Credit rating/score

[Psycho Savager the 28th]

I'm a university student and I've just got my first credit card. I'd like to know how credit ratings work - do you get points every time you buy something and pay for it promptly? What happens to your score if you don't use your card at all?

[Ian J]

Credit scoring doesn't take into account spending and payments but is a method of assessing creditworthiness by awarding points dependant on the answers to a number of questions.

Marital Status:- single and living with parents 0 points, married with children 3 points

Employment Status:- employed with the same company over three year 3 points, just started new job 0 points

Address:- Own house for over three years is 3 points, rented furnished flat 0 points

The above are just examples of how it works.

The credit card provider will no doubt report monthly to all of the credit status companies such as Experian and Equifax and will tell them the balance and whether you have paid on time.

It will help future status to have a credit card that you use and make the payments on time. you don't have to pay it all off each month as long as you are shown to be acting responsibly

[Ender]

Ian, I did a search for "Experian credit scoring" and found the site you mentioned. They seem to do a free credit rating check, but is there a catch?

I'm interested in giving it a try.

Cheers,
Ender.

[Ian J]

I didn't know that they did a free check but have just looked at the Experian site and seen that they do. By law all credit reference agencies must give you a copy of their file on payment of the statutory fee of £2 so perhaps they are waiving this fee.

Equifax offer an online service where you can view the contents of your file immediately for £8.50 and I use that service every six months or so. Oddities can arise and it's not a bad idea to check up occasionally.

[Boro97]

Originally Posted by Ender

Ian, I did a search for "Experian credit scoring" and found the site you mentioned. They seem to do a free credit rating check, but is there a catch?

I'm interested in giving it a try.

Cheers,
Ender.

No catch mate there's a 30 day free trial of the services but when you first join you need to give credit card details , nothing is taken of your card , you must cancel before the 30day free trial is up otherwise £4.50 charge per month i've used it. here's there link https://www.creditexpert.co.uk

[mark611]

Originally Posted by Ian J

Equifax offer an online service where you can view the contents of your file immediately for £8.50 and I use that service every six months or so. Oddities can arise and it's not a bad idea to check up occasionally.

£8.50 seems like a lot of money for some date, which they also charge borrower for.

[Ian J]

Originally Posted by mark611

£8.50 seems like a lot of money for some date,

They charge £2 to send you a copy of your credit file through the post and £8.50 if you wish to view it immediately online.

I am happy to pay £8.50 once or twice a year to make sure that no gremlins have crept into my file. Others may not be but that is their choice.

[Nick Dyer]

I quite agree with Ian, it is nice to have the choice.
Having the facility to be able to check your credit standing for such a low fee is a major step in helping us all to monitor and avoid identity theft and debt problems.

[miketombs]

Originally Posted by Psycho Savager the 28th

I'm a university student and I've just got my first credit card. I'd like to know how credit ratings work - do you get points every time you buy something and pay for it promptly? What happens to your score if you don't use your card at all?

Just remember that the amount printed at the top of the statement is a credit limit, not a target!

[miketombs]

There's a really good article in the Guardian today about credit ratings and how thet work. Have a look at http://www.guardian.co.uk/money/2007...nt.creditcards