THA LIFESTYLE
SCORING:
CALCULATE IT?
Almost all lending agencies and
banks are linked to these credit
agencies’ computer systems.
For example when you apply
for a mobile phone contract
or credit card you might have
experienced a wait of a couple of
minutes. Then the sales person
or personal banker would have
told you whether you’ll be getting
the phone or credit card. Basically
once you have given your personal
details, the phone sales person’s
computer connects to the credit
referencing agency’s computer
and checks your details. Then it
assesses your risk criteria based
on the information already in the
credit reference agency’s system.
Nevertheless credit referencing
agencies do not say whether
someone should or shouldn’t get
credit but they will inform the
risk category you are in so the
lender’s computer programme will
decide to accept or decline the
application.
So are these credit rating
companies always correct? It
seems not. They do make mistakes
but those mistakes are at your
expense! The most horrific thing
is that all these agencies are
collecting and analysing data in
different ways so there may be
three different scores for the
same person! Sometimes they
make mistakes by adding irrelevant
data or incorrect data to your file
which affects your overall score.
There have been many instances
where people’s lives have been
ruined because of incorrect
information on their credit file. It
is the credit reference agencies’
responsibility to keep and maintain
accurate information but if you
find that your credit request has
been turned down, then it is worth
taking the details of the particular
agency and requesting for more
information.
If you find any incorrect information
it’s very important to write to them
with evidence (if applicable) and
make sure to correct the file they
hold concerning you. You can also
take this matter to the Information
Commissioner Office (ICO) to make
a complaint. More information is
found on www.ico.gov.uk.
You can now see how vital it is to
keep the credit records in a perfect
order and maintain it for the rest of
your life,
Here are some top tips to keep
your score high.
• Pay your bills monthly. Even if
you can’t afford to pay them in
full, make sure to pay at least the
minimum payments.
• If you have missed even one
credit card payment, call your
credit card company and apologise
for it and ask them to waive the
charge. This means the missing
payment detail will not be sent to
the credit referencing agency.
• If you are a student or don’t
have a permanent address, make
sure you include your name in
the electoral register with an
address which can be of your
relatives’ and keep that as your
main address. So wherever you
move temporarily, you can use
that address as your address for
correspondence.
• Even if you don’t need a credit
card, have one! Use it regularly
and pay the balance off monthly.
Remember, having no credit
history is also equal to having a
bad credit history!
• Obtain your credit files at least
once a year and check them
carefully. Please note obtaining
credit reports more often will also
go against your score so an annual
review is preferable. If you find
incorrect information, contact the
agency directly and get them to
rectify it immediately.
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• If you have been rejected credit,
don’t apply again for another
couple of months as