How bad does your credit rating have to be before u are refused credit?

Question

havent got any ccj's or anything but have had one or two late payments this year. how much can these effect ur credit score.

Answer 1

Credit problems begin with high interest loans and then proceed to refusals of credit. You are wise to stay away from credit cards except for dire emergencies so keep the cards out of sight out of mind but get at least one to start a credit history for yourself. Credit cards are great for needs but make sure they are paid off on time, in full, before they are due. If you've had one or two late payments it may be a sign that you are starting to live at or below your income level so strive to reduce expenses. This doesn't mean to go without but to make wise choices about what you spend money on and have a plan for future needs should you lose your income for a week, month or several months. Start now with a retirement fund that you'll have in your golden years even if you only contribute for 5-10 years, the sooner you start the more you will have. Something like a 401K or IRA will help with your tax liabilities immediately and the interest will grow with compound interest towards a richer tomorrow. Use credit only for emergencies or big ticket items you cannot afford to pay cash for. Do you know how many people are paying $1 million for a $300K after interest??? Don't be one of them. Let your money work for you.

Answer 2

The question isn't about being refused for credit, the question should be about the quality of credit offered. There are more and more shady companies out there who are taking advantage of people with bad credit. I don't have an account with them, but I have read a lot of negative about Capital One (they do not report their customers credit limit to the reporting agencies...which hurts people's debt to credit ratio, and they have a policy of offering those with bad credit lots of cards with very low limits thus increasing the chance of greater fees). There's talk about Congress setting forth limits to these companies who are raking in billions.
Assuming you're talking about getting new credit cards, you can go bankrupt and someone will offer you credit. However, those offers usually are the exact kind you need to run from. You don't sound like you're anywhere near this kind of problem. Everybody is late with a payment now and then (that's why many companies have a grace period). If it's not with the same company repeatedly and it's not later over 30 days, most of the time it won't have any effect on your credit score. Now if you always make your car payment 2 weeks late, or you're only late once with the power bill but it's two months late....that's when you need to worry.
If I were you I would do some research on the credit scoring process. You would be suprised how much is calculated into that number. I don't know everything but after making some mistakes in college (ie applying for every card offered, and running up the charges to stay afloat) I've been trying to be better. I bought Personal Finance for Dummies and have tried to be good. Even though I make mistakes (cable bill was due last week...ooops!) my credit score has gone up as I've paid more off and have established a trend of paying on time.

Answer 3

If you have never borrowed before, your credit rating may be low simply because there is no data on it, in other words you have no credit history and therefore nothing on which the phone company can base a lending decision. Contrary to popular belief, job & salary do not have ANY impact on your credit rating. It might be worth checking your credit report if you are concerned. The major players are: Equifax and Experian. You can also request a statutory copy at £2. A score above 475 is considered excellent. It is a good idea to keep a check of your file in the event of ID theft. Why don't you start with a PAYG phone and then see if they will upgrade to a contract after 6 months or so. Try Vodafone or Virgin? Whilst I commend you for not getting into debt by borrowing heavily, why not try and build up some credit history by applying for a credit card (perhaps with a low limit so you do not build up too much debt), and then try again in 6-12 months? This can only stand you in good stead for the future when, for example, you might want to apply for a mortgage. You could also try other phone companies or apply for a contract online; just because one company has said no does not mean others will too. Hope this helps.

Answer 4

It depends on the lender. Some may require a score of 650 or more. Others may make loans when the score is 550 or even lower. It can also depend on what type of credit. If you are purchasing a home, then you may get a loan at a lower score but may not qualify for a credit card of car loan. Most lenders will not report a late payment until it is 30 days late or more. That can affect your score dramatically.

Answer 5

You have to know your credit score at least 630 to get a lot of credit. Try not to hav more than 1 late payent per account

Answer 6

Yours sounds fine. Just be careful. If your late payments are because you cant afford to pay on time then is credit a good idea?

Answer 7

i got 40 grand on cards , had a couple of late payment and they still keep offering me more credit , don`t worry at all

Answer 8

they will be off your credit report in 12 months as far as i know

Answer 9

Its up to the individual lender. Each company has its own policies

Answer 10

dont think that would affect it to much. it ccjs you have to worry about.