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How forgetting to pay your bills could wipe 130 points off your credit rating

CREDIT HORROR How forgetting to pay your bills could wipe 130 points off your credit rating.

Your credit score is a big deal – a bad one could stop you from taking out a loan.

Here’s what it takes to get a good rating according to the credit referencing agencies.
By Hollie Borland, Digital Consumer Reporter
21st February 2018, 11:59 am – Updated : 22nd February 2018, 4:50 pm

FORGETTING to pay a bill, opening a new account in the past six months and having just one credit account in your name can have a damning affect on your credit score. But what does it matter?

When you apply for any type of credit, lenders will check out your credit history and your rating – or your score – and it could be key factor in whether they decide to lend to you.

 

These are the things that can affect your credit score with Experian
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These are the things that can affect your credit score with Experian
The lower the score, the worse the rating, and the better the score the better deals you’ll be offered.

 

The Daily Mail asked credit reference agencies (CRA) Experian, Equifax and Callcredit to reveal their secrets about how they calculate your score, and credit cards play a big part.

Each CRA has a different way of scoring you – Experian rates you up to 999, Equifax out of 700 and Callcredit up to 710.

Having a credit limit of more than £5,000 can boost your score by around 20 points with Experian, while clearing your balance every month can add 60 points.

Plus spending less than 30 per cent of the limit will add 90 points to your score.

 

Not paying off a credit card bill can make your credit score drop by 130 points.

GETTY – CONTRIBUTOR
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Not paying off a credit card bill can make your credit score drop by 130 points
Failing to pay off just one month’s credit card debt with slash your score by 130 points, and defaulting on an account entirely could cost you 350 points.

Having a low credit card limit of £250 or below can also see your score drop by 40 points, and the same goes for opening a new account in the last six months.

If you’re in the market for a credit card, we’ve put together a round up of some of the best ones on the market at the moment.

How do I check my score?

READ MORE BY FOLLOWING THE HIGHLIGHTED LINK


TWO thirds of Brits have no idea what their credit score is, according to a survey by online lender MYJAR, so it’s worth checking yours out to see if you need to improve it

All three CRAs offer you the chance to view your score, report and more for a monthly fee BUT you can get hold of your score for free without paying for a subscription.Experian – Sign-up to its CreditMatcher service which will give you access to your score and help you shop around for deals you are likely to be accepted for. If you want access to your full report you’ll pay £14.99 a month after a 30-day trial period ends.Equifax – You can get your Equifax report AND score through a website called Clearscore.

 

 

 

 

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