Common Questions and Answers on Credit Ratings

Credit Rating Questions

In May we ran a Twitter party asking you to get in touch with Experian CreditExpert “James Jones” with your questions on credit ratings. It’s a topic that can really affect you, especially if you’re applying for a mortgage, loan or even a mobile phone contract but you might not know much about it.

We had some fantastic questions from everyone who took part and some really useful answers from James, leaving us feeling far more comfortable with Credit Ratings and hopefully everyone who took part too.

That’s why we decided to take the best questions from the Q&A and put them onsite, so all our members can benefit from the quick and easy responses from James. We currently offer cashback on Experian CreditExpert, so if you want to trial their tool, then make sure you get cashback too!


Checking your Credit Rating

Q: How much does it cost to check your credit rating? Is it a simple procedure?

A: You can receive a copy of your report in the post for £2. More interactive support services such as CreditExpert cost more. You can get a 30 day free trial of Experian CreditExpert and get cashback.



Q: Does a PPI claim have any effect on credit ratings?

A: No, although if you get money back and pay off outstanding debts then yes!


Q: I have kids, so at what age do credit scores start to apply, 18+ or is it younger?

A: Credit scores take effect from 18; make sure they register on the electoral roll.


What Effects your Credit Rating?

Q: I pay by cash and don’t use credit as I’m scared of debt; I have heard that makes me a bad credit risk too, is this true?

A: It’s important to build some history for when you do need a good credit rating. Bank accounts and utilities count towards your history.

New accounts negatively impact credit score in the short term until established but pay on time and they have a positive effect in the long term.

 

Q: Would changing a current account affect my credit rating, and if so, for better or worse?

A: Unlikely to be an issue but avoid consenting to many credit checks in a short period.


Q: Would a credit check for a mobile phone contract risk a negative effect on a mortgage application?

A: Applying for a new credit during a mortgage application is not advised, other finance can impact the decision of the lender, ask your mortgage advisor for advice on this.


Q: Does my credit rating (which is bad) affect my husband’s credit rating (which is good) if we want to borrow?

A: Yes if your credit reports are linked by joint credit activity, your report will tell you this.

 
Q: I recently got married, will my husband’s credit rating effect mine?

A: Getting married will not negatively affect your credit rating but applying for joint credit will link credit histories together.

 

Q: I have a mortgage but when I renew it will my partner’s credit rating effect what I canborrow?

A: If it’s a joint application then definitely, if it’s just you but you’ve got existing joint accounts then very likely. In this case it’s best to speak to your mortgage advisor.


Q: Will a bank overdraft hurt my credit score?

A: Lenders do look at level of outstanding debt so paying overdraft down is likely to help your credit rating.

 
Q: I’ve had a few payday loans, will this affect my credit rating and if so, for how long?

A: Find advice on payday loans here.


Q: Why does rating go down when people search for mortgages and have credit checks – it seems unfair?

A: Applying for credit can affect scores, multiple applications equals’ higher risk. Quotes don’t count towards credit.

Credit Cards

Q: I’ve a couple of credit cards so I can earn different rewards, would having more count against me?

A: Keep card balances low and multiple cards shouldn’t negatively affect your credit score.


Q: Is it good to keep extra credit cards you do not use to get green marks on your credit score?

A: It is good to have some mature accounts, high limits and low balances can really help your credit rating.

 

Q: Are cashback credit cards really worth it or does it encourage more spending?

A: My credit card gives “cash back” and I avoid paying them interest, so it’s basically free money.

 
Q: When does having multiple credit cards become a credit negative? Ie. More than 2, 3, 4?

A: Not always, your payment history, usage of available credit and amount of available credit will all be considered.


Q: Do partial payments on credit card balances impact your credit score and do late bill payments affect your credit score?

A: On cards you need to pay at least the minimum payment on time each month to protect your credit rating.

 
Q: How long does it take to recover your credit rating; are we stuck with a bad credit rating for life?

A: Your credit report only goes back six years so anything negative will eventually disappear.

 

Incorrect Information on your Credit Report

Q: My credit report shows 1 late payment due to direct debit fault (not my own), should I correct it?

A: You can add a notice of correction (up to 200 words) to explain issues like this to lenders.


Q: Whose responsibility is it to remove incorrect information on your credit report?

A: This is something Experian CreditExperts work with lenders on, find advice on rectifying mistakes here.

 

More tips on improving your credit rating.

Posted on 25 Jul 2014  |  Posted in  'How To' Articles
Comments
brianwhitehouse
Great advice and thinking about giving the trial ago because of it
  14 Sep 14 - 13:15
archie20
Very good
  14 Sep 14 - 13:02
wcheng85
Useful information and good to know
  14 Sep 14 - 12:50
therandike
Really helped me out
  14 Sep 14 - 11:57
Member818009531637
I was not aware you can receive a copy of your report in the post for £2
  13 Sep 14 - 22:53
Member818009495951
I found the information interesting and useful
  13 Sep 14 - 22:49
kathyvvernon
Very useful section
  13 Sep 14 - 22:49
MellyFoy
Brill wee post - very informative
  13 Sep 14 - 20:47
dawn8nov
Really usefull
  13 Sep 14 - 16:22
Sureshvgm
Excellent info
  13 Sep 14 - 13:34
julie308davis
Good blog and very useful.
I didn't know quotes were different to applications for credit!!
  13 Sep 14 - 08:04
jord21
Great advice, cheers
  12 Sep 14 - 18:24
mshalinireddy
Very helpful
  12 Sep 14 - 09:24
Kaje85
Helpful advice!
  12 Sep 14 - 08:38
adbanks1701
Thank you
  11 Sep 14 - 21:50
kian_cheng
It helps me a lot :d
  11 Sep 14 - 20:44
CMilbourn
How often do you need to provide your credit check?
  11 Sep 14 - 17:46
Nikosbw
Good info, nicely put, very helpful
  11 Sep 14 - 14:20
dhulharsh
Thanks some of the questions were really great.

I have a good credit score. But I have never applied for credit in the past.
Some have suggested that if I apply for credit my credit score will go down.

Is it possible to apply for credit without affecting the credit score?
  11 Sep 14 - 14:15
Daisymilan
Great info, thanks
  11 Sep 14 - 10:51
Member912362562314
Good info , great blog help with many question
  11 Sep 14 - 03:10
leviathan7
I hope you keep putting tips on
  10 Sep 14 - 21:08
Nigel_Littlewood
Very helpful, will look to use again
  10 Sep 14 - 20:37
raughcomarie
Learned things I didn't know - thanks
  09 Sep 14 - 17:24
Member918113227514
Awsum
  09 Sep 14 - 14:26
Cristina_Ng
Informative
  09 Sep 14 - 10:56
iandw8
Helpful information, Thank you
  08 Sep 14 - 19:32
malagoha
Well done!
  08 Sep 14 - 18:23
kamal88
This is helpful
  08 Sep 14 - 14:59
sujitkumar82
Good post..Very informative.. Thanks.
  08 Sep 14 - 12:05
Member918103573837
Good blog!
  08 Sep 14 - 10:55
waynemex
Great help thanks
  07 Sep 14 - 20:40
nicolajoanneflorist
Thanks for the info, well worth checking
  07 Sep 14 - 19:50
safpatel
Very important tips..Great job TCB
  06 Sep 14 - 18:40
njoshi
Very helpful and informative
  06 Sep 14 - 14:40
gemmaparry86
Fantastic tips and hints
  05 Sep 14 - 21:21
Lee3002
Thanks for this blog , has been a big help
  05 Sep 14 - 20:16
kamal88
This is great information
  05 Sep 14 - 14:32
owenpearce89
Easy to read and digest information
  05 Sep 14 - 09:14
dwmcole
Very helpful
  04 Sep 14 - 22:55
aghafur
Informative blog.
  03 Sep 14 - 16:36
jolophill
Good information
  03 Sep 14 - 15:41
muppie
Very precise and handy information. Thanks
  03 Sep 14 - 15:02
stefjjay
Good read, very informative
  03 Sep 14 - 12:52
lisajn2507
This is helpful to some people who are unsure on credit cards. My advice is never take cash out on credit card as interest is daily & Not monthly!!
  02 Sep 14 - 23:22
pinkthing
Really helpful, thanks for the info.
  01 Sep 14 - 22:11
ejmullis
Good info
Very helpful
  01 Sep 14 - 16:55
mally20255
This makes good reading will take note
  31 Aug 14 - 22:18
amandajury
Thankyou!
  31 Aug 14 - 21:03
Jehoelim_
A lot of helpful hints here thanks
  31 Aug 14 - 17:57
Jehoelim_
A lot of helpful hints here thanks
  31 Aug 14 - 17:57
JRochester
Great Information, thanks
  31 Aug 14 - 14:42
Member811928710139
Nice post, good answers to questions.
  31 Aug 14 - 13:03
BUR8S
Hi all, I would like to add some important information to some of the questions answers

Q: i’Ve had a few payday loans, will this affect my credit rating and if so, for how long?

Ans: The anwer to this is that it will not impact your credit rating if you make the payment on time, but taking a payday loan may impact you ability to obtain credit with some lenders, even if you pay it back on time. The reason of this is that it looks like you are desperate for credit, so if it appears on your credit report regardless of whether you paid it back on time, you will be declined for a loan. The best thing to do is never take a payday loan.

Q: Would changing a current account affect my credit rating, and if so, for better or worse?

Ans: The answer to this is yes. Its not worth changing your current account if you are looking to take credit on in the future (couple of years) as you may well be declined as the length you have held your current account gets taken into account when deciding whether to lend to you or not and it also taken into account when calculating your credit rating.

Hope these answers help.
  30 Aug 14 - 18:52
pdavuluri35759
Nice one. I had my clarified which had been nibbling me for a while.
Thanks
  30 Aug 14 - 17:51
MIKBULLET
Simple and straightforward
  30 Aug 14 - 10:51
bullet70
Gr8 advice,keep it up
  30 Aug 14 - 09:21
Jennyaaston
Great advice
  30 Aug 14 - 08:49
Rhysdonna
Thanks for the great info. Very useful!!
  30 Aug 14 - 07:31
Didster83
Excellent advice
  30 Aug 14 - 07:09
miroslawkmiecik
I have gained a lot of useful information
  29 Aug 14 - 22:51
Bayleas
Great info, thanks
  29 Aug 14 - 17:18
Thiswayup
A friend of mine told me about this blog...I don't have any credit cards but am thinking of taking one out so these q & A have been very helpful. Thx TopCashback :d
  29 Aug 14 - 14:45
alinajedrzejko
It has helped me a lot in terms of understanding how things work
  29 Aug 14 - 13:43
pedro281981
Great info cheers
  29 Aug 14 - 12:58
k1rbski88
Really good advice
  29 Aug 14 - 12:45
antlers
Very helpful detailed advice, thank you.
  29 Aug 14 - 11:31
amymax18
Good article
  29 Aug 14 - 11:23
clairb
Great blog very helpful thanks
  28 Aug 14 - 16:03
69pjc69
Handy to know
  27 Aug 14 - 23:31
Dee12121
Good, helpful information. Thanks.
  27 Aug 14 - 20:56
tomo3456
Good advice
  27 Aug 14 - 18:49
yamyamh
Really helps :d
  27 Aug 14 - 18:23
Member818005908210
Fabulous advice, changed my life.
  27 Aug 14 - 13:45
qramdada
Thank you !
  27 Aug 14 - 12:54
jmurphy51
Useful information, been worried about how student loans would affect my credit!
  27 Aug 14 - 04:15
Tsvetan
Very useful
  26 Aug 14 - 22:34
BenRhodes21
Great article, I found the customer service team very helpful when I called also.
  26 Aug 14 - 16:50
charli_1986
Lots of useful information about keeping me on top of my credit score
  26 Aug 14 - 12:12
fabatz786
Great information
  25 Aug 14 - 22:04
Bizztcb
Some really useful information to help you keep your credit score as healthy as possible, thanks.
  25 Aug 14 - 15:21
curiousbadger
Really useful to have this info posted here, thanks!
  24 Aug 14 - 07:25
kph65
Still getting used to having a credit card and as I want to improve my credit rate this is very useful information.
  23 Aug 14 - 20:21
clrbriggs
Good tips, very informative cheers
  23 Aug 14 - 14:04
StevenandRobbo119
Hi

Thanks for all the info on here it's really useful
  23 Aug 14 - 12:48
sue4liverpool
????
  22 Aug 14 - 16:08
britishguy4
Cheers
  21 Aug 14 - 14:27
bridget1958
Answered some of my questions, very helpful.
  21 Aug 14 - 10:29
anabrazil
Thanks for the info. Helped to clear a lot out for me.
  20 Aug 14 - 22:41
Gaz123football
Good info for free
  20 Aug 14 - 19:09
Didster83
Cheers
  20 Aug 14 - 11:22
rach666
Very helpful Thanks
  20 Aug 14 - 11:19
lindajwilliams
Answered questions I didn't know who to ask about.
  20 Aug 14 - 01:01
SteveT123
Thanks for this. Been an experience member for a while and well worth doing. The blog has answered a couple of queries I had. :)
  19 Aug 14 - 22:33
ColourSouls
Thanks, very informative.
  19 Aug 14 - 21:12
emmalw2812
Answered several questions I felt a bit stupid to ask. Really useful. Thanks.
  19 Aug 14 - 18:55
jodie2187
Thanks
  18 Aug 14 - 10:29
laurabrown1533
Thanks for the tips!
  17 Aug 14 - 14:13
immy257
Thanks for the useful information.
  17 Aug 14 - 13:33
Member817877966010
Terrific!!
  16 Aug 14 - 22:41
neraknai
Great Blog - clear, precise, easy to understand and very informative - Thank you :)
  16 Aug 14 - 07:28
Laurencaldwell07
Thanks for the advice
  14 Aug 14 - 18:24
selinat
Brilliant
  14 Aug 14 - 17:28
timmybaby
This is very useful and deeply explanatory , thanks !!
  14 Aug 14 - 13:24
Carlyann88
Very good tips!
  14 Aug 14 - 08:14
Evo73
Good info, very useful cheers
  13 Aug 14 - 22:23
redfoot5
Great advice - but in particular, the credit card information.
It's good to understand the effect of multiple credit cards on my credit rating.
I hold a few cards purely for miles and cashback. Keeping my balances at nil ensures that I do not adversely affect my credit rating. In fact, it appears to be a good thing,
You do need to have good control over your accounts though - careful not to get carried away and build up credit balances. Charges cards, such as American Express, take the full balance off you each month which avoids building up debt.
Good advice - thanks.
  13 Aug 14 - 22:17
HarryGower
Great blog with some good tips!
  13 Aug 14 - 21:55
shannenlucas
Very useful
  13 Aug 14 - 21:52
rusiene
Good tips
  12 Aug 14 - 20:24
Didster83
Thanks for this, has really helped me understand
  12 Aug 14 - 13:45
slimpanda
Thanks for the tips!
  12 Aug 14 - 11:43
jaclow
Thanks
  12 Aug 14 - 05:44
sperwez
Excellent keep it up!!!!
  12 Aug 14 - 00:30
Johnmacca
Really good info thanks
  11 Aug 14 - 15:20
mutleyding
Great tips :)
  11 Aug 14 - 13:29
Leighdean87
Lots of details and reliable advice
  10 Aug 14 - 21:59
Leighdean87
Lots of details and reliable advice
  10 Aug 14 - 21:59
jordanshenton
Very helpfull
  10 Aug 14 - 20:50
Big_Phil_Papi
Thanks for some very usual information.
  10 Aug 14 - 16:32
madhatter351
Good info
  10 Aug 14 - 16:29
Tonylovessean
Really hel
  10 Aug 14 - 12:24
mummytofive
Good blog with detailed advice x
  09 Aug 14 - 17:34
dunling
Useful information, good to know
  08 Aug 14 - 19:10
Westie983
Very informative especially the bit about multiple credit cards. I have a few and wasn't sure if I should close but as they have a good limit i'll keep it just in case. It's got 0 balance currently.

Thanks for the info.
  07 Aug 14 - 00:38
ryzowhitey
Good info, helped me out
  06 Aug 14 - 19:52
ryzowhitey
Nice and informative, really helped me out!
  06 Aug 14 - 19:34
ajtrading1
Good, informative blog TCB. Keep it up.
  25 Jul 14 - 17:25

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