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

[Deleted User]

The best you can do is hope.

They won't remove if you battle them, and Magellan are sub-prime but do require at least 1 year of perfect conduct

Many companies will report it as paid on time as long as it's received before they update the CRAs. You literally won't know until you see your credit file and see whether April is on time or 1 month late.

Setup a direct debit for the minimum to avoid that in future!

BlueStone Mortgages are more relaxed about recent missed payments (1 in last 6 months) - You have to go through a broker though. Could be worth speaking to a broker anyway - see what other options you have. If it was over 3 years since your discharge there are many companies that would consider you - particularly if you are lucky and don't get late payment hits on your file.

AnonymousCoward

The cost to service my car is around £600. I was thinking of getting a 0% interest card, based on the MSE list, and paying £50-£100 per month, which is above the minimum payment.

My credit rating is excellent as I've always paid in full for the four years I've had my current card. Will doing this harm it?

ladys039

Morning all

Around October 2015, having spoken to my bank manager, I was unable to upgrade my bank account from the basic to one where I could at least get a cheque book, due to my poor credit rating and a "note" on my file! I refused to waste time and money subscribing to credit checking schemes to see my credit score, okay I was just afraid to look!

So, confused and determined, I turned to :money:MSE forums to improve your credit score and decided to get a credit card for us, the untouchables! I was refused by even Barclay who claim to accept anyone! So my final choice was Capital One, who said yes and offered me a card with just £150 credit.

So, when I received my card I spent in it, only about £40, an amount I could easily repay IN FULL when the statement came. This I did every month, spent small amounts and paid it off and after about 4 months my credit limit was raised to £450! I cheered but kept up my routine and never spent more than £50 and paid if off in full every month but, I never lost focus of my main goal which was to upgrade my bank account to one that a grown up person has!

On June 27 around 10pm I was browsing around in the Internet and decided to do some banking online and there the upgrade button flashed at me so, I pressed it and after about 2 minutes of pressing buttons I was approved I even had the option of having a cheque book, which I declined for some reason, thinking about it now, I should have said yes!

Anyway, I was so overjoyed I was offered the option of applying for one of their credit cards. I just thought "Why not" and went ahead and applied. To my astonishment, I was approved with a credit limit of....... £2,500.00!!!!! :j Elated, I woke my son up to tell him the news, to which he just grunted and went back to sleep!

I had a lot of previous debts which I did try to settle by paying £1 a month to clear and a couple I did just run away from and I am not proud of it. But, one found me and we agreed a small repayment amount of £2.00 a month and my Local authority threatened me (in May 2016) with fines unless I signed the form to go onto the electoral register. Even my support worker was shocked by their antics to get me to sign up!

I am extremely happy at the thought that at the very least, when my son gets his driving licence, I will be in a position (along with with my savings) to buy him a small, secondhand car!

I am writing to let you know that it is possible to improve your credit score I did it and have never had a good credit rating, although I have always been able to upgrade my phone contract! So, persevere and do not run away, offer something even a pound a month to clear your debts. But, most of all we get into debt to obtain "THINGS WE DO NOT NEED", try to save instead and get the thrill from watching your savings grow. I am in benefits alas I am disabled, and if I can manage to save four figures plus, then anyone can.

Thank you Martin, I actually would not have been able to do it without your forums and advice!

languagestudent

I have never had credit before, and so I am looking at building my score up for the first time. I was considering a credit card with a low limit so that it is manageable and I can pay it off in full each month. Is this a good way to go about building my score, even if I don't use the card much?

[Deleted User]

It's a good way to build a credit history.

But ignore anything that may happen with your score. It's completely irrelevant.

carolynw

I am trying to build up our credit score and thought that applying for a credit card would help. I was accepted and have set up a DD to repay in full each month. So far my credit score has gone down - how long do you think it will be before my credit score starts to improve? Thanks

Thrugelmir

Opening a new credit account will automatically result in a negative outlook. Obtaining credit per se does not improve your "score". Responsible management and use of the account will improve your profile. Though this will take time to build.

carolynw

Thank you, have you any idea how long it might be before we see any benefit. We are being very careful with the card and using it only for petrol so that it won't increase our expenditure. Have set a DD to ensure it is paid off in full each month. We really need to improve our credit score to be able to move house.

[Deleted User]

Not your score. Your credit history.

Don't take any action based on your score.

carolynw

So how can we improve our credit score???