I should have mentioned the UK's three major credit reference agencies in the video, but I forgot. These agencies are Equifax, Experian, and TransUnion, and they each hold credit information about you, which lenders use to make decisions. You can check your credit score by signing up online with any of these three credit reference agencies via their website.
I always learn a lot when I watch your videos. Once I missed passing my council tax on time my credit score dropped. It took a while b4 it came up again. Can setting direct debit on monzo or revolut affect your credit score? Or is it just the standard bank?
I am glad you always learn a lot when you watch my videos. I do not know if setting direct debit on Monzo or Revolut affects your credit score. As stated in the video, if your goal is to improve your credit score, I recommend setting up a direct debit with traditional banks such as Lloyds, Barclays, HSBC, and Natwest instead of digital banks like Revolut and Monzo. The reasons for this were already discussed in the video.
I dont think it does help but also not sure. I was using revolut for 6months and had all my direct debit payments there.opened a traditional bank account afterwards. When i check my credit score, it does not show revolut account or its activities, it says i opened a bank account recently, referring to the traditional bank acc.
1. How long after you are in the UK can you apply for a credit card? There is no official waiting period to apply for a credit card in the UK. However, most lenders prefer that you have lived in the UK for at least 3 to 6 months before applying. You are registered on the electoral roll (voter registration), which helps verify your identity and address. Have some form of income or employment history in the UK. If you are new to the country, building a sufficient credit history for credit card eligibility might take time. Some banks or financial institutions might initially offer you a credit card with a limited credit limit. 2. Which credit card is the best? The best credit card depends on your specific needs, but here are some options: For Building Credit Capital One Classic Credit Card: Good for those with a limited credit history. Aqua Classic Credit Card: Designed specifically for those building or rebuilding credit. For Rewards/Points American Express Platinum Cashback Everyday: Offers cashback on purchases. Barclaycard Rewards Card: Gives rewards for everyday spending without foreign transaction fees. For Travel Halifax Clarity Credit Card: Ideal for travelling, with no foreign transaction fees. You should compare annual fees, interest rates (APR), and additional benefits to choose the best one for your situation. 3. How many credit cards are best for building a credit score? For building a credit score, 1 to 2 credit cards are sufficient. Having a few credit cards can positively affect your score as long as you: Make timely payments. Late payments harm your credit score. Keep utilisation low. Aim to use less than 30% of your available credit. Maintain a long account history. Keep accounts open for as long as possible to build credit age. Having too many credit cards can make it hard to manage payments and can be considered risky by lenders.
When one registers on the electoral role, is it automatically updated on ones bank account? Cos i have two accounts here in the uk, Lloyds and Halifax. Initially i listened to your video, i went to my Halifax account which was the second account i created after Lloyds to see for myself but then my electral role wasn't updated so i had to raise a dispute and the asked for evidence that I have actually been enrolled. Then i wanted to do same for my Lloyds acct but they sent me a feedback after the dispute saying they noticed my dispute has been resolved. I feel its because my Halifax account is linked to my lloyds.
It's crucial to note that when you register on the electoral roll in the UK, your bank accounts are not automatically updated with this information. This update is essential as it affects your financial transactions and credit score. The electoral roll information is shared with credit reference agencies, but it's the individual banks' responsibility to incorporate this data into their systems. Here's a summary of the process: 1. Electoral Roll Registration: When you register to vote, your details are updated in the electoral roll. This can take a few weeks to process and be reflected in the system. 2. Credit Reference Agencies: Once updated on the electoral roll, this information is shared with credit reference agencies like Experian, Equifax, and TransUnion. This can also take some time. 3. Banks and Financial Institutions: Banks like Lloyds and Halifax rely on credit reference agencies to verify your information. They periodically update their records based on information from these agencies. 4. Disputes and Updates: If your bank does not have the updated electoral roll information, it's essential to raise a dispute. As you've experienced, providing evidence can significantly speed up the process, showing the impact of your actions. Regarding your specific situation: Since Halifax needed evidence to update your electoral roll status, this suggests they had yet to automatically pull the latest information from the credit reference agencies. Lloyds may have automatically updated your information after the electoral roll details were updated with the credit reference agencies. Alternatively, they might have recognised the update due to their linkage with Halifax. However, this is not guaranteed and may vary by institution and the details of their data-sharing agreements. In conclusion, while Lloyds and Halifax are part of the same banking group, they operate separate systems for managing customer information. As the customer, this means you have control over updating your details. If you encounter any further discrepancies, please follow up directly with the banks to ensure all your details are current.
Both SIM-only contracts and traditional phone contracts have the potential to impact your credit score but in slightly different ways. SIM-Only Contracts: Positive Impact: Paying your monthly bills on time for a SIM-only contract can improve your credit score. It reflects your ability to manage regular payments responsibly. Limited Impact: Since SIM-only contracts usually involve lower monthly costs than traditional phone contracts, the impact on your credit score may be less significant. Phone Contracts: Positive Impact: Similar to SIM-only contracts, meeting your payment obligations for a phone contract can positively impact your credit score. Higher Impact: Traditional phone contracts often involve larger monthly payments, and successfully managing these payments can have a more substantial positive effect on your credit history. In either case, timely payments are crucial. Consistently paying your bills on time demonstrates financial responsibility and reliability to creditors, which can be beneficial when you apply for other forms of credit, such as loans or credit cards, as lenders often consider your credit history. However, I would like to point out that missed or late payments can adversely affect your credit score. Defaulting on payments can lead to negative marks on your credit report, potentially making it more challenging to secure credit in the future. If you want to use a mobile phone or SIM-only contract to build or improve your credit score, ensure that the provider reports your payment history to credit bureaus. Not all providers report this information, so it's worth confirming to maximize the positive impact on your credit. I hope this answers your question.
I should have mentioned the UK's three major credit reference agencies in the video, but I forgot. These agencies are Equifax, Experian, and TransUnion, and they each hold credit information about you, which lenders use to make decisions. You can check your credit score by signing up online with any of these three credit reference agencies via their website.
Thank you for this. I always look foward to your videos. This is really informative
You are so welcome!
❤Bless you 🙏
Amen, and you too.
Very insightful and value packed as always 👌
Thank you. 🤗
Thank you, thank you very much for this 🙏 😊
My pleasure.
Very informative video. Thank you.
My pleasure 😇
I always learn a lot when I watch your videos. Once I missed passing my council tax on time my credit score dropped. It took a while b4 it came up again.
Can setting direct debit on monzo or revolut affect your credit score? Or is it just the standard bank?
I am glad you always learn a lot when you watch my videos.
I do not know if setting direct debit on Monzo or Revolut affects your credit score.
As stated in the video, if your goal is to improve your credit score, I recommend setting up a direct debit with traditional banks such as Lloyds, Barclays, HSBC, and Natwest instead of digital banks like Revolut and Monzo. The reasons for this were already discussed in the video.
I dont think it does help but also not sure. I was using revolut for 6months and had all my direct debit payments there.opened a traditional bank account afterwards. When i check my credit score, it does not show revolut account or its activities, it says i opened a bank account recently, referring to the traditional bank acc.
@@jescachidomadyira1965 Thanks for sharing your experience with building your credit score.
How long after you are in UK can you apply for a credit card?
Also which credit card is the best?
How many credit card is best to build credit score?
1. How long after you are in the UK can you apply for a credit card?
There is no official waiting period to apply for a credit card in the UK. However, most lenders prefer that you have lived in the UK for at least 3 to 6 months before applying.
You are registered on the electoral roll (voter registration), which helps verify your identity and address.
Have some form of income or employment history in the UK.
If you are new to the country, building a sufficient credit history for credit card eligibility might take time. Some banks or financial institutions might initially offer you a credit card with a limited credit limit.
2. Which credit card is the best?
The best credit card depends on your specific needs, but here are some options:
For Building Credit
Capital One Classic Credit Card: Good for those with a limited credit history.
Aqua Classic Credit Card: Designed specifically for those building or rebuilding credit.
For Rewards/Points
American Express Platinum Cashback Everyday: Offers cashback on purchases.
Barclaycard Rewards Card: Gives rewards for everyday spending without foreign transaction fees.
For Travel
Halifax Clarity Credit Card: Ideal for travelling, with no foreign transaction fees.
You should compare annual fees, interest rates (APR), and additional benefits to choose the best one for your situation.
3. How many credit cards are best for building a credit score?
For building a credit score, 1 to 2 credit cards are sufficient. Having a few credit cards can positively affect your score as long as you:
Make timely payments. Late payments harm your credit score.
Keep utilisation low. Aim to use less than 30% of your available credit.
Maintain a long account history. Keep accounts open for as long as possible to build credit age.
Having too many credit cards can make it hard to manage payments and can be considered risky by lenders.
When one registers on the electoral role, is it automatically updated on ones bank account? Cos i have two accounts here in the uk, Lloyds and Halifax. Initially i listened to your video, i went to my Halifax account which was the second account i created after Lloyds to see for myself but then my electral role wasn't updated so i had to raise a dispute and the asked for evidence that I have actually been enrolled. Then i wanted to do same for my Lloyds acct but they sent me a feedback after the dispute saying they noticed my dispute has been resolved. I feel its because my Halifax account is linked to my lloyds.
It's crucial to note that when you register on the electoral roll in the UK, your bank accounts are not automatically updated with this information. This update is essential as it affects your financial transactions and credit score. The electoral roll information is shared with credit reference agencies, but it's the individual banks' responsibility to incorporate this data into their systems.
Here's a summary of the process:
1. Electoral Roll Registration: When you register to vote, your details are updated in the electoral roll. This can take a few weeks to process and be reflected in the system.
2. Credit Reference Agencies: Once updated on the electoral roll, this information is shared with credit reference agencies like Experian, Equifax, and TransUnion. This can also take some time.
3. Banks and Financial Institutions: Banks like Lloyds and Halifax rely on credit reference agencies to verify your information. They periodically update their records based on information from these agencies.
4. Disputes and Updates: If your bank does not have the updated electoral roll information, it's essential to raise a dispute. As you've experienced, providing evidence can significantly speed up the process, showing the impact of your actions.
Regarding your specific situation:
Since Halifax needed evidence to update your electoral roll status, this suggests they had yet to automatically pull the latest information from the credit reference agencies.
Lloyds may have automatically updated your information after the electoral roll details were updated with the credit reference agencies. Alternatively, they might have recognised the update due to their linkage with Halifax. However, this is not guaranteed and may vary by institution and the details of their data-sharing agreements.
In conclusion, while Lloyds and Halifax are part of the same banking group, they operate separate systems for managing customer information. As the customer, this means you have control over updating your details. If you encounter any further discrepancies, please follow up directly with the banks to ensure all your details are current.
What is your view on sim only and phone contract on improving credit score
Both SIM-only contracts and traditional phone contracts have the potential to impact your credit score but in slightly different ways.
SIM-Only Contracts:
Positive Impact: Paying your monthly bills on time for a SIM-only contract can improve your credit score. It reflects your ability to manage regular payments responsibly.
Limited Impact: Since SIM-only contracts usually involve lower monthly costs than traditional phone contracts, the impact on your credit score may be less significant.
Phone Contracts:
Positive Impact: Similar to SIM-only contracts, meeting your payment obligations for a phone contract can positively impact your credit score.
Higher Impact: Traditional phone contracts often involve larger monthly payments, and successfully managing these payments can have a more substantial positive effect on your credit history.
In either case, timely payments are crucial. Consistently paying your bills on time demonstrates financial responsibility and reliability to creditors, which can be beneficial when you apply for other forms of credit, such as loans or credit cards, as lenders often consider your credit history.
However, I would like to point out that missed or late payments can adversely affect your credit score. Defaulting on payments can lead to negative marks on your credit report, potentially making it more challenging to secure credit in the future.
If you want to use a mobile phone or SIM-only contract to build or improve your credit score, ensure that the provider reports your payment history to credit bureaus. Not all providers report this information, so it's worth confirming to maximize the positive impact on your credit.
I hope this answers your question.
Thanks for this robust response. Will look out for providers that report contravt
@@datawhipper No worries.