Is it possible to have a credit rating that's too good?

retired_linton_justin · 09-12-2007, 11:48 AM

Quote:

Originally posted by Retro:
Was that to me or FBT?

you, in case you thought i'd had any previous loans.

retired_princesspouty · 09-12-2007, 11:49 AM

www.moneysavingexpert.com

retired_justin05 · 09-12-2007, 11:50 AM

Quote:

Originally posted by fazpac:
instead of opening a new fred - Can anyone recommend or know of any deals with regards to current accounts?

http://www.moneysupermarket.com/savings/

retired_linton_justin · 09-12-2007, 11:51 AM

Quote:

Originally posted by Retro:
www.moneysavingexpert.com

Great advice they give:

Quote:

If you're paying interest on your credit cards, get up off your backside and sort it out. Savings in the thousands are possible and there's a special 'no-hassle' solution too

Um, what do you think im trying to do ffs

retired_linton_justin · 09-12-2007, 11:54 AM

Quote:

Credit card companies reject you for always repaying cards in full. The most profitable credit card customer is perpetually in debt, never defaulting, always paying just the minimum (see Danger Minimum Repayments article). Thus if you pay off in full every month, or always shift debt to 0% cards, you may be rejected for further credit.

Punishing the careful ifs :thdn:

retired_princesspouty · 09-12-2007, 11:54 AM

Quote:

Originally posted by Rocky Rockstar:
<BLOCKQUOTE>Originally posted by Retro:
Was that to me or FBT?

you, in case you thought i'd had any previous loans. </BLOCKQUOTE>
Ok. I'll explain it a bit better.

Halifax will use data about ALL of their previous customers (or at least those within a certain timeframe). Think of it like a huge statistical database from which they obtain information on customer behaviour and what 'traits' people have which allow them to isolate certain people.

It's possible that Halifax have a system that for this product is looking for likely defaulters (it's a credit card - they want you to have a balance on it). Therefore, their credit scoring system will be looking for people who match the profile of someone who doesn't pay off their bill every month. If your profile doesn't match this 'ideal customer' (from their point of view) then you won't get the card.

Loans are different - they don't want you to default they want you to pay it off. In that instance they'd look for someone who matched the profile of a non-defaulter - and you'd probably pass with flying colours.

Some of the stuff that is used as criteria is bizarre, but it's just formed from statistical data.

retired_selvinel · 09-12-2007, 11:56 AM

Quote:

Originally posted by Rocky Rockstar:
<BLOCKQUOTE>
Credit card companies reject you for always repaying cards in full. The most profitable credit card customer is perpetually in debt, never defaulting, always paying just the minimum (see Danger Minimum Repayments article). Thus if you pay off in full every month, or always shift debt to 0% cards, you may be rejected for further credit.

Punishing the careful ifs :thdn: </BLOCKQUOTE>

Most people barely use credit cards, only for certain purchases when they're debit card limit won't cover it, and cheques aren't acceptable.

I've had credit cards for 4 years. Only ever used them once, and I transferred the funds across within one day.

allygator · 09-12-2007, 12:02 PM

30 day free trial to your credit report from Experian. sign up and have a look just incase there is stuff on it that shouldn't be.

retired_ehoff15 · 09-12-2007, 12:05 PM

i think these days they target women more often as well. Recently my missus and i apply for NatWest credit seperately and both of us were sucessful. Only difference is her limit is £1000 more than mine despite she earn roughly £1000 less than me per month. And they gave her two card as well, which was probably a mistake on their part. doesnt stop her from boasting that she has almost three times the credits limit than me

retired_linton_justin · 09-12-2007, 12:09 PM

Quote:

Originally posted by Retro:
Ok. I'll explain it a bit better.

Halifax will use data about ALL of their previous customers (or at least those within a certain timeframe). Think of it like a huge statistical database from which they obtain information on customer behaviour and what 'traits' people have which allow them to isolate certain people.

It's possible that Halifax have a system that for this product is looking for likely defaulters (it's a credit card - they want you to have a balance on it). Therefore, their credit scoring system will be looking for people who match the profile of someone who doesn't pay off their bill every month. If your profile doesn't match this 'ideal customer' (from their point of view) then you won't get the card.

Loans are different - they don't want you to default they want you to pay it off. In that instance they'd look for someone who matched the profile of a non-defaulter - and you'd probably pass with flying colours.

Some of the stuff that is used as criteria is bizarre, but it's just formed from statistical data.

Ah i see so me being sensible and making sure my monthly balance is always something i can pay off in full (say around £200 a month for petrol & the odd meal out) has basically put a big black mark against my name. Frankly that sucks but hey ho. My student loan doesnt count according to that money saving expert website.

Is it possible to have a credit rating that's too good?

Grab a beer, sit back and relax.

Is it possible to have a credit rating that's too good?