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

GazNicki

My credit rating is very poor (<200/1000) according to my annual credit report. I have 3 ccjs against me and a few old missed payments. Obviously this isn't good but I have read about trying to rebuild a credit score using credit cards. My initial idea is to apply for a vanquis or similar and buy my weekly fuel allowance on it and repay it every month in full.
Would this work or am I living in a fantasty land?

BugsyBrowne

GazNicki wrote: »

My credit rating is very poor (<200/1000) according to my annual credit report. I have 3 ccjs against me and a few old missed payments. Obviously this isn't good but I have read about trying to rebuild a credit score using credit cards. My initial idea is to apply for a vanquis or similar and buy my weekly fuel allowance on it and repay it every month in full.
Would this work or am I living in a fantasty land?

You can't repair a credit report with CCJ's on there.

GazNicki

So I guess I am screwed then?

BugsyBrowne

GazNicki wrote: »

So I guess I am screwed then?

You can still try and build a credit history for when the CCJ's eventually drop off your files though.

GazNicki

My thinking now is that clearing anything negative on the files in time for the ccjs to remove? Will a credit rating creep up as debts expire from the report or are removed?

MoneySaverLog

femfiona wrote: »

I have just completed the credit checker and came out either good or very weak depending on my answer to this question:

"In the last 6 years have you defaulted on a credit product, incurred a County Court Judgment, had an Individual Voluntary Arrangement or been made bankrupt?"

I currently have accounts which are being paid through Consumer Credit Counselling Service after a period of non-payment due to my partner losing her job - does this count as a default under this question? I have a feeling it does but would like to have this clarified.

Thanks

Yes, you defaulted on the original agreement, it will show as a black D on your credit file. Whoever was your original creditor should have sent a "Default Notice" to you too.

Check your credit file :-)

MoneySaverLog

GazNicki wrote: »

My thinking now is that clearing anything negative on the files in time for the ccjs to remove? Will a credit rating creep up as debts expire from the report or are removed?

Yes time will heal... Unfortunately it takes 6 years.

You are stumped however if they ask "Have you ever had....." and you have to answer YES FOREVER Usually on a mortgage application :-(

GazNicki

But the answer of yes coud be outweighed by a much improved credit rating right?

MoneySaverLog

It's a question that gets scored. How it's scored will differ between who you go to.

Forget any score/rating the credit reference agencies give, it's meaningless.

e.g. Vanquis may accept you, where as first direct will decline you for a credit card. Both banks have a different attitude towards this risk and your answer to it.

debrag

How do I sort out 2 defaults neither doing anything after sending in multiple letters.

1 on DRO which has finish (2009) the other was originally on DRO but the creditor, after sending me a letter to say satisfied, sold it to a DCA.