How is my credit rating calculated?

[pieter]

iHow s my credit rating calculated? How can I improve it?

[boncey]

No-one will tell you how it's calculated exactly as it's a trade secret, and it differs between institutions. But you can do certain things to improve it. I've heard that every time you are refused credit it counts against you, so don't go applying for every credit card under the sun. Having no credit cards counts against you, as does having lots of them. Two or three is a good number I think. If you are having difficulty getting your first credit card, try getting a store card or two, they are easier to get and bump up your rating. I'm sure there are lots of other things you can do to help although the above is all I have heard of.

[Moomin]

Contact Equifax or Experion (the two UK agencies that pool and distribute all your credit history) to see what's on your file.

[DominicZ]

Hi, I asked about this about 2 days ago. To get a good credit rating, you need to do some of the following things: 1) Don't go into your overdraft for too long 2) When paying direct debits, they should always go through no problems (e.g. going over your overdraft limit) 3) If you have a credit card, paying off your card all at once rather than in minimum installments. 4) Using your card to its upper limit i.e. spend more!! 5) Paying any bills on time. Basically, paying in full for any direct debit or bill (not mortgages or loans, but they can help!) and staying in the clear! Hope this helps, Dominic