Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • carebear95
    • By carebear95 16th Oct 16, 3:23 PM
    • 32Posts
    • 7Thanks
    carebear95
    what else can I do to improve my credit rating?
    • #1
    • 16th Oct 16, 3:23 PM
    what else can I do to improve my credit rating? 16th Oct 16 at 3:23 PM
    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?
    Survey Earnings April 2016 £5/£40
    Comping since April 2016 0 wins
Page 1
    • robber2
    • By robber2 16th Oct 16, 3:36 PM
    • 131 Posts
    • 85 Thanks
    robber2
    • #2
    • 16th Oct 16, 3:36 PM
    • #2
    • 16th Oct 16, 3:36 PM
    experian and noodle don't offer mortgages so I wont worry too much about their made up scores.

    It may help your future mortage application if you were able to get a mainstream credit card and dump the aqua card. If you havn't used the catalogue account ask if you really need it? If not I'd shut it down.

    good luck
    • carebear95
    • By carebear95 16th Oct 16, 4:31 PM
    • 32 Posts
    • 7 Thanks
    carebear95
    • #3
    • 16th Oct 16, 4:31 PM
    • #3
    • 16th Oct 16, 4:31 PM
    Yes, I dont really have any use for the cataloge account at the moment so I ll look into closing it If I was to try to swap to mainstream card, would i be best waiting a bit longer than 6 months with this card or is it worth giving it a go now?
    Survey Earnings April 2016 £5/£40
    Comping since April 2016 0 wins
    • Thrugelmir
    • By Thrugelmir 16th Oct 16, 4:58 PM
    • 51,259 Posts
    • 43,049 Thanks
    Thrugelmir
    • #4
    • 16th Oct 16, 4:58 PM
    • #4
    • 16th Oct 16, 4:58 PM
    Have you opened a Help to Buy ISA?
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
    • GingerBob
    • By GingerBob 16th Oct 16, 5:09 PM
    • 3,037 Posts
    • 1,284 Thanks
    GingerBob
    • #5
    • 16th Oct 16, 5:09 PM
    • #5
    • 16th Oct 16, 5:09 PM
    Have you opened a Help to Buy ISA?
    Originally posted by Thrugelmir

    I assume this wouldn't be reported to the CRAs, so no effect on score?
    • carebear95
    • By carebear95 16th Oct 16, 5:17 PM
    • 32 Posts
    • 7 Thanks
    carebear95
    • #6
    • 16th Oct 16, 5:17 PM
    • #6
    • 16th Oct 16, 5:17 PM
    Yes I have a help to buy isa, I already have my half of our deposit sat in the bank so we re just waiting for my fianc! to get his saved up over the next 18 months,I m just concerned about having the best credit record possible so that we ve got the best chance at being approved and having the best interest rate possible.
    Survey Earnings April 2016 £5/£40
    Comping since April 2016 0 wins
    • Maximum Saving
    • By Maximum Saving 16th Oct 16, 5:19 PM
    • 151 Posts
    • 265 Thanks
    Maximum Saving
    • #7
    • 16th Oct 16, 5:19 PM
    • #7
    • 16th Oct 16, 5:19 PM
    I suggest that you change your credit card with Aqua to a mainstream one. Also you could close the catalogue account which you haven't used in the last six months. There are now some Help to Buy ISAs which would help you to save a deposit for your future home. I had unused credit cards so I closed them down. I just keep one credit card for travelling. Good luck with getting a mortgage when you are ready for one.
    • Thrugelmir
    • By Thrugelmir 16th Oct 16, 5:21 PM
    • 51,259 Posts
    • 43,049 Thanks
    Thrugelmir
    • #8
    • 16th Oct 16, 5:21 PM
    • #8
    • 16th Oct 16, 5:21 PM
    Yes I have a help to buy isa, I already have my half of our deposit sat in the bank so we re just waiting for my fianc! to get his saved up over the next 18 months,I m just concerned about having the best credit record possible so that we ve got the best chance at being approved and having the best interest rate possible.
    Originally posted by carebear95
    From a lenders perspective the fact you have the discipline to save regularly is extremely important. Borrowing money and repaying it only says so much. Forget about your credit report it's perfectly adequate as it is.
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
    • carebear95
    • By carebear95 16th Oct 16, 5:47 PM
    • 32 Posts
    • 7 Thanks
    carebear95
    • #9
    • 16th Oct 16, 5:47 PM
    • #9
    • 16th Oct 16, 5:47 PM
    I ll definetly give them a call to close the catalogue account when I next get the chance.

    I ve had a help to buy isa for a few months, I ve been very careful saving the small amount of inheritance I got from my dad and grandparents passing which is just enough for the deposit and a small wedding. I don't ever spend all my wages in a month so hopefully I also look responsible from that view point as the left overs stay in other savings accounts.

    I did apply for a credit card just under a year ago with my bank and was rejected but hopefully they d reconsider me as my incomes improved since then.
    Survey Earnings April 2016 £5/£40
    Comping since April 2016 0 wins
    • Smodlet
    • By Smodlet 16th Oct 16, 5:57 PM
    • 1,793 Posts
    • 2,983 Thanks
    Smodlet
    Hi. Have you tried the credit card eligibility calculators on here to see what your chances are of acceptance with a mainstream card?

    As all the above, show lenders you can save on a regular basis. Try to put your head in their space for a moment: If you can save a decent amount every month, you show you can pay off a debt on a regular basis, yes?

    I hope your partner has the same mature attitude towards money, especially debt, as you seem to do. If so, I think it only a matter of time before you make your dreams become real.

    Best of luck and HTH.
    What is this life, if, sweet wordsmith, we have no time to take the pith?

    Every stew starts with the first onion.

    I took it upon myself to investigate a trifle; it had custard, jelly, soggy sponge things...
    • carebear95
    • By carebear95 16th Oct 16, 6:24 PM
    • 32 Posts
    • 7 Thanks
    carebear95
    Hi, yes I ve had a look recently and it's given me between 60 and 80% chance of acceptance so I guess that's a risk worth going for.

    I try to make sure I save a reasonable amount of my income and have never spent all my wages in a month so hopefully that works in my favour.
    He does indeed have a similar attitude
    Survey Earnings April 2016 £5/£40
    Comping since April 2016 0 wins
    • JGUK
    • By JGUK 16th Oct 16, 6:55 PM
    • 91 Posts
    • 14 Thanks
    JGUK
    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
    • zx81
    • By zx81 16th Oct 16, 8:18 PM
    • 9,358 Posts
    • 9,194 Thanks
    zx81
    That's correct.
    • carebear95
    • By carebear95 16th Oct 16, 8:39 PM
    • 32 Posts
    • 7 Thanks
    carebear95
    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.
    Survey Earnings April 2016 £5/£40
    Comping since April 2016 0 wins
  • jamesd
    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.
    • zx81
    • By zx81 17th Oct 16, 7:52 AM
    • 9,358 Posts
    • 9,194 Thanks
    zx81
    A smallish personal loan would probably be a good move also.
    Originally posted by jamesd
    Definitely don't do that. There is no need at all to pay for a good credit history.
  • jamesd
    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
    • By carebear95 17th Oct 16, 7:45 PM
    • 32 Posts
    • 7 Thanks
    carebear95
    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.
    Survey Earnings April 2016 £5/£40
    Comping since April 2016 0 wins
    • zx81
    • By zx81 17th Oct 16, 7:53 PM
    • 9,358 Posts
    • 9,194 Thanks
    zx81
    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
    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.
    Originally posted by carebear95
    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.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,724Posts Today

8,460Users online

Martin's Twitter