Keep the faith when you have debt

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Hello, i'm posting this for others who have debt issues and see no light at the end of the tunnel.

In 2010 i was heavily in debt, i hardly had anything left after being paid, i decided to do something about it and signed upto a debt mangement plan, my credit score was shocking.

Anyway in 2015 i finally paid it all off, got myself a credit card and decided to try and improve my credit score, i now as i am a bit wiser only bought something if i had the cash to pay it off, i now not just put it on the credit card and worry about it later.

I have always rented and decided to try and buy my own place with help to buy, i decided to check my credit score on experian and i was actually shocked, i thought is that me.

All my defaults (because of the debt mangement plan intial set-up) have came off an no longer show, and my credit score is 999 out of 999.

This is just a support post to say no matter how bad you think things are a bit of re-structure, paying of debts and re-building your credit score can be done so never lose hope.

Comments

  • another_casualty
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    Great stuff. However, unless you pay the credit card in full each month or use rarely I would advise you to dispose of it .
  • sourcrates
    sourcrates Posts: 28,878 Ambassador
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    edited 19 March 2018 at 3:37PM
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    Just as a pointer to others, your credit score is pretty much meaningless, it is credit history that counts with lenders.

    The numbers are randomly generated, much the same as the lotto numbers, it is based on how the credit reference agencies view you, and as they do not offer credit, the number means nothing.

    The main function of the credit score, is to try to sell you products and services from the CRA`s, such as credit score improvement products, it has nothing to do with your ability to gain credit, every lender has different criteria for lending, someone with a 999 credit score may apply for a loan to a particular lender, and be turned down, because they did not meet the lenders own criteria.

    Martin Lewis has a very interesting post on the credit rating thread entitled, "The truth about your credit score", makes good reading.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
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