what else can I do to improve my credit rating?

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  • JGUK
    JGUK Posts: 222 Forumite
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    Am I right in thinking though that other lenders can't actually see the institutions that you have facilities with, just the products that you have ?

    Or is that incorrect ?
    Thanks
    JG
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    That's correct.
  • carebear95
    carebear95 Posts: 32 Forumite
    Thank you all for your advice, despite my sceptism I've been approved for a card with a £1000 limit with my bank with a much better rate than the aqua one, I shall be paying off my aqua card and getting that closed on my next day off. It's our intention that we look at getting a mortgage with our bank which we have all of our accounts with, although i know loyalty doesn't always pay so we will consider looking else where.
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  • jamesd
    jamesd Posts: 26,103 Forumite
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    A smallish personal loan would probably be a good move also. You can pay most of it of as soon as you get it so that all it does is show your on time payments with minimal interest cost.

    If you get the loan, next step might be another mainstream credit card. Idea here is to get two mainstream credit cards that you would keep for a long time.

    After that, do nothing else except showing perfect on time payment record while using the cards for normal spending but not keeping a balance other than any in a cheap deal.

    Be particularly cautious about closing the accounts that you have had open for longest because only time can get other accounts to the same age.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    jamesd wrote: »
    A smallish personal loan would probably be a good move also.

    Definitely don't do that. There is no need at all to pay for a good credit history.
  • jamesd
    jamesd Posts: 26,103 Forumite
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    A personal loan with £10 still outstanding is cheap and useful. That's one thing I did myself before going for a mortgage a few years later, back when I had little credit history. The benefit of the trivial amount of interest can be very non-trivial in later interest rates.

    Different types of credit do affect scoring so it's a case of deciding whether the trivial interest cost is worth it.

    Not that there is necessarily any net cost. These days it can be relatively easy to get a personal loan that costs less than what you can make from say P2P. Though harder for those who don't have a good credit record yet.
  • carebear95
    carebear95 Posts: 32 Forumite
    I don't feel too comfortable getting a loan when i've nothing i need it for and i dont see me getting an interest free loan. Yes i want a better rating but not if it's going to cost me quite a bit of money in the meantime.
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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    OP - ignore any suggestion of getting a loan. Responsible use of a card is the best way to build a credit history.

    Keep the old one as well as the new, use regularly and clear in full each month.
  • jamesd
    jamesd Posts: 26,103 Forumite
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    carebear95 wrote: »
    I don't feel too comfortable getting a loan when i've nothing i need it for and i dont see me getting an interest free loan. Yes i want a better rating but not if it's going to cost me quite a bit of money in the meantime.
    It doesn't cost a lot of money, under a Pound over three years is the sort of cost on £10 at normal interest rates and it's easy to save that much on a better deal later.

    But it's also not essential so if you're not comfortable, don't do it, even though I did myself.
  • TheShape
    TheShape Posts: 1,779 Forumite
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    carebear95 wrote: »
    My current credit score across experian and noodle is in the fair range;
    I've been on the electoral roll with no gaps since 18.
    I have had a card with aqua for 6 months, used about 1/3 of my limit each month and paid off in full each month.
    I have had utility bills in my name and never missed a payment for the past two years including phone contracts.
    My average credit account age is 30 months.
    The only thing I can think of that might be causing an issue, is that i've had a catalogue account with a limit of £600 that i've not used in 6 months.
    With the aim of getting a mortgage in about 2 years with my fiance, is there anything else i should be doing to bump up my credit rating or is it a case of continue to be patient and keep using credit responsibly?

    Couple of questions just to cover all the bases:

    How long have you lived at your current address?
    Do you have an overdraft on a current account(s), what is/are the limit(s), ever gone into an unauthorised overdraft?
    Do you have any joint accounts with/a financial association with your fiance?

    How is your fiancee's credit rating/history? That will be as important as yours when you make an application.
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