Credit Rating

[Ann]

Not sure where to post this but would like to know if my friend is correct.

I don't have a credit card (don't believe in them) only a Debit card linked to a current account which never goes below £100. Our mortgage was paid off years ago. I don't have store cards and I have no debts at all - having been taught in life that if I can't afford something I save up for it.

When telling a friend, she said if I don't even have a credit card it would give me a bad credit rating - black mark against my name if ever in the future I needed to be checked. Surely not? Was she joking please?

[Purple_Popple]

It could well do your credit rating more harm than good ... daft as it sounds. .. banks etc do like you to have some sort of borrowing..be it a loan or by a credit card.

[RATTER15]

It will effect your credit rating, your credit rating is scored by previous history of credit and how reliable you were paying it back etc, if you haven't had and recent credit they cant judge you on your recent history.

Thats not to say it will give you a poor rating, it will probably be an "average" of "fair" rating.

No such thing as "black marks" to my knowledge.

[Ann]

Popple - that is absolutely crazy!

[Ann]

No pride in having no debts then? We don't have a lot of money and save up to pay for whatever needs replacing in our house. If I had debts I would never sleep at night.
What a world we live in!

[ummmm]

Have you got a mobile phone?

[RATTER15]

I know what you are saying Ann but realistically, It is a "Credit" rating, if you have no "credit" history how can the say that you have a good credit history? They arent saying you have a bad history, just no history.

[Ann]

Yes ummmm. its on Orange Dolphin 7 - a SIM only acount £7 a month. Does that count as being on credit?

[ummmm]

If it's contract then it counts as credit.

[RATTER15]

If you pay all your bills on time etc then that is likely to show a fair to good history, you get marked down if you are more than 3 months late with paying bills. If you have a good history with your bank that will also be a positive.

[Ann]

I don't think it is classed as a mobile phone contract ummmm, as I don't get my phone replaced free like you do on contract. Its just like PAYG only on Direct Debit.

[Ann]

Is there a website where I could do a check on myself just for interest?

[ummmm]

http://www.experian.co.uk/

[RATTER15]

I think as it is paid on DD it will be seen as regular payments and will help your credit score.

You could just check your credit score by going to http://www.experian.co.uk/experianhome3/?sc=410006&infinity=gaw~Brand%2BUK%2BENG%2BSPART%2BDESKT~BRAND%2BCSCOR%2BEXACT%2BExperian%20Credit%20Score~26341271950~experian%20credit%20score~e

[ummmm]

http://www.equifax.co.uk/

I think they are the main two that companies use for credit checks.

[RATTER15]

Ann, I am in a similar situation, never had a credit card and always paid in cash, rarely do I even use a debit card, hence a "FAIR" credit score.

[Ann]

Thanks for the links but don't want to sign up then have to cancel after the free trial comes to an end ..............

[Ann]

I'm not on my own then Ratter! You and me could show the rest of the world how to budget ;)

[ummmm]

You can get your report sent to you for about £2.

[hc4361]

Don't know why are so against credit cards, Ann. I make over £100 a year just for using one - I never pay interest as I always pay it off in full every month, so it costs me nothing.

It also gives me protection in the event of the shop going bankrupt before I receive my goods, or if there is any problem with the goods or service (providing the value of the item is over £100).

My credit score is 999.

[wimp]

Like you Ann i dont have a credit card and dont want one,i just have a debit card!My phone is PAYG! Much like you Ann if i need to get something i save for it or do without!I do not owe a penny to anyone!