Build up a credit rating

everdead.ie

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

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

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.

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

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....

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.

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!

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.

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.