As a foreigner living in the UK for a decade now I still can't wrap my head around this whole credit score thing. I'm 51 so definitely not a child, stable job, stable income, stable family life. Bought a car taking out a loan, never missed a payment in these 10 years living in the UK, not even during Covid, not for the loan or any bills or rent. And still my credit score doesn't move from 610 out of 1000. Everybody says oh you need to take out a credit card, do this, do that... I don't get it. Why do I need to get myself into debt to prove I'm a good customer? Because credit card is basically that. I would spend money I don't actually have. I don't need it, I can pay for my expenses on my own and if I can't, I was taught by my parents to save money for things I want and that's what I'm doing. I save money for new furniture, I save money for our holidays, spending only as much as I can afford. But according to the British system being responsible is not the right way to go, you can only prove how responsible you are if you go into debt and pay them on time. Weird system...
yeah i want an answer to this question.. i have credit cards and phone contracts on my account and theyre all getting paid but each month the score doesnt increase so whats the point?
Also as a foreigner living in the UK, I too find this to be a weird system. Although when I moved here, I was too young to even know or care about credit scores. The whole point is to be able to prove that if you do decide to borrow money, you can be trusted to pay it back. It’s a weird system, I agree, but if you want your score to improve you should probably play the game. You say you can pay for your expenses on your own - great! If you were to get a credit card, you could then move some/as much of your expenses onto it, only buy what you need and/or can afford (which you already do), and pay off your credit card in full each month so you don’t pay any interest. That way, you can build credit here in the UK, and some credit cards even give you really good benefits and rewards. Some do have a yearly cost yes, but they can be very much worth it. Again, silly system I agree, but it’s not that hard to play the game. Credit cards aren’t necessarily evil if you treat them as a tool to build credit and earn rewards, and not as ‘free money’.
@@Mxj481 I understand what you are saying but that still doesn't change the fact that the system is trying to force you to borrow money, even if you don't need it, just to show that you are financially stable. Isn't it better proof that I am able to pay for my expenses and for years haven't had a single late payment, neither in my bills or paying back my loan for the car? In my opinion this is a much better indicator than a constantly paid back credit card balance... It's a totally possible scenario that somebody looses control of their finances, runs out of money before payday, uses the credit card, and than puts the money back when they get paid, just to repeat the cycle every month. They will have a high credit score and you will never even know they struggle with money...
My challenge is I have a very high credit score but I’ve recently been refused credit from Barclays Partner Finance ?? And I can’t see why, can you help ?
thanks a lot . I am trying to open a business account in the UK and they want to conduct Credit Reference Fraud Prevention checks .... I was not sure what they were .
Hey! I have 2 questions 1) How do I add in rent payments to enhance credit score? I transfer to a landlord monthly 2) I have lived in multiple addresses and this flagged up on mine - what should I do when I change address to avoid any problems? They are updated with my banks any time I move! Thank you!
The whole system is difficult to understand, ambiguous and lenders are not specific when they decline you for credit. For example, if I have a credit score of 899 out of 1000 (which would reflect an excellent report) and am declined - I have no idea why so cannot address the issue. When you have very specific questions regarding this issue or any other issues the information provided is generic and non specific. Reform it and make it a universal score with one central agency with criteria that is easy to understand, manage and rectify issues - or do the government want to complicate personal finance beyond belief so people are not able to take control of their finances and be in constant debt?
I have a loan a mortgage and a few credit card balances. My score is excellent ATM . If my score was dropped to poor would this affect my current credit balances mortgage etc used or just future credit I apply for ? Tia.
I had situation a bit strange to me. Please advise if you can, I have relocated to uk in December 2022. Started my job in mid February 2023. Paying rent ( no direct debit) , tax and gym paid direct debit and in time. Also made some saving untill now (May). Register for a year at the address, registered at election. In April got credit card onecapital. Before that i got this card my score for 839. In May my credit score turned to 639. Why it could happen? I have used credit card about 60% of limit. But its not paid yet, it would be withdrawn on 10th june. I have set up the direc frbet for full amount to be withdrawn to pay credit card.
Hi there 2 questions Are all the interests on credit cards have the same rules ? If I just pay the minimum amount every month do I still pay interest ? Because I think that some card they charge your interest after 1 year Thanks !
Hi Makiroll, the interest rate will vary on every card. So if you think you're have to pay some of it then it's important to go for a low rate. Unless you have a 0% purchase credit card, you will pay the interest on any balance that is left each month. The minimum repayment means you don't get charged fees or missing a month
Do the credit card lenders look into all hard searches as one: like both current account and credit card searches? or do they just account for the credit searches?
Hi Andy. Am a person of foreign national and I relocated to UK four months ago and I tried to get my credit scores using different platforms but due to the less information they have about me am not able to see my score/ report. Kindly can u share your knowledge regarding this issue. Hope so you will revert. Thank you.
@andy same question here though I've lived in the uk for 8 years now but never took a loan or has debt here...would love to hear how to built up a good credit score.
Thanks Andy, just wondering by what percentage credit card utilisation has to be reduced before impacting on your score? i.e. if at 90%, would reducing to 80% or 70% make a difference, or would you have to reduce to 60% or 50% to increase your score? Thanks
As a foreigner living in the UK for a decade now I still can't wrap my head around this whole credit score thing. I'm 51 so definitely not a child, stable job, stable income, stable family life. Bought a car taking out a loan, never missed a payment in these 10 years living in the UK, not even during Covid, not for the loan or any bills or rent. And still my credit score doesn't move from 610 out of 1000. Everybody says oh you need to take out a credit card, do this, do that... I don't get it. Why do I need to get myself into debt to prove I'm a good customer? Because credit card is basically that. I would spend money I don't actually have. I don't need it, I can pay for my expenses on my own and if I can't, I was taught by my parents to save money for things I want and that's what I'm doing. I save money for new furniture, I save money for our holidays, spending only as much as I can afford. But according to the British system being responsible is not the right way to go, you can only prove how responsible you are if you go into debt and pay them on time. Weird system...
yeah i want an answer to this question.. i have credit cards and phone contracts on my account and theyre all getting paid but each month the score doesnt increase so whats the point?
I had the same conversation with my friend this morning, it is really annoying how a debtor you must become to show you are a good customer...😮
Also as a foreigner living in the UK, I too find this to be a weird system. Although when I moved here, I was too young to even know or care about credit scores.
The whole point is to be able to prove that if you do decide to borrow money, you can be trusted to pay it back.
It’s a weird system, I agree, but if you want your score to improve you should probably play the game. You say you can pay for your expenses on your own - great! If you were to get a credit card, you could then move some/as much of your expenses onto it, only buy what you need and/or can afford (which you already do), and pay off your credit card in full each month so you don’t pay any interest.
That way, you can build credit here in the UK, and some credit cards even give you really good benefits and rewards. Some do have a yearly cost yes, but they can be very much worth it.
Again, silly system I agree, but it’s not that hard to play the game. Credit cards aren’t necessarily evil if you treat them as a tool to build credit and earn rewards, and not as ‘free money’.
@@Mxj481 I understand what you are saying but that still doesn't change the fact that the system is trying to force you to borrow money, even if you don't need it, just to show that you are financially stable. Isn't it better proof that I am able to pay for my expenses and for years haven't had a single late payment, neither in my bills or paying back my loan for the car? In my opinion this is a much better indicator than a constantly paid back credit card balance... It's a totally possible scenario that somebody looses control of their finances, runs out of money before payday, uses the credit card, and than puts the money back when they get paid, just to repeat the cycle every month. They will have a high credit score and you will never even know they struggle with money...
You most likely already do this but simply the act of putting your self down to vote against the place you live helps
Ace. You’ve nailed it.
thank you so much for covering this topic andy!! much appreciated.
Glad it was helpful!
My challenge is I have a very high credit score but I’ve recently been refused credit from Barclays Partner Finance ?? And I can’t see why, can you help ?
Thanks Andy. Would you kindly do a video on mortgage (not first time buyers). This video really is helpful towards mortgages too.
Hi Tina. Have you seen this one on remortgaging and LTV? czcams.com/video/NL9qYUlxuA4/video.html
thanks a lot . I am trying to open a business account in the UK and they want to conduct Credit Reference Fraud Prevention checks .... I was not sure what they were .
Hey! I have 2 questions
1) How do I add in rent payments to enhance credit score? I transfer to a landlord monthly
2) I have lived in multiple addresses and this flagged up on mine - what should I do when I change address to avoid any problems? They are updated with my banks any time I move!
Thank you!
Thanks for the very informative videos !
Glad you like them!
Who makes the credit report? I don’t get it
The whole system is difficult to understand, ambiguous and lenders are not specific when they decline you for credit. For example, if I have a credit score of 899 out of 1000 (which would reflect an excellent report) and am declined - I have no idea why so cannot address the issue. When you have very specific questions regarding this issue or any other issues the information provided is generic and non specific. Reform it and make it a universal score with one central agency with criteria that is easy to understand, manage and rectify issues - or do the government want to complicate personal finance beyond belief so people are not able to take control of their finances and be in constant debt?
I have a loan a mortgage and a few credit card balances. My score is excellent ATM . If my score was dropped to poor would this affect my current credit balances mortgage etc used or just future credit I apply for ? Tia.
Thanks .. nice explanation 👍
Glad you liked it
Any update on Chase current account in the UK….. Been holding out on any switches
Nothing yet!
How do they check you out is it your bank account or is it your name and address
I had situation a bit strange to me. Please advise if you can, I have relocated to uk in December 2022. Started my job in mid February 2023. Paying rent ( no direct debit) , tax and gym paid direct debit and in time. Also made some saving untill now (May). Register for a year at the address, registered at election. In April got credit card onecapital. Before that i got this card my score for 839. In May my credit score turned to 639. Why it could happen?
I have used credit card about 60% of limit. But its not paid yet, it would be withdrawn on 10th june. I have set up the direc frbet for full amount to be withdrawn to pay credit card.
Does your credit score and credit reports gets carried if u want to permanently move to uk from canada?
Hi there 2 questions
Are all the interests on credit cards have the same rules ?
If I just pay the minimum amount every month do I still pay interest ? Because I think that some card they charge your interest after 1 year
Thanks !
Hi Makiroll, the interest rate will vary on every card. So if you think you're have to pay some of it then it's important to go for a low rate.
Unless you have a 0% purchase credit card, you will pay the interest on any balance that is left each month.
The minimum repayment means you don't get charged fees or missing a month
Great video. Ty. What sort of credit score/report is required for AMEX?
@@Equinox4523 I am thinking about getting one but not sure if any good.
@@Equinox4523 as in being accepted in most places and ongoing cashback
Hi Andrew. As Gary has already commented its all down to individuals. So go via a credit eligibility checker to see how you fit.
Do the credit card lenders look into all hard searches as one: like both current account and credit card searches? or do they just account for the credit searches?
Yes your current accounts, loans ,
Hi Andy.
Am a person of foreign national and I relocated to UK four months ago and I tried to get my credit scores using different platforms but due to the less information they have about me am not able to see my score/ report.
Kindly can u share your knowledge regarding this issue.
Hope so you will revert.
Thank you.
@andy same question here though I've lived in the uk for 8 years now but never took a loan or has debt here...would love to hear how to built up a good credit score.
Thanks Andy, just wondering by what percentage credit card utilisation has to be reduced before impacting on your score? i.e. if at 90%, would reducing to 80% or 70% make a difference, or would you have to reduce to 60% or 50% to increase your score? Thanks
So Experian say that 25% per card is a good thing to aim for. I'd imagine that the closer you get to it the better it will reflect on your report.
First taxes , now credit score 😢 I'm really not enjoying this adult thing
Do you have a video on best bank account to open for young Kids. Looking to open an account for my 14yo sis, any advice?
No yet! It is on the list!
Andy any news yet on chase bank
Nothing yet!
First 👍