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what affects your credit rating?

Other than financial ratios

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Hi All,

Many clients are having customers/suppliers carrying out credit checks on them on a regular basis. I was wondering if anyone has any pointers to help a client ensure their credit is as high as possible. The financials are the most obvious one but what else impacts your score either in a positive or negative way? If you are a sole Director for example will it improve the score if a further Director is appointed or if there are already several Directors, what does a new Director or resignation do to your score? Being connected with other companies is another I assume.

Experian in particular currently seem to be scoring very low in comparison to someone like CreditSafe


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By SXGuy
24th Mar 2019 10:29

Scoring is an in house job and each reference agency will give you a different score depending on their criteria.

But the basics would stand, no late payments, being on the voting register, having some credit like a mortgage or car finance.

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28th Mar 2019 10:27

I have joined most of the credit agencies (free) and although my circumstances don't change, every month, when I check (they send an e-mail that it has been updated) it changes, either up or down. The only thing I can put it down to is my spending habits. Some months I will spend more (holidays etc.) than others. Absolutely meaningless.

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28th Mar 2019 13:54

Some finance housese are not lending to Company's with overdrawn capital accounts

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01st Apr 2019 14:56

Credit reference agencies only go so far. My credit management teams look at
- Does the customer pay on time?
- Not everyone does pay on time (or can pay on time). So if we call and they promise to pay on Thursday, that’s fine, as long as the actually do pay on Thursday. No payment = a black mark
- Does the customer keep in touch? A customer built considerable trust by calling us to say he had a problem, proposing a payment plan and then sticking to it.

Some of our best customers have low ratings from credit agencies but we give them substantial credit because their behaviour is good.

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