    SpurMeUp Nayim

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    Voting and being on the electoral roll - registered to vote.

    then sign up to one of them equifaxcrap things - remember to canacel within a month! - and check what it says about your credit worthiness.

    Obviously a load of gonad*s but have to play the game
     
  4. scaramanga

    scaramanga Ricky Villa Staff Member

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    Use your credit cards and clear them every month.

    The fastest way to a quick credit rating is to show that you pay your debts.
     
  5. ricky2tricky4city

    ricky2tricky4city Christian Ziege

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    Check you file with Experian Equifax Credit Karma

    Credit Karma is free. Get a free written report for the others or sign up and then cancel as @SpurMeUp suggests.

    Check all the details are correct, address history etc, and you recognise all the searches and credit arrangements you have on there. Check the logged history of each credit provider you have to make sure there are no mistakes.

    You can contest or raise a dispute for anything that doesn't look right. This is important, as some applications can get held up or refused for the stupidest thing (and it's effing frustrating when you track down why)

    Some credit is good. If you still have credit cards (and trust yourself), use them and set them to be fully paid each month. Ironically people with little financial history struggle as much as anyone to get acceptance for credit/loans etc.

    There is probably some nuance to hitting the sweet spot balance wise. Most credit applications are probably all processed thru some algorithm these days. Look on MSE...there is probably good advice on there.
     
    markysimmo likes this.
  6. markysimmo

    markysimmo Johnny nice-tits

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    Yeh I'm using them a small amount and paying off the next month like you say
     
    scaramanga likes this.
  7. markysimmo

    markysimmo Johnny nice-tits

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    I have Equifax and Credit Karma
    I'll look on MSE for further tips
     
  8. markysimmo

    markysimmo Johnny nice-tits

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    It was 599 maybe 3 months ago so it's jumped a fair bit for sure
     
    Bedfordspurs likes this.
  9. Diamond Lights

    Diamond Lights Pascal Chimbonda

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    literally this. We're a nation who love credit. Blows my mind how people i know buy things and are like "yeh it's only £150pm" at like 29.9% APR *facepalm*

    My sister is the highest earner in her friends group yet has the worst car out of all of them. Loads of people i know barely have a decent pension plan. Mad.
     
    Danishfurniturelover likes this.
  10. Bedfordspurs

    Bedfordspurs Bert Bliss

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    Clear score is good and free
     
  11. ricky2tricky4city

    ricky2tricky4city Christian Ziege

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    Financial education not being part of the school curriculum is a crime.
     
  12. johnola

    johnola Mido

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    I’ve got a perfect credit score. I never borrow but may benefit unduly from having an offset mortgage which at times is fully offset before I move cash out to other investments.

    Getting debt free is a really massive step forward for anyone, and the sooner you do this the greater the accumulations of wealth over time from compound interest working for you rather than against you.
     
  13. ricky2tricky4city

    ricky2tricky4city Christian Ziege

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    Just too add
    Are you contracting at the moment? ie self employed? (I can't remember tbh)
    A PAYE job will smooth the way, and widen the market, when it comes to the mortgage application.
     
  14. markysimmo

    markysimmo Johnny nice-tits

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    Yes but most if not all of the contracts I will go for are Inside of IR35 so I get my PAYE done by a payroll company
     
  15. scaramanga

    scaramanga Ricky Villa Staff Member

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    Being completely debt free doesn't seem like good financial planning to me.

    Money is cheap at the moment and an amount of debt in some places would enable more investment in others.
     
  16. ricky2tricky4city

    ricky2tricky4city Christian Ziege

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    @johnola 's has everything he desires.
     
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  17. johnola

    johnola Mido

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    Yep it’s a conservative approach. Note though the sophistication within an offset mortgage means I can invest/spend the entire mortgage capital at a whim and finance that purchase at a low rate. I have access to a lot of money instantly if opportunity arises far far in excess of any credit card or personal loan.
     
    scaramanga likes this.
  18. johnola

    johnola Mido

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    I’ve given up worrying about money anyway. It caused me a lot of stress a decade ago.
     
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  19. markysimmo

    markysimmo Johnny nice-tits

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    Just did my score on Experian and it was 976/999
    Also looked at the mortgage page and it showed that I could be getting 1.5% rate fixed for 3 years
    I have been told though as a contractor I will have to go through a specialist mortgage broker
     
  20. johnola

    johnola Mido

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    fudge that Mark phone up your current mortgage company and ask them for something closer to 1% fixed for 5 years. They’ll pass everyone to underwriting whose circumstances don’t fit the norm but being a contractor (even a new one
    ) isn’t at all unusual.

    I know I was just banging on about the offset but we are gonna switch to repayment and first direct are offering a 1.09% rate fixed for 5 years. It was below 1% last week. That’s at 60% ltv with a £490 fee.
     
    markysimmo likes this.

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