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

robin_banks

What you need to do is use it, i.e. spend £30 a month, pay it off in full via direct debit, do so for the next 3 months or so, you'll probably find your limit will be increased after 6 months.

Also you wont be paying any interest, that's where sub prime cards nail you.

Rowan_2

welly_59 wrote: »

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

I'd be quite keen to hear advice on this too.
I have two defaults (due to clear in May 2010 and Dec 2011), and I could scrape together the money to pay them back. At the moment I cant even get a mobile phone because of the defaults.

If I paid them off, would it make a difference? Do lenders see a default that has been repaid as less of an issue than a default that is still being paid off?

Or would it just leave me exactly where I am at the moment with a complete inability to get even a phone (for example), and my parents being out of pocket (till I pay them back)?


Cheers

thriftymomma

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?
Thanks:o

1 search shouldnt make too much difference. Let us all know how you get on if you decide to apply.

Grawschbags

bathgatebuyer wrote: »

I'll just update this and say that the marking on my credit account of my Halifax visa beng 'settled' and closed has improves my credit rating by 100 or so points and moved me into the 'Fair' category on Creditexpert which ties in with what happened when settled my Cahoot loan a year back - it seems to add about 100 points onto your actual score with them (which I know is irrelevent, lenders own criteria..................bla bla bla..............)

I have a Sainsburys card which also shows on Credit Expert and I'm hopeful that if I close this over the nextfew months it can have a similar impact to the Halifax card.

Is there a difference between an account saying "settled" or "closed"?

The majority of accounts still visible on my credit file are all showing as being settled - does this mean I have to ask the lender to record it as being closed to show I now have nothing else to do with the account?

Thanks,
Graeme

Moggles_2

Grawschbags wrote: »

Is there a difference between an account saying "settled" or "closed"? The majority of accounts still visible on my credit file are all showing as being settled. Does this mean I have to ask the lender to record it as being closed to show I now have nothing else to do with the account?

If they're marked settled, you can safely assume the accounts have been closed down.

welly_59

Rowan wrote: »

I'd be quite keen to hear advice on this too.
I have two defaults (due to clear in May 2010 and Dec 2011), and I could scrape together the money to pay them back. At the moment I cant even get a mobile phone because of the defaults.

If I paid them off, would it make a difference? Do lenders see a default that has been repaid as less of an issue than a default that is still being paid off?

Or would it just leave me exactly where I am at the moment with a complete inability to get even a phone (for example), and my parents being out of pocket (till I pay them back)?


Cheers

anyone?.....

neilwootton

I have a question.

I have a credit card with Barclaycard and recently had to put £210.00 on it (at 27.9% APR) after something happened with another creditor.

I cannot pay £210.00 in one full swoop so if I pay back £100.00 a month plus the interest accrued will this help my poor credit history at all?

I know this isn't ideal given that I am paying exorbiant amounts of interest but I am curious as to whether or not paying back something a week is (un)helpful or not.

Many thanks!

robin_banks

you've made a payment in excess of the minumum on time, so it wont do any harm, not sure if it will do any good.

djsnakehipschris

Hi All,

May seem like a daft question but does going over your overdraft / credit card limit affect your rating?

Thanks

Rowan_2

welly_59 wrote: »

anyone?.....

I got impatient, and asked the question in a thread of its own here :

http://forums.moneysavingexpert.com/showthread.html?t=1339135

From the replies I got, it doesnt look worth while paying back a defaulted loan until the default is cleared.