Student finance - Credit score? Watch

scrunkie
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#1
Report Thread starter 4 years ago
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Hi I have a few overpayments from Student Finance which I can pay back monthly- no issues there. I was wondering if I do enter a Direct Debit with them to repay these overpayments, if it'll improve my credit score?

As I'm young and haven't had many (any) direct debits or contracts, my credit score is low so I'm looking for ways to increase it.

Would it be increased with these payments, if they're all made on time?

Any other ways to increase the credit score?
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NX172
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Report 4 years ago
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Student loans are considered good loans. It won't affect or change your chances of applying for credit / loans. (Some banks do take them into account, but very very few) Heck, they don't even show as debts on your credit report.

To improve your credit score ensure
- You're registered on the electoral roll. This is a huge contributing factor towards getting a decent credit score
- The average age of your credit accounts is greater than 33 months. (Basically don't start opening a ton of credit accounts)
- Your credit limit is a minimum of £1000
- Your youngest credit account is at least 6 months old
- You are using a low percentage of available credit
- You are making regular payments to your credit commitments on-time
- To increase your credit limit as high as you can.
- Increase your overdraft limit

Check your credit rating using experian or equifax. Many financial organisations use them to assess your credit rating. However, be aware that every lender has their own credit scoring system on top of your experian / equifax score, meaning every lender will give you a different decision.

Source: Experience (999 rating) + Experian
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