Credit Rating: How it works and How to improve it discussion area

7 steps to raise your credit score

Watch those credit card balances.
Eliminate credit card balances.
Leave old debt on your report.
Use your calendar.
Pay bills on time.
Don't hint at risk.
Don't obsess.

Hi people,

I would like to know the best (and safest) way to boost my chances of credit. I have done the free Experion check and got 999/999 but with my chances of credit being v.low, due to no history I think.

I have only ever had one loan from the bank which I paid off early. I dont have any credit cards, only debit cards with an overdraft of £250, which I have only gone into accidently once, and for less than 24hrs.
I did have a pre paid Mastercard a few years ago with... Pay Plus? Credit Plus? Something like that, which I only used a couple of times before it drained my pre loaded funds for non usage and then when it expired I just cut it up and forgot about it because I didn't want to pay the £10 cancellation fee. Would this be working against me, or does it not matter as it was pre paid card? Is there a way for me to check this status?

I am currently renovating a house and living off savings, so not claiming any benefits, or earning anything to contribute tax. Living at my mums very cheaply. My only outgoings are; mobile phone contract, car insurance, car tax, all paid monthly via direct debit. I have never failed to pay any bills.

I am 36 now and have always been risk averse when it comes to credit / debt, and prefer to save for things I want or need. If I can't afford it I can't have it attitude. I even did 3 years in Uni why living at home and managed to survive off the grants alone, no student loans, no student debt. Tight !!!! lol.

However, I have a plan to setup a PLC and would like to obtain a loan in the future to help me get the business off the ground but looking at my Experion report have a feeling I have work to do first. I have seen there are .gov new business loans available but at 6% they are not that appealing when there are offers out there of 0% for 4 years.

I would appreciate any help on my best way forward in improving my chances of credit and how to go about it. I have seen the special credit build cards on here but am unsure which to go for. Do I have to actually use the cards or can I just apply and then cut them up and not use them? If I have to use them can I pay them off early or do I have to wait to go into the overdraft? What size overdraft do I need to boost my history and not affect my score? If I go into the overdraft, how long do I get before I get stung?

So many questions... so little space :eek:

Any and all help is appreciated.

Thank you.

I've opened 2 energy accounts with nPower and have subsequently discovered that they have registered 2 new credit agreements with me on the Experian Credit Reference database both with zero balances. I cannot see that any authorisation to open or register a new credit account in their T&C's. Any new credit account has a detrimental impact on an individual's credit rating score, so by registering 2 new accounts that counts as a negative factor. In my case I've been downgraded from 'Excellent' to 'Fair' which has prevented me from getting good deals elsewhere. There are no other factors here, so it has to be nPower's actions. The nPower new customer agreement does mention checking credit references, but doesn't mention taking out a new credit agreement. I think this is unfair and misleading. Has anyone else had a similar experience?