Have I been a victim of identity theft?

[Monkey987]

Aibu to worry about my credit score?

So I always assumed I had a 'good' credit score so was surprised when I checked recently before booking a mortgage in principle appointment with my bank that actually my credit score is low. Around 550.

I have never had any debt (except car repayments) but also very little credit/contracts to boost my score.

For a bit of background I am a care leaver with no family to rely on, got a council flat at 18 and have been very careful/worried with my money. Never had a phone contract etc. I've always saved for things and paid outright.

I've been sensible, went to uni, now earn nearly £50000 a year at 28. Have been paying car finance reliably for 2 years. Have paid all utility bills monthly/ on time for 8 years. So stupidly assumed I would have good credit.

Apparently not. I've taken out a credit card to boost my score which I'm paying back monthly via direct debit.

What else am I doing wrong?

A friend of mine said it sounds like I've been a victim of fraud. I'm now freaked out and have no one in real life to ask.

Aibu to worry?
How long will it take me to boost my score with a credit card?

I think you have to have had credit to prove your good with money. Having no credit doesn't help because they have nothing to look at. I used credit karma and it tells me what to do to improve. I'm sure one of them is have £15,000 available on credit and to use more of it

Your credit report should show you how to boost your score. Sign up to money saving expert credit club and you get a free Experian credit report each month. It will show you if there's anything in your credit record and you can see if there's anything fraudulent.

£15000? I've been given £4000. What do you have to earn to get £15000?

Thanks, I hadnt heard of them before so will definitely sign up.
I did a Halifax credit check and they just told me to get a credit card so assume if there was anything dodgy it would've appeared then?

Does using clear score affect my credit rating?

Its probably nothing to do with your earnings. If your credit score is low they won't straight up give you the £15,000.
You'll likely need to pay back the £4000, increase your credit rating and the amount they are willing to give you will increase over time.

Thanks for this. So I need to spend £4000 on the credit card to get it boosted and get them to trust me?

How long will this take? I was hoping to get a mortgage this summer

If you sign up for Experian or Credit Karma and do a check (you can get a free version but they push the paid for one) it normally tells you why your score is that number, and it gives you ‘doing well’ ‘things to improve on’ etc. Normally paying bills on time every month helps, as does being on the electoral roll.

and yes things like having proven credit record helps, so using a credit card and paying it off monthly will help.

if there are any credit agreements/dodgy financials that you haven’t signed up to, your report will show you.

Experian doesn't affect your credit score

I use it and get a report every month

Basically, as odd as it sounds, you need to get a credit card to boost it. I do believe Pay in 3 from PayPal can also boost it

Also, your credit score doesn’t actually affect your mortgage that much.

Thanks, this is all so stressful.
How long do you think I will need to use the credit card for to increase my score?

How much should I spend a month on it? Should I just use the credit card for everything?

Really?

That's good to know. I'm getting a good rate from the mortgage calculators so do you think I should just book an appointment with the bank without messing around for ages with the credit card?

I have the deposit ready to go

Get a credit card, or store card - use it and pay back for a couple of months - your score will boost significantly if you are paying it back in full.
Accept any credit you are given, (I don't think it depends on your salary) it will naturally increase as you use it.

Another big thing is making sure you are on the electoral role.

take out a credit card, spend your average shop on it, pay it back before fees. That’s how I built credit. You haven’t been victim of fraud, you just haven’t built a credit profile.

I used to have awful credit from misspending in my youth but taking out a credit card and spending about £400 a month (and paying it back in full each month) contributed to getting my score up to 999 though it’s now 993 but you get the idea 😂

I'm pretty sure I'm on the electorol role.
Do you have to sign up every year?

Thanks for this. I had no idea how much I had to spend on it a month. £400 is realistic.

Are you on the electoral roll? If you aren't, this will make a big difference to your credit score.

Thanks for the reassurance. Was just surprised when my shopping addict biological mother who had £20,000 of debt and had never paid a bill on time in her life had a higher credit score than me...

I have an "excellent" credit score and I have never had anything like £15k credit, more in like with yours, OP. I've only ever done the usual things like getting a credit card and paying it off straight away. Definitely recommend Experian as it gives tips as to how to improve.

Yes. I also advise using a mortgage broker. You don’t pay fees for the better ones-the mortgage providers pay them a fee. I have just used an excellent one to get a mortgage and really rate them.

As a suggestion if you don’t want to use a broker, mine told me they refer to NatWest as ‘natyes’ in terms of mortgages so probably a good place to start!

What is a mortgage broker? I'm going to be buying my council flat so it will be a bit more complicated.
Do I need one?

Accept any credit you are given

Don't do this.

Use your credit card for main spends and pay it off in full.

Don't go wild taking out loads of credit- it Is a negative factor to have too many lines of credit open.

Thanks for confirming this. This is what I have always thought so was reluctant before.

I'm definetely not someone that would ever go wild. The whole credit thing terrifies me to be honest