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

Moggles_2

walshy.walsh wrote: »

So after 6 months ish, a second card would be easier to obtain? Bear in mind, that I don't particularly want any cards, just more a means to an end!

I understand that, but it takes time to build a good credit history.

Judging from posts to this forum, most users find it easier to get the credit facilities they want, once they've operated a starter credit card plus one other credit card for a bit. This suggests lenders look on applicants with at least 12 months payment history more favourably.

walshy.walsh

thanks for the advice!

welly_59

how much difference does settling a default or ccj make to your credit score? i've got a few spare quid a month and cant decide whether to pay off my loan early or pay my past debts

microbebi

Moggles wrote: »

How many is several? If you have five credit cards or fewer (and you've said that none is maxed out), it's unlikely your application would be rejected for this reason alone, unless you have a low annual income. Your credit limit on the new card could be affected though.

I have four cards with total limit of £18,700 of which I'm using just over £15K. My annual income is enough to pay back this in the next couple of years.

After what you've said Moggles (many thanks again) I'm now wondering whether my credit score isn't great (I was refused an application earlier in the year) because of a missed CC payment...Well two actually, one 12 mths ago (my bad) and the other a couple of months ago (credit card company screw-up) ....I suppose I'll just have to wait it out...it's annoying though as I could do with some access to credit right now and cannot afford to pay off any of the cards at this time. Cheers mate.

LPM1978

Hi,

I am looking for some advice on what to do/how to improve my credit?

Up until recently I had a bad credit history, but the default (2K) on my account was taken off my record in September.

We tried to get a loan in Sept to put all debt into one & got refused & I was also refused for a bad credit c/c ( 35% apr).

I thought I would leave it for a couple of months & try again which I did this week. I got refused for a Tesco C/C and 2 bad credit C/C on the same day!!

My Wife’s Credit is ok, she has 3 C/C and 3 Store cards, payment are all up to date but there is 1 maybe 2 late payments a few months back.
I have a Loan that ends in March & 2 Mobile Phone contracts which are all paid on time & have been for over 6 months.

We have had a mortgage since November Last year & have never missed a payment. ( only went on electoral role in march)

I don’t want to apply again soon as will make my credit look awful but need to know what I can do to improve my credit.

Should I wait for my Loan to be settled in March then try again!!!!

Please help, the mortgage fix rate comes to an end in Jan 2010 and I want to do all I can to get my credit rating as good as possible for when this comes around, I have only been applying for cards to improve my credit!!

Moggles_2

microbebi wrote: »

I'm now wondering whether my credit score isn't great (I was refused an application earlier in the year because of a missed CC payment.) Well two actually, one 12 months ago (my bad) and the other a couple of months ago (credit card company screw-up). I suppose I'll just have to wait it out. It's annoying though, as I could do with some access to credit right now and cannot afford to pay off any of the cards at this time.

If you mean missed payments (as opposed to late ones), then the only thing that will improve your credit rating is the passing of time, certainly.

Might be an idea to set up direct debits, if you haven't already, to pay the minimum amounts required. That way, it's your providers' responsibility, not yours, to make sure the monthly repayments get there on time

JimmyTheWig

Waiting until March is probably sensible, unless you particularly need credit now.
The other thing that you haven't mentioned is if you've had a look at your credit reports. the article explains how to do this for free.
There might be something on these that you had forgotten about. Or there might be incorrect information on them.

If you have already done this and they look ok then all I can think is that the credit companies think you are overstretched with your current debt compared to your income.

stellag_2

My credit score is 651 and I'm trying to improve it. I don't have a credit card and I want to apply for one (part of the improvement plan). Do you think I'll get it or be rejected and end up with a worse score after trying?
Thanks:o

JimmyTheWig

stellag wrote: »

My credit score is 651 and I'm trying to improve it. I don't have a credit card and I want to apply for one (part of the improvement plan). Do you think I'll get it or be rejected and end up with a worse score after trying?

A credit score is a pretty meaningless number. All lenders use different criteria to judge potential customers.
So without a lot more information we can't begin to guess whether you would get a card or not.

LPM1978

Thanks Jimmy,

I got a call this morning and have been approve for one of the sub prime cards. Just going to be very carful with this. We have no real need for the credit it is purley for credit rating building.