Why is my credit score so low?

Q I have a perfect credit record. I'm 65, always pay my bills on time, and have no overdue payments - yet each time I apply for credit I'm told I have a low score. How can that be?

MH

A There could be several reasons. Are you on the electoral register? This is one of the first items providers investigate when deciding whether to provide credit to applicants, because people who have registered to vote are more traceable than those who haven't. Anyone lending you money wants to know that it can find you should you decide to abscond without meeting your repayment responsibilities.

Are you a homeowner? This also counts big time on credit scoring. Renters are seen as having fewer ties to a specific place and are thus considered a higher credit risk. This may seem very unfair to tenants but nobody has an automatic right to credit and those providing the money are entitled to minimise their risk.

If you've always paid your bills on time and never missed a payment for anything, I can imagine why most credit card providers will give you a wide berth - it's because they're unlikely to make any money out of you. Credit card issuers rely on interest payments to make money, and that means customers who don't pay off their bills in full each month are far more attractive to them than those who do.

I can't be sure - and I certainly haven't come across it before - but there may also be a bit of an age bias here. Credit is an expensive product for providers to arrange and they benefit most from holding customers long term. Some providers might perceive your age as a barrier to earning much money from you, especially with your clean record of timely bill payment.