credit rating

[oxymoron]

My husband and I both have a credit card with the same company,his name is the one the bill gets sent to but I have been told without a card in my name I would not have a very high credit rating I can`t see the need to have loads of cards when we manage fine with one. What is the legal reason for acquiring a high credit rating if I don`t intend to borrow hundreds of pounds !!

[dasherman]

There is no legal reason why you need a good credit rating,but a bad rating could affect you ability to to get credit in the future. If you are in control of your borrowings and never miss a payment then I shouldn't worry.

[oxymoron]

Thanks dasherman, your answer is appreciated.

[ummmm]

If you have no credit history then lenders might not want to lend to you.

Have you a mobile phone contract?

[Pigletion]

It's mainly just to get you in the system should you ever need a loan or a mortgage. My cousin had problems getting a mortgage as she'd never borrowed any money or had a credit card before, she didn't even have a student loan. Therefore banks turned her down as she didn't have a credit rating in the system. The decisions for mortgages etc. are usually based on an automated score card system, so if you're not in the system you may be turned down.

This may seem counterintuitive, but it's the way it is. I purposely got a credit card when I was 18 for this reason and made sure I built a good credit score (though you can see how it leads some people into trouble).

As Dasherman said, if you're happy then don't worry.

[oxymoron]

Thanks ummmm & pigletion. My mobile phone is pay as you go and the mortgage is paid so maybe I will stay as I am.

[bushbaby_de]

Is your name actually on the mortgage? If so those payments will be on your credit rating. Also if you have any storecards or catalogue accounts those contribute too. The credit card will only be going on your husband's credit rating as only one person can hold a credit card, and the other person is just an additional cardholder, and the main cardholder is responsible for their spending on the card. If you have none of these things I would suggest getting and maintaining some line of credit, because when the mortgage comes up for renewal if you want your salary and credit rating to count, you need something to show them!

[oxymoron]

Hi bushbaby I`m retired and the house is paid for so no mortgage will be needed .I order from a catalogue but pay in full when the bill comes in and don`t plan on borrowing or taking out a loan, so I guess being an additional card holder will be enough especially as hubby doesn`t have any plans to leave me !!!

[bushbaby_de]

If you're not intending seeking credit then the lack of a credit rating won't affect you at all. I wouldn't worry about it.