Taking SIMO contract to improve credit score

11 replies
Found 11th Feb
Hello and thanks in advance,

I have a fair credit score and I am looking for ways to improve it. Noddle suggests taking a mobile phone contract as the easiest way to improve my credit score. I appreciate some advice on these questions:

1. Does taking a mobile contract really improve credit score (needless to say that I will pay on time)?

2. I am not after a handset. So, does taking a SIMO contract help and should it be the 12 month contract or 30-day one?

3. What mobile providers report to credit agencies?

Thanks again and I appreciate your help.

11 Comments

I took one out thinking that same, and my credit score dropped 54 points the following month!!! So, maybe, maybe not.

Original Poster

artnada

I took one out thinking that same, and my credit score dropped 54 points … I took one out thinking that same, and my credit score dropped 54 points the following month!!! So, maybe, maybe not.



Hi artnada, thank you very much for your reply; very interesting. I assume your credit score will drop since you have applied for credit, but did it improve in the long run after taking the contract and does it show on your credit report (also appreciate if you can tell what provider you took as some providers don't report to credit agencies and was it 12 months or 30 days rolling)​

Get a vanquis or starter credit card from barclaycard aqua etc

It does improve credit, but takes time. 6 months at least. Payments must be on time.
Vanquis and similar credit cards helps , but hits with charges really hard 35-55% interest if balance not paid in full.

I've done this, Three and Bt sims, paying £8.50 for 2 12 month sims. So I can only recommend those.

My friend got a catalogue and store card and they helped her credit good luck

yeah, a phone contract and a credit card which are both maintained and paid in full on each statement will give you a good start within about 6 months. the interest rate on the credit card doesnt matter provided you pay it off each month.

good luck

gargamel

1. Does taking a mobile contract really improve credit score (needless to … 1. Does taking a mobile contract really improve credit score (needless to say that I will pay on time)?


Over a period, likely 6months+, and with no other factors, generally: yes.
gargamel

2. I am not after a handset. So, does taking a SIMO contract help and … 2. I am not after a handset. So, does taking a SIMO contract help and should it be the 12 month contract or 30-day one?


Either. To maximise any positive impact on credit rating, maintain the contract for at least 6 months.
gargamel

3. What mobile providers report to credit agencies?


Likely: all, and certainly all that ask for your consent to a credit check when you apply. It would not be in any credit provider's interest not to do so, as reporting entitles the provider to access reciprocal information.

gargamel

Hi artnada, thank you very much for your reply; very interesting. I … Hi artnada, thank you very much for your reply; very interesting. I assume your credit score will drop since you have applied for credit, but did it improve in the long run after taking the contract and does it show on your credit report (also appreciate if you can tell what provider you took as some providers don't report to credit agencies and was it 12 months or 30 days rolling)​


It has gone back up since, over a period of months. I assume that is the combination of credit cards and sim contracts being marked as "up to date".

To improve my credit I also applied for Aqua and eVanquis credit cards (nearly 18 months ago). The eVanquis card had an initial limit of £300 and the Aqua £100. Over time, I used it, paid it off, sometimes I would leave a balance on there, (they make a bit of money then), then pay it off.

2 months ago, I asked to increase my limit, because a low limit is poor for your score. Aqua increased to £400 and eVanquis increased to £1000. Last week Aqua also increased to £1000 out of the blue.

Remember though, having a good limit on your cards isn't everything. If e.g. you have £1000 limit and you spend upto £700, that means you're using 70% of available credit on your card, and lenders will see that as an alert. It can also knock your score.

The crazy world of "computer says no!" is real. Bring back the bank manager who can sit in front of people and make a real decision, I say

Repairing your credit is a long, arduous and frankly, IMHO, an unfair process. It has taken me nearly 2 years and still it is relatively "low". It's better, but still not very good.

Edited by: "artnada" 12th Feb

Can I just mention that Noddle promote products which pay them a referral fee... Free credit scores have to pay somehow

artnada

The crazy world of "computer says no!" is real. Bring back the bank … The crazy world of "computer says no!" is real. Bring back the bank manager who can sit in front of people and make a real decision, I say



Dunno - I applied for an overdraft once with Barclays online and got instantly refused.

I wasn't exactly wealthy, but was living with my mum and dad, so had very few commitments - I had owned a credit card when I was a student, but had shredded it afterwards, so all of my cash was mine to spend. I arranged a meeting to discuss this and the woman took one look at my file and said "oh it's him..."

Turns out that a few years before that I had inquired about, but not taken a loan to buy a car. The guy who I had spoken to, had unknown to me made a not on my file that I was untrustworthy and as long as this mark remained I would never be able to get any more products with Barclays. He was apparently famous in the area for doing that to hundreds of people just because he didn't like the look of them.

Made me feel a bit better about reclaiming the unauthorised overdraft charges they used to impose on a monthly basis
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