Improving a rubbish credit rating...

Staciep88

Hi,

If some1 had outstanding balances on a creditcard and a loan totalling £3750 and is really working to get them doen to £0 (in about 10 months time) would you suggest them getting a credit card (Capital one - 34.9%!!) which will improve there credit rating - even if they just spent £5 on it per month and then paid it in full. Or is the fact that the person still owes outstanding money that getting the card will not improve his rating at all until everything is clear? Just thinking ahead really - lowering the outstanding balance whilst improving the credit rating at the same time?

Thank you

nzseries1

If he isn't making any late payments on the existing credit card and loan, then he will already be rebuilding his credit rating by paying the credit card and loan off.

It's likely that getting a second credit card and making a small purchase will also help the rating, but personally I don't think it's required here.

Staciep88

Thank you. I wasnt sure if it would make no difference as he is still in debt.

CLAPTON

Being in debt, doesn't of itself give you a bad credit ratings...
its not paying the repayments on time that make the rating bad.

Depending upon his income being in debt by 3-4k will not adversely affect this credit rating.

too much debt will adversely affect his ability to get more credit on affordability grounds.

does he have a bad credit rating and why?

Staciep88

He does have a bad credit rating yes - we did check it once but I cannot remember what it was. He cannot get any credit cards / loans/ any credit now. On his loan that now stands at £851.03 - he has PPI (stupid i know - this was a while ago - before i knew him anyway!) and he got made redundant and according to him PPI didnt pay out correctly (i.e. not even paying min payments) putting him behind, the loan should have been paid off last year but due to that, it hasnt been. Also I know that he has missed a couple payments on the credit card (not within the last 6 months i wouldnt think) but know its all in order and big chunks of money are getting paid off regularly. Just wanting to improve his credit rating at the same time which is why i thought of this idea.

thanks

Idiophreak

!!! others have said, just making the payments on the existing debts will help build his credit rating. Doing so on another card *may* help, but I'm not too sure. More importantly, make sure he's on the electoral roll and make sure anything incorrect gets stricken from his credit record.

Staciep88

Idiophreak wrote: »

!!! others have said, just making the payments on the existing debts will help build his credit rating. Doing so on another card *may* help, but I'm not too sure. More importantly, make sure he's on the electoral roll and make sure anything incorrect gets stricken from his credit record.

I know, I was answering the above question. thanks

Idiophreak

Idiophreak wrote: »

!!! others have said, just making the payments on the existing debts will help build his credit rating. Doing so on another card *may* help, but I'm not too sure. More importantly, make sure he's on the electoral roll and make sure anything incorrect gets stricken from his credit record.

Lol, what's that about? I was going for "as", I wonder if I got an extra s by accident...woops!

Staciep88

i wasnt trying to offend, soz, just how i read it came out. sorry

CLAPTON

Why isn't he pursuing the PPI issue? You often have to be pretty pusy to get anywhere with them.

Get a copy of his credit records.

Staciep88

Im not sure if he can claim or not as I remember reading that you could only do so if the PPI didnt pay out when need be? As they did pay out but it wasnt enough to meet min.payments.

How does he go about these credit records then? ring them up?