Poor credit score, should I care?

[GuinnessMK]

A few years ago I had a credit score of 999. Then I lost my business and was unemployed for a few months. Luckily I had no personal guarantees, so avoided bankruptcy. However 1 of the lads who worked with me, wanted to take his mobile and number with him. So he picked up the Direct Debit and took the phone.

Anyway I started working through agencies and then found a full time position, and am back to working through agencies again. I've never missed a mortgage payment (which is on BOE+1%), all my cars are paid for, I have no other personal loans, and all the credit cards are in credit by a few quid (just kept in case of emergencies).

Fast forward to this year, and I keep getting emails and junk mail offering me credit cards for people with low credit scores. So I check my credit score again. This time it's much lower. Further digging and I find out that the other lad stopped paying the DD on the phone, which was then cut off. But because it was in my name it's impacted on my score.

So given I have no intention of moving house, or remortgaging, or buying a car, or getting any sort of HP in the near future, should I care that my credit score is low?

Will it repair itself over time?

Or should I be more pro-active, buying small things on the credit cards and paying them off each month?

[zuby84]

If it was me; I would be a little pro-active in trying to get a "credit builder" credit card etc... I think your credit will repair itself a bit over time, but probably won't get "good" without you being a bit more pro-active about it. IF you ever reach a point where you need good credit; you might curse yourself for not being pro-active at the outset.

Up till 3-4 years ago; I couldn't even get a credit card (as I had no credit history - never needed to borrow anything apart from Student Loans.) Applied for a "credit builder" credit card and now a few years and credit cards later; I have an amazing credit score. It's a bit ironic in the way credit scores work; but you just have to "play the game."

[Simpo Two]

If you don't need credit does it matter?


On a aidenote, how do I get an ex-tenant 'reported' for arears, so her score is lowered?

[Sarnie]

Assuming the account defaulted, it will remain on your file for six years. If you don't require credit then it won't cause you any issues unless perhaps you ever required a job that needs a clean credit file such in the Financial Services industry.

Or the phone company could chase you for the payment if they pass it on to a debt recovery company??

[mrmr96]

Simpo Two said:

If you don't need credit does it matter?

It doesn't matter NOW but if he needs credit in FUTURE then it may do.

[anonymous-user]

If it was me I would find out how much was owed to the mobile phone company and get it paid off. It doesn't matter that you gave the phone to somebody else, it's your contract, your debt. Depending on the amount if you don't deal with it you may have the bailiffs knocking at your door at some date in the future.

ETA - Your credit cards are in credit? Do you mean they owe you money? Why would you do that?

Edited by anonymous-user on Monday 30th September 11:34

[Simpo Two]

Bluequay said:

ETA - Your credit cards are in credit? Do you mean they owe you money? Why would you do that?

No worse than having it in a current account on 0% probably.

I seem to remember a time when you could get interest on such 'credit'!

[TRB]

I don't have any credit/loans/mortgages. Out of curiosity I checked my credit score online and it was 992. It was based on such limited information and included a 'missed payment' on my mobile phone, with the 'age' of my bank accounts, mobile phone etc being the positive factors (and many years at same address/voters roll).

I thought I'd apply for a credit card to use for expenses at work. Even using a credit-matcher type service, I was offered a piddly £500 limit card with crazy interest rates.

That 992 online may as well have been a random number as it appears to be completely unrelated to my credit-worthiness, with my case being good score but limited options.

[Ozzie Osmond]

TRB said:

I thought I'd apply for a credit card to use for expenses at work. Even using a credit-matcher type service, I was offered a piddly £500 limit card with crazy interest rates.

I would take the credit card and use it regularly but make sure you pay off the full balance every month. This will cost you nothing at all whilst demonstrating that you are a reliable "borrower" for the purposes of credit score.

[TRB]

Ozzie Osmond said:

TRB said:

I thought I'd apply for a credit card to use for expenses at work. Even using a credit-matcher type service, I was offered a piddly £500 limit card with crazy interest rates.

I would take the credit card and use it regularly but make sure you pay off the full balance every month. This will cost you nothing at all whilst demonstrating that you are a reliable "borrower" for the purposes of credit score.

I paid off a mortgage at a young age, but that was more than 6 years ago and, as far as the credit score is concerned, I might as well have not bothered! On the flip-side, I was royally fked over by Mr Tax-Man which nearly ruined me, but again 6+ years ago so no one needs to know!

I suppose I'm not the target market for credit cards etc, but seems bizarre my credit 'score' was high but means nothing. The wife on the other-hand, whose (until very recently) only income was what I gave her, gets offered credit like it's going out of fashion.

If you DO get offered a piddly limit card, just use it for something low-value once a month (but every month). Part of your credit score is how much of your available credit you use.

Sorry to hijack the thread OP. You can add a notice of correction to your credit file which people searching it can see. Years ago I found an employer (bank) had done a credit check on me without permission. It was part of a broader (and in hindsight really quite petty) battle at the end of my employment, but I put a notice of correction against their search as I liked having the last word.