Emma’s journey: The start of my LOQBOX journey
As we’ve just launched LOQBOX, I thought what better way to show you how it works than to join you on this journey myself! I’ll be writing blogs every month about my LOQBOX experience and will include regular snapshots of my credit score so that we can track its performance and progress together!
The first thing I needed to do was find out my credit score, which I did online through free credit-scoring companies such as Clear Score, Noddle and Credit Club by moneysavingexpert.com. In order to get your credit score, you’ll need to fill out some personal details such as date of birth, who you bank with and your address over the last 3 years. Some sites will also ask you for your bank details even if they are free, but will clearly state that you won’t be charged. I tried Noddle first, but it turns out they didn’t have enough credit information on me to generate a report:
I then turned to Clear Score and repeated this process and found out that my credit score was 373, which was worse than I thought it would be!
What does a credit score of 373 actually mean?
It turns out that a score of 373 is classified as poor and that I’m not only considered to be high risk by lenders, but am also likely to be rejected for most credit cards (or pay extremely high interest rates), mortgages and loans!
I wondered why my credit score was so poor- I had never taken out a loan or had a credit card before. Was it because I had lived with other people in the past few years at University? Or because I had moved several times within this period?
After speaking with the Founders of LOQBOX, Tom and Gregor, I quickly learnt that unless you are financially linked (through a joint bank account for example), living with other people actually has no impact on your credit score. I found this especially interesting as many students at University have joint bank accounts to pay for things like rent and utility bills and I wondered if they would do the same if they knew it could be affecting their credit scores.
They also explained how moving often can impact your score. Lenders want to see stability, so if you’ve moved several times in the past few years- which University students and those fresh out of University typically do- it’s highly likely that this can impact your score in a negative way. In addition to this, if you are not on the electoral roll – which I am not – then this can also be affecting your score.
Finally, they explained that because I’ve never had a credit card, I simply don’t have any credit and so cannot prove to lenders that I can be trusted to make payments on time –it’s also probably why Noddle couldn’t even generate a credit report for me!
It was all starting to make sense and I was already planning my next steps to begin building my credit history with LOQBOX. Check out my next blog where i’ll walk you through the LOQBOX sign up process!