Credit Rating Rant Watch

suek
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#61
Report 10 years ago
#61
(Original post by Spotty Dog)
A current account is considered credit, however in the day and age that we are in, many creditors overlook it as credit.
It's only counted as credit if you have the facility to go overdrawn (authorised or not).

For example, many under 18 accounts, if you had £5 in your account, would not let you make a £10 purchase (card would be declined). Usually once you upgrade to a 'big person's' account of any sort, you are capable of still making that purchase, and going £5 overdrawn, and paying the fees that go with it, too. So then yes, it is counted, but not before.
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Spotty Dog
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#62
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#62
(Original post by suek)
It's only counted as credit if you have the facility to go overdrawn (authorised or not).

For example, many under 18 accounts, if you had £5 in your account, would not let you make a £10 purchase (card would be declined). Usually once you upgrade to a 'big person's' account of any sort, you are capable of still making that purchase, and going £5 overdrawn, and paying the fees that go with it, too. So then yes, it is counted, but not before.
Yeah, but you don't begin to build a real credit history until you turn 18 anyway. :P
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DannyOwens
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#63
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#63
I worked for a Finance Company for 2 years and now work at a high street bank, i know what is and isn't classed as credit. A current a/c is classed as a line of credit as you can go overdrawn on it, even if the facility is not activated. However, if you have a solo card, you cannot go in debit on your account - it just declines in the store.

It is classed as an item of credit regardless of it's o/d status for a number of reasons. When underwriting a credit application a number of factors need to be assessed, such as a customers ability to pay back the loan for example (not possible without a c/a as no Direct Debit could be set up!), location of customer - you need to be certain that the customer is at that address... If you want to build a credit profile, open a store card, use it once, pay the balance and then leave it active... or with a mobile contract...
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Joanna May
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#64
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#64
(Original post by DannyOwens)
I worked for a Finance Company for 2 years and now work at a high street bank, i know what is and isn't classed as credit. A current a/c is classsed as a line of credit as you can go overdrawn on it, even if the facility is not activated.
Yes, but it might as well not be classed as credit because barely any major banks will accept it as evidence of a credit rating. So while technically it counts, in practice a current account is normally worthless as evidence.
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DannyOwens
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#65
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#65
See above, i edited the post *(i didnt see the 2nd page!)
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Clubber Lang
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#66
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#66
thign is with credit - if you never borrow it doesnt help build up your strength - havign credit and using it widley is good for you

also there is no such thign a a rating

each comapny wil laccess the info held on you (by equifax/experian etc) and 'score' your rating but each company wil ldo it differently
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Teddy1692
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#67
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#67
hey dudes,

this is the most comprehensive article i've found on lookin after ur credit rating as a student. Its pretty long tho so make sure you have ur thinkin cap on!

Take much longer than 1 month to get a good credit rating sadly...

http://www.flisolo.com/money/you-and-your-credit-rating
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Apagg
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#68
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#68
(Original post by cpj1987)
It takes 18 months to sort out a credit rating? I was hoping it wouldn't be that long...because now I'm even stressing about how I'll be able to rent somewhere to live when I graduate. Landlords do credit checks...

What a mess...I didn't realise going overdrawn a couple of times would do this much to me; and those times haven't even been my fault.

Cardboard box when I finish uni then...

I really don't want to take out a credit card - I know I could just use it as my debit card and pay off with my money straight away, but that's so much hassle.
Then get one and cut it in half straight away. No risk of using it and you'll slowly build a credit history & rating.
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Gemz87
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#69
Report 10 years ago
#69
Hmm seems that a lot of students are having problems with not having any credit history. It should be something colleges make you aware of, getting a mobile contract or a credit card at 18 is sometimes a good idea.
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flipshot
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#70
Report 10 years ago
#70
One way you can improve your credit rating if you don't want to be stuck in a contract or get a credit card. Is to either get one of the SIM Only Pay Monthly deals where you only need to give 30 days notice to cancel or Virgin Mobile do Pay As You Go by direct debit where you don't pay any line rental you just pay for the calls and texts you have made that month.
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