what exactly affects credit rating?

turf

does leaving a credit card maxed out and taking the minimum out of your account every month affect it?

does a student overdraft running on into your working career for a year affect it?

what other things do i need to look out for? btw, just finished college, working regular job now so gonna be payin of debt soon but wondering if my credit rating has been scarred... thanks

jackbhoy

Paying minimum amount on cc shouldn't really affect it too much. The main things are flags for missing payments on bills, that includes bills from utilities or mobile phone operators, not just transactions going through you bank. Most banks now set credit ratings based on data from multiple sources, so if you fail to pay a couple of phone bills or have been in arrears on a loan that would set your credit grade back a few points.....

jhegarty

jackbhoy wrote: »

Paying minimum amount on cc shouldn't really affect it too much. The main things are flags for missing payments on bills, that includes bills from utilities or mobile phone operators, not just transactions going through you bank. Most banks now set credit ratings based on data from multiple sources, so if you fail to pay a couple of phone bills or have been in arrears on a loan that would set your credit grade back a few points.....

completely wrong...


missed payments on loans from banks , some credit unions and some credit cards...

court judgments...


nothing else...

more info here : www.icb.ie

stepbar

jhegarty wrote: »

completely wrong...


missed payments on loans from banks , some credit unions and some credit cards...

court judgments...


nothing else...

more info here : www.icb.ie

It's important to be clear about credit ratings - ICB and all that and what effects you getting a loan from a particular institution. You may have a clear credit rating but your account maybe in sh1te - e.g no credit days, high credit card debt. You may have never missed a payment but it can still effect you getting a loan.

jackbhoy

jhegarty wrote: »

completely wrong...


missed payments on loans from banks , some credit unions and some credit cards...

court judgments...


nothing else...

more info here : www.icb.ie

Really? So you are saying banks don't use any other data to build up credit ratings and scores on customers other than ICB?

unclebill98

Cant talk about all banks but there are other things that can effect you credit rating.

The bank i work for have an internal system to monitor your account activity. Based on the running of your account the bank is able to pre-approve your account for certain things like overdrafts or loans or credit cards. There is a limit to the amount the is pre approved any thing above that requires human intervention into any application and can result into the application getting a more closer look. I would assume that banks have this in there systems.

So, just paying the minimum on your CC is one thing that banks do not like seeing, it shows poor management of your money. Also exceeding your CC limit. Missed payments on loans are of course a big thing. Having one ain't bad any more is a big negative against you. Missing DD for bills is not a major thing, but seeing they inform you before taking the money you don't really have an excuse.

Also, if your getting your wage and by the time you get paid again your wage is all gone. Question may be asked as to how exactly your meant to pay for the facility your looking for as you would seem to not have any spare cash to fund the loan.

Its not as simple as jhegarty put it. Your ICB report will not be effected by the way you run your account day to day. Your CC/Loan balances are on the ICB and it shows if payments are up to date and amount owed or in the case of loans if its payed off.

stepbar

Don't be giving away the trade secrets!

Two words. Repayment capacity. Got that and you can pretty much get what you want (within reason).

unclebill98

stepbar wrote: »

Don't be giving away the trade secrets!

Two words. Repayment capacity. Got that and you can pretty much get what you want (within reason).

oop's....