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Build up a credit rating

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  • 17-05-2010 12:49am
    #1
    everdead.ie
    Registered Users Posts: 9,153 ✭✭✭


    Hi,
    I took a quick search but i didn't see a thread exactly that matched what I wanted to ask. I have no credit history or rating I work with only my laser card as I have a wired dislike of borrowing money. I wanted to know if I am going to build a credit rating not only do I need to actually get a credit card but I have to use it and pay if back on time regularily?

    Then in the future because I have a history of paying my bills I get better rates and can get a loan easier?

    I also wanted to know are credit ratings transferable if I decide to go stateside? Or will I have to create an entirely new rating over there?

    Thanks
    everdead.ie


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    #2
    BuffyBot
    Registered Users Posts: 24,924 ✭✭✭✭BuffyBot


    Then in the future because I have a history of paying my bills I get better rates and can get a loan easier?

    Rates: well not specifically better, but a good credit rating may qualify you for certain products that might have better rates than the standard product, but that have stiffer "admission" criteria. A credit history will make getting further credit easier for you, that's no doubt.
    I also wanted to know are credit ratings transferable if I decide to go stateside? Or will I have to create an entirely new rating over there?

    No they are not, and yes you will :)


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    #3
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    you can build a credit history here but will need to get credit first in order to do this. apply to your bank for a small loan or a credit card and ensure payments are met as agreed.

    Credit history is a factor in determining whether a bank will give you a credit facility but it will not change the rates you borrow at. That is standard.


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    #4
    everdead.ie
    Registered Users Posts: 9,153 ✭✭✭everdead.ie


    BuffyBot wrote: »
    Rates: well not specifically better, but a good credit rating may qualify you for certain products that might have better rates than the standard product, but that have stiffer "admission" criteria. A credit history will make getting further credit easier for you, that's no doubt.



    No they are not, and yes you will :)
    chris85 wrote: »
    you can build a credit history here but will need to get credit first in order to do this. apply to your bank for a small loan or a credit card and ensure payments are met as agreed.

    Credit history is a factor in determining whether a bank will give you a credit facility but it will not change the rates you borrow at. That is standard.

    Thanks for the quick response much apreciated


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    #5
    hapenny
    Registered Users Posts: 50 ✭✭hapenny


    as far as i know its based on paying your utility/ credit card bills on time all the time. you'd be better to get some small loans and pay them like clockwork. i think that if you haven't had any loans etc its pretty much the same as havin 0 credit rating which means they view you as a risky customer even if you've a wad in savings....


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    #6
    Pythia
    Registered Users Posts: 7,469 ✭✭✭Pythia


    hapenny wrote: »
    as far as i know its based on paying your utility/ credit card bills on time all the time. you'd be better to get some small loans and pay them like clockwork. i think that if you haven't had any loans etc its pretty much the same as havin 0 credit rating which means they view you as a risky customer even if you've a wad in savings....

    No, not true. Credit rating in Ireland is only based on data from financial institutions (members of the ICB). Utility bills won't have an impact.

    A 0 credit rating is viewed as more risky than someone with a good rating generally but is still better regarded than a credit rating showing missed payments.


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    #7
    EnglishPollop
    Closed Accounts Posts: 62 ✭✭EnglishPollop


    everdead.ie wrote: »
    Hi,
    I took a quick search but i didn't see a thread exactly that matched what I wanted to ask. I have no credit history or rating I work with only my laser card as I have a wired dislike of borrowing money. I wanted to know if I am going to build a credit rating not only do I need to actually get a credit card but I have to use it and pay if back on time regularily?

    Then in the future because I have a history of paying my bills I get better rates and can get a loan easier?

    I also wanted to know are credit ratings transferable if I decide to go stateside? Or will I have to create an entirely new rating over there?

    Thanks
    everdead.ie

    Maybe try getting something like a contract mobile phone or a catalogue? Both of these affect your credit rating and not as scary as a credit card!


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    #8
    Pythia
    Registered Users Posts: 7,469 ✭✭✭Pythia


    EnglishPollop wrote: »
    Maybe try getting something like a contract mobile phone or a catalogue? Both of these affect your credit rating and not as scary as a credit card!

    Sorry but they don't actually. Only financial institutions who are members of the ICB.


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    #9
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    Typically banks credit "score" loan applications based on the information you provide in support of your loan. Based on a set of rules, they translate into a score which determines whether you qualify for a loan or not. So one such rule could be "Customer must have a bank account for over 2 years" and so on. These rules are usually coded into a software system. Of course no bank will share their criteria with you (as it depends on a lot of internal / external factors) otherwise it would be very easy to manipulate the rules to suit your circumstances.

    Regardless if you have a credit history on the ICB or not, personal loans are always credit scored. This primarily determines if you get a loan or not (before ICB). If your ICB history is not great or you haven't disclosed the other loans you have out there, then this can form the basis for a decline.


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