Credit scores and credit reports explained (UK)

I get a lot of questions about credit scores and credit reports, so in this video I'll take you through the basics - exactly what they are, why they are different and when they matter.

W A T C H N E X T

How to check your credit report for free

Can bank switching hurt my credit score

#CreditReportUK #creditscoreUK #creditrating

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A B O U T A N D Y

DISCLAIMER
Content in these videos does not constitute regulated financial advice. Any offers mentioned were correct at the time of filming.

[viktoriatoth]

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...

[yogiparashara]

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 ?

[SiGr]

thank you so much for covering this topic andy!! much appreciated.

[lynnemalcomson]

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!

[tinad]

Thanks Andy. Would you kindly do a video on mortgage (not first time buyers). This video really is helpful towards mortgages too.

[payambagheri]

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 .

[alial-isawi]

Who makes the credit report? I don’t get it

[charliestewart]

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.

[sallyaber]

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.

[thechosenone]

Thanks for the very informative videos !

[ryancollins]

How do they check you out is it your bank account or is it your name and address

[andreweyes]

Great video. Ty. What sort of credit score/report is required for AMEX?

[harshshah]

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?

[MichaelSpedding]

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?

[gaurav_vibes]

Does your credit score and credit reports gets carried if u want to permanently move to uk from canada?

[Refertoneee]

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 !

[jomonmathew]

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.

[TheChromeCookie]

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?

[sncl]

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

[Victoriaakunyili]

First taxes, now credit score 😢 I'm really not enjoying this adult thing