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?

The score is utterly irrelevant as every company has their own method of 'scoring'

What matters is the data contained in your credit file. Is there any accounts you don't recognise listed on there? Don't go wild accepting and using credit that could ultimately go against you. Use the card for a couple of months to do your regular grocery shop or fill your car up and then pay it back in full when you get the monthly statment. They want to see you can manage your money

I thought I'd set up a direct debit to pay it off at the beginning of every month but it didn't go out this month which has freaked me out again.

This doesn't matter so much as it's a 0% account but don't want to screw over my credit score anymore.

I had the same experience. My credit score was abnormally amazing and then it wasn’t. I used Experian to look through what loans were taken out in my name. My mum had taken out a 5k loan which she stopped paying back!!

I have a couple of card that I use to transfer balances when I can for 0% interest. Every so often they offer to increase. I only make £12 per hour.

I think there's something like electoral register and keeping a bank account for a long time

This is my fear. I have some dodgy family members. I want to trust them but since my friend said this I can't let it go that maybe she's right.

How did your mum manage to do it in your name?

You dont need to spend all of it. But they like to see you using it well. You could put petrol every month and make sure you pay it off. If you're wanting to get mortage soon be careful taking out credit. Maybe speak to mortgage advisor

I was in the same situation as you a few months ago- no mortgage and no credit card, always paid bills on time, good amount of savings, but credit score was dire! I took out a credit card and was told that to improve credit, I should only spend about 10% of the limit at any given time. So I've done that, always paid the credit card off within days, and my score has improved a lot.

Where can I get a mortgage advisor cheaply?

This. Opening too many new credit accounts negatively impacts your score. Just use existing credit for general purchases you normally would. I use my credit card for my monthly petrol and pay it back in full each month for example.

You should access your credit file if you are wanting a mortgage, so I’d recommend you sign up to Experian or similar. You can usually get a free trial.
I had an incident where a lender had made an error and it showed as a default on my credit file. Had I not been a checker of my score and noticed the drop I wouldn’t have known until I came to remortgage. I managed to get this wiped from my file by the lender as it was their error and that sent my score back up, but did take a month or two for it to be corrected.

I will send you a pm with who i used-we might both get some money from it! 🤣

This really worries me. I will look now

My son got his mortgage in 2022 and has never had a credit card, and still doesn’t have one. He had rented for several years and paid utilities reliably, so ignore comments on needing £14k available credit although it’s not a bad idea, provided you set it up so that it is paid in full monthly.
for brokers I would recommend London and Country, l’ve used them and both my kids used them as well.
It’s worth joining Martin Lewis’s MSE credit club and monitor your score every month.

Thanks for this. This is what I thought. I've saved a 20% deposit so thought this would be fine.

Can you explain what a mortgage broker actually does? I'm clueless :-(
Just assumed I would need a surveyor to check everything over?

Mortgage lenders don't use your credit 'score' from Experian to make decisions. Each will have its own criteria they'll measure you against, including how many recent credit applications, repayment history, no. of defaults if any, current salary. The number itself is really just there as a summary for you. If you search for a lender and mortgage criteria, you'll often find the intermediary page for brokers which will explain their specific criteria.

A mortgage broker will look at your financial history and current circumstances, and find the mortgage lenders you're most likely to be accepted with. The mortgage lender will pay them a fee, so many are free to use for you. They often handle the paperwork of the application as well.

OK thanks. I was just looking at high street banks and building societies mostly so this is good to know.

No worries! From what you've said, it sounds like you won't have any trouble getting a mortgage with a mainstream lender, but speaking with a mortgage advisor may put you at ease. Best of luck with your flat! 😀

You don’t need to sign up every year. You just need to sign up each time you move house.

Have you ever voted in an election (e.g. general election or local council/mayor elections)? If you have, that means you were on the electoral roll, as you have to be on it to vote.

This link gives you more info: https://www.gov.uk/electoral-register

When I was 18 she asked if she could make an account with Very using my details so that she could get 20% off as it was for new members only. I said yes and though nothing of it. It wasn’t a Very account it was a Very credit card.

I realised when I was 22. It caused a huge rift. I’m very very very fortunate that my uncle found out and paid it off, so my mum owed him the money instead.

This is what I thought. I signed up years ago when I was 19 so assumed I was signed up. They then sent me letter a couple of years later so I signed up again and haven't heard anything again since.
I've signed up again online just now just in case. You know what the council are like...

If you have been a victim of fraud, it will show on your credit report as a CIFAS warning. You'd know about it. Experian for a free trial or clearscore, who use experian data but is free.

Check you recognise everything and query anything you don't.

Ultimately, lenders don't look at credit scores. They look at how you pay, how you run credit, your pattern of borrowing. Missed payments are a red flag, as are late or returned direct debits on your bank account - poor money management or signs of financial struggle.
Running credit to the limits and making minimum payments is a risk - looks like you're living outwith your means.

Taking multiple short term loans, or multiple borrowing/new accounts doesn't look good either - points again to either poor money management or signs of struggle.

In very basic terms, lenders are looking to see that their investment in you is a safe one. Someone who runs their finances responsibly, paying things on time and borrowing within a reasonable limit is a safer bet than someone who consistently misses payments. Someone who has credit cards maxed, opens new credit accounts every other month and runs those balances up too, could fall outwith responsible lending criteria that institutions must adhere to.

There are so many myths and misinformation around credit files, it's difficult to know where to start.

Look at London and country - they're excellent brokers. I've used them more than once and they're always recommended on here. Good luck with buying your home.

F**king hell. This makes me thankful we were estranged from my mum for a while since we became adults.

My mums crazy but has never tried that... Partly because I think she couldn't actually figure it out.
Thank God for your uncle.

Do you talk to your mum now?

Loads of totally wrong replies on here. Why oh why do people ask legal or technical questions on AIBU ?

Credit scores are mickey mouse made up numbers by these "credit scoring companies" to sell you credit products. Banks do NOT see these credit scores. A credit "scoring" factors in lots of stuff added onto your credit HISTORY. See there is a difference !
You should check your credit history for the correct amount of loans, credit agreements etc. Are they YOURS ? Yes ? Obviously no identity theft 🤣

All paid on time, no missed payments - good.
How much line of credit do you have (credit card available credit ) - are you using more than 30% - not good
Had lots of house moves in 3 years - not good
held a bank account for a while - good
plus on electoral register - good
No fraud links - good
Lots of "hard" searches recently - not good
Income ( credit agencies dont have this so how can they fully score ?? )
Employment length - ditto above
What you are buying ? Is credit secured or not secured
Etc etc

As you can see SO MUCH MORE goes into credit scoring for an actual application for a credit product than some silly made up score

Yes! Not regularly but we are on good terms. Talk every 2 weeks and see her 3 times a year. Certainly don’t talk about money.

I thought I would never talk to her again. I blamed her for my life being shite. As time passed I realised we shared the same trauma from losing my dad and neither of us knew how to process it. So while I still feel animosity for how badly she has treated me in the past I have some understanding over her actions which have lead to forgiveness.

I was in a similar position to you OP, except I didn't even have car finance history. Lots of older people (as in 40+) told me that I would have to get a credit card and pay it off, but both my mortgage advisor and mortgage provider assured me that it just wasn't necessary as I otherwise had a consistent history of paying bills/DD, no debt, earnt a good wage etc. I think in the days where direct debit for bills was less common it carried more weight, but it doesn't seem to much now. A mortgage advisor will help with this! Worth popping into any local fb pages you might be part of and asking for recommendations of a local one.