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  • FIRST POST
    • TempUserName123
    • By TempUserName123 9th Mar 17, 12:57 PM
    • 33Posts
    • 8Thanks
    TempUserName123
    How to Start Improving Terrible Credit Score?
    • #1
    • 9th Mar 17, 12:57 PM
    How to Start Improving Terrible Credit Score? 9th Mar 17 at 12:57 PM
    Hi,

    I have a client that has quite a bad credit record. 17 defaults about 3-4 years ago totalling about £4,000 in total. She has recently started clearing some of them, now there are 13 outstanding defaults with a value of around £3,500. We are in the process of clearing these defaults, and trying to organise settlement discounts where possible. In the next few months, all defaults should be settled.

    The most recent default is 6th Dec 14, so it is my understanding that all defaults will not be seen by lenders after 6th Dec 2020.

    The long term objective is for my client to be able to get a mortgage, either for a BTL or a standard residential mortgage. The deposit is not a problem and can finance anything up to £20,000. She is looking for a first time house for around £50,000. Therefore, even a 60% mortgage would suffice. Her salary is £23k p.a. gross.

    We are looking for a strategy that would help my client get on the property ladder sooner rather than later. Obviously, this means rebuilding her credit file, but what we are finding is that no lender (understandably) wants to go anywhere near her. This is creating a problem in that we can't even get any form of credit to rebuild her file. Any applications that are made obviously go against her as well.

    The question is how do we proceed from this point. In my mind, first things first, all defaults should be cleared which will take a month or so. But once this is done, I still have a feeling that lenders will be extremely reluctant in opening a line of credit.

    I guess the question therefore, is what accounts should be opened and in what order to grow her profile? I believe she will have to start at the very bottom with the the very expensive credit cards. She understands this, and also understands there will be "credit costs" associated in building her credit file, which is fine.

    Specifically, can anyone recommend example lenders or associations that can be used for people with terrible credit ratings? Essentially we just need her to get back on the credit ladder in some shape or form,

    Thanks in advance
Page 1
    • zx81
    • By zx81 9th Mar 17, 1:03 PM
    • 14,379 Posts
    • 15,159 Thanks
    zx81
    • #2
    • 9th Mar 17, 1:03 PM
    • #2
    • 9th Mar 17, 1:03 PM
    I guess the question therefore, is what accounts should be opened and in what order to grow her profile? I believe she will have to start at the very bottom with the the very expensive credit cards. She understands this, and also understands there will be "credit costs" associated in building her credit file, which is fine.
    Originally posted by QuickRebates
    No costs needed.

    She need to try one of the sub prime cards - if accepted, use regularly and clear in full each month.

    If rejected, leave it three months or so before retrying.

    Time will do the rest. However, it's a long term game for her.

    Refer to your previous very similar thread for more info - http://forums.moneysavingexpert.com/showthread.php?t=5595814
    • SeduLOUs
    • By SeduLOUs 9th Mar 17, 1:05 PM
    • 2,093 Posts
    • 2,477 Thanks
    SeduLOUs
    • #3
    • 9th Mar 17, 1:05 PM
    • #3
    • 9th Mar 17, 1:05 PM
    What do you mean by 'client'?

    There don't need to be 'credit costs' to improve the file. Even the shocking APRs on the cards designed for bad credit won't charge a penny as long as you pay the balance in full.

    Try the eligibility checker. If the likes of Capital One, Aqua, Vanquis etc wont touch her then time is likely to be the only healer. Come back and run the checker again every few months as the balances clear and the problems get older.

    If the file is that bad then getting one of the prepaid cards that effectively charge you for putting a green tick on the file are unlikely to make any difference whatsoever.
    • StopIt
    • By StopIt 9th Mar 17, 2:43 PM
    • 1,449 Posts
    • 1,239 Thanks
    StopIt
    • #4
    • 9th Mar 17, 2:43 PM
    • #4
    • 9th Mar 17, 2:43 PM
    Does your "client" know you're helping her by using MSE instead of you know, just directing her here instead?


    Please tell me you're not charging for this service?


    Direct your "Client" to Stepchange, frankly.
    • TempUserName123
    • By TempUserName123 9th Mar 17, 3:24 PM
    • 33 Posts
    • 8 Thanks
    TempUserName123
    • #5
    • 9th Mar 17, 3:24 PM
    • #5
    • 9th Mar 17, 3:24 PM
    Thanks for the assistance and suggestions. My "client" is a family member, no fees are being invoiced!!! This is more of a personal favour, but something that should have been dealt with a lot sooner. Nevertheless, it's being dealt with now.

    Anyway, back to the case. Thanks for the Stepchange referral, I will closer at them to see what can be done.

    Of course we understand that time will be one of the major factors in this case, but our concern is that she won't be allowed any of the really poor quality cards such as Capital One or Vanquis.

    Part of the plan is to make use of the lifetime ISA that comes in effect next month, so that by the time my client can get a mortgage (which may possibly be 2021), then she would have had the benefit of an extra £4,000 from the government, by investing £4,000 each year for 2018,19,20,21. We completely understand that it's a long term plan, the specific question that I am raising is what exactly can be done to speed up this process? Or what agreements (even lower than Vanquis / Capital One) can be obtained to improve her credit until that time.
    • zx81
    • By zx81 9th Mar 17, 3:27 PM
    • 14,379 Posts
    • 15,159 Thanks
    zx81
    • #6
    • 9th Mar 17, 3:27 PM
    • #6
    • 9th Mar 17, 3:27 PM
    Or what agreements (even lower than Vanquis / Capital One) can be obtained to improve her credit until that time.
    Originally posted by QuickRebates
    Post 3 has outlined your options.
    • Arleen
    • By Arleen 9th Mar 17, 3:27 PM
    • 1,025 Posts
    • 747 Thanks
    Arleen
    • #7
    • 9th Mar 17, 3:27 PM
    • #7
    • 9th Mar 17, 3:27 PM
    Don't look closer at them, just give your "client" number for stepchange and tell them to call them, as they are trained to deal with those situations. Meanwhile, you are not qualified to give out advice on your own, and there is no reason for you to play the middleman.
    • TempUserName123
    • By TempUserName123 9th Mar 17, 3:45 PM
    • 33 Posts
    • 8 Thanks
    TempUserName123
    • #8
    • 9th Mar 17, 3:45 PM
    • #8
    • 9th Mar 17, 3:45 PM
    Well I do apologise for trying to help a member of my family.

    Perhaps you should get off your high horse. I am more than qualified in my particular financial field, which involves money, but personal credit is not something I am familiar with. By researching and digging into facts deeper isn't going to cause the person any harm, and you must remember that we are doing this to improve the situation. I am not "giving out advice". I am looking for advice.

    Furthermore, you know nothing about myself or my family member, but I will have you know that I am personally helping them with a cash flow forecast to help them avoid these troubles in the future.

    So again, please get off your high horse, you're not talking to a fickle "middleman" here. I'm taking time out of my schedule to help someone in need. Better myself look into this with a bit of financial knowledge than my client who is far from experienced in financial instruments and agreements.

    Nevertheless, we will look into StepChange, as you said they are better positioned to help my client further. It is a suggestion like this that has made my original question useful in the first place. So before making accusations that I shouldn't be helping my client, you will surely agree that this has been a fruitful post in that we have been directed to the proper people.
    • Arleen
    • By Arleen 9th Mar 17, 3:51 PM
    • 1,025 Posts
    • 747 Thanks
    Arleen
    • #9
    • 9th Mar 17, 3:51 PM
    • #9
    • 9th Mar 17, 3:51 PM
    The longer you will keep referring to as "client", the more I will keep you to a professional standard. And your questions here shows lacks of basic knowledge in the field, which makes me worry that there is an actual client here, possibly paying you money, for advice you are not qualified to give.
    And that is just wrong, hence the notion to just give that client number for stepchange and let them handle it. They can help out with all financial aspects of this, including forecasting.
    • Rothstein
    • By Rothstein 9th Mar 17, 4:04 PM
    • 90 Posts
    • 11 Thanks
    Rothstein
    Quickrebates you are wasting your time in here, its a private gentlemens club and they are stuck in 1988
    • TempUserName123
    • By TempUserName123 9th Mar 17, 4:07 PM
    • 33 Posts
    • 8 Thanks
    TempUserName123
    I refer again to my statement that I am "looking for advice" not "giving out advice". Stop twisting my initial investigations into something more insincere.

    By stating my family member is a client is irrelevant. "Client is shorter, and just seems more courteous.

    I will also like to state for the record that I am a qualified member of three regulatory financial organisations, one of which is of a Masters degree level. Part of the examinations and regulations covered ethics quite heavily. For myself to take upon a "paying client" like this would be completely inappropriate and unethical. You are 100% incorrect and your beliefs are false. Furthermore, my annual corporate client income is in six figures, I would not even have any commercial interest in taking business on of this nature.

    Back to the issue, is it really that bad that someone in a professional position offers to help a member of their family seek the advice they need? Again, thanks to my post on this forum, we have now discovered Stepchange. We are now a step forward in making the situation better because I have raised the question in an appropriate community.

    Your comments are extremely negative towards myself and you have not proven to be of any use whatsoever. You are clearly making false assumptions on practically zero knowledge of the circumstances which just shows how quick you are to fly off the handle. Fickle comments indeed and you should get over yourself Arleen,

    To everyone else, thanks for the help
    • Arleen
    • By Arleen 9th Mar 17, 4:14 PM
    • 1,025 Posts
    • 747 Thanks
    Arleen
    We are now a step forward in making the situation better because I have raised the question in an appropriate community.
    Originally posted by QuickRebates
    Great. Now use it, give your "client" number for stepchange and let people who are qualified in the field handle it. Ones who know how to build your credit file for free, which quite frankly only requires a quick google because it's a subjcect of many articles on this site, and even more topics on the forums.
    • GingerBob
    • By GingerBob 9th Mar 17, 4:31 PM
    • 3,614 Posts
    • 1,653 Thanks
    GingerBob
    Quickrebates you are wasting your time in here, its a private gentlemens club and they are stuck in 1988
    Originally posted by Rothstein

    I think you mean 1888 - well, some of them, anyway.
    • RedDevil1984
    • By RedDevil1984 16th Mar 17, 2:52 PM
    • 1 Posts
    • 0 Thanks
    RedDevil1984
    Hi I'm new to this site and I came across this particular forum as I'm looking for a similar resolution so I hope you can help without judgement.

    First and formost, I have been really stupid with money since I can remember and I am now at a point where credit is refused left right and centre.

    Im in desperate need of help with regards to rebuilding my credit report as I have plans to start a family and potentially own my own house rather than rent.

    Apart from stepchange, is there anyone out there who can help my case just by solely concentrating and focusing on rebuilding my credit score rather than enter into a DMP route kind of thing like a kind of advisor who liases with you once a month let's say for example?

    I look forward to your responses.

    Regards
    • zx81
    • By zx81 16th Mar 17, 4:48 PM
    • 14,379 Posts
    • 15,159 Thanks
    zx81
    What's the detail of your poor credit history? What is on your files?

    Do you also have debts to clear? What is the status of these?
    • Ben8282
    • By Ben8282 17th Mar 17, 12:57 AM
    • 2,071 Posts
    • 914 Thanks
    Ben8282
    The longer you will keep referring to as "client", the more I will keep you to a professional standard. And your questions here shows lacks of basic knowledge in the field, which makes me worry that there is an actual client here, possibly paying you money, for advice you are not qualified to give.
    And that is just wrong, hence the notion to just give that client number for stepchange and let them handle it. They can help out with all financial aspects of this, including forecasting.
    Originally posted by Arleen

    I fully agree. A family member you are helping out is not a 'client'. Your posts and questions clearly show a very amateur knowledge of this subject.
    • Ben8282
    • By Ben8282 17th Mar 17, 1:01 AM
    • 2,071 Posts
    • 914 Thanks
    Ben8282
    Hi I'm new to this site and I came across this particular forum as I'm looking for a similar resolution so I hope you can help without judgement.

    First and formost, I have been really stupid with money since I can remember and I am now at a point where credit is refused left right and centre.

    Im in desperate need of help with regards to rebuilding my credit report as I have plans to start a family and potentially own my own house rather than rent.

    Apart from stepchange, is there anyone out there who can help my case just by solely concentrating and focusing on rebuilding my credit score rather than enter into a DMP route kind of thing like a kind of advisor who liases with you once a month let's say for example?

    I look forward to your responses.

    Regards
    Originally posted by RedDevil1984

    Go bankrupt. Yours score will jump to 999. You won't get any credit but you will have a perfect credit score.
    • DCFC79
    • By DCFC79 17th Mar 17, 8:03 AM
    • 30,399 Posts
    • 19,220 Thanks
    DCFC79
    Hi I'm new to this site and I came across this particular forum as I'm looking for a similar resolution so I hope you can help without judgement.

    First and formost, I have been really stupid with money since I can remember and I am now at a point where credit is refused left right and centre.

    Im in desperate need of help with regards to rebuilding my credit report as I have plans to start a family and potentially own my own house rather than rent.

    Apart from stepchange, is there anyone out there who can help my case just by solely concentrating and focusing on rebuilding my credit score rather than enter into a DMP route kind of thing like a kind of advisor who liases with you once a month let's say for example?

    I look forward to your responses.

    Regards
    Originally posted by RedDevil1984
    Should really have started your own thread.

    As far as I know there is no 1 that do what your after.

    If your in debt theres stepchange, payplan, national debtline, debt advice foundation.

    Its not your score your improving, your history is what lenders see.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
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