how can i boost my credit rating?

dawid_2

sorry folks, didn't know where to post this one.

i recently enquired about a mortgage. i was told i was a borderline pass for credit which meant lower amounts and higher interest rate. the fact that i am staff at the particular bank didnt matter!

i have since checked my credit rating and noticed one flaw. that is that i have a default of £250 from about 6 years ago. i wasn't previously aware of it.

would it be good to satisfy this or would it drop off my credit rating eventually?

is there any other way of boosting my credit rating, like taking out a credit card or something? I've never had a credit card and always been refused store cards before.

OliveOyl_2

At 6 years it's close to dropping off.

Are you on the electoral roll? Big brownie points for that
And for some companies, giving a landline number counts

Then there is "available credit" v "what is outstanding" i.e. If you're up to your limits but not many cards, or you have available masses of credit but only owe a bit on a couple. I'm not sure how they weight them all, but for credit card applications it would make more of a difference.

How come they don't do staff mortgages? (I had one once 2.5% in 1985)

I've just noticed that you don't have a credit card - so they can't read if you are good with credit, you have no regular history.
You could apply for a cc and use it for small amounts which you pay off in full - that would be a BIG help.

dawid_2

I am on the electoral roll. I will give a landline number in future. I know that not applying for any credit in the last 6 months helps.

What would be the biggest boost - paying off the default which is 6 years old in May, or taking out (if i can...) a credit card and buying small amounts and paying it off in full?

GeorgeUK

The default will drop off your file after 6 years.

After 6 years (5 in Scotland), if no payment has been made towards a debt or written acknowledgement of the debt, then the debt becomes statute barred and is unenforcable. This would mean that payment is no longer required.

It would probably be a good idea to take out a credit card. This way you could build up a good credit history - use the card and pay off in full each month. The CRA will register these payments and creditors will see that you pay debts on time. This will help with your credit rating once you have built up a history.

It is also important that you are registered on the electoral roll at your address

dawid_2

So if i am borderline pass for credit just now, the default drops off in a couple of months, i don't do any credit searches for the next 6 months (did one for the mortgate last month), and take out a credit card and use small amounts, would this significantly boost my rating?

bathgatebuyer

Getting rid of the default will be the biggest thing. Let it drop off your credit record and make sure that at the 6th year anniversary it is definitely removed (sometimes they linger a bit longer!). Definitely get on the electoral register and get a credit card if possible - just enough for you to spend and repay each month. It will slowly but silently build up your score. Having a record which says, "No missed payments in the last 12 months" makes a hell of a difference.

dawid_2

Thanks for the help folks

Smamfer

Hope you dont mind me butting in but wondered if i could grab some advice too

Today myself and bf find out if we have passed a credit check for a house rental. put down a few facts what you think

I have debt but no ccj's 2 credit cards with credit available on both, got a loan in 2007 and in dec 2007 had an estate agent pass me for a house to rent back then, thing that lets me down is moving about. i was on the electoral roll at my last renting address but now im house sharing i havent been on one for a year. I have never defaulted on loans/cc and do my pads so pay over the minimum payment. I do have a debt with a car company but even after writing they havent gotten back in touch with me accepting my offer of payment. I had a debt with bt but now pay this off £30 a month which they agreed to.. I also had my cc upped without requesting it by double last month by Halifax

My bf earns a good wage and recently we swapped him over for a 0% balance transfer cc.. he has 2 cc's and one loan. never missed a payment and available credit on both.

I know ill probably find out in a few hours but im so worried my debt would let us down from renting... what you think?

dollydo

Hi, I think that you will be fine for house rental. We had credit checks for our rental and we are both on DMP's. All they were concerned about was bankruptcy and ccj's. We were told by our letting agent it is a basic check for those two things only. So fingers crossed for you!

Smamfer

dollydo wrote: »

Hi, I think that you will be fine for house rental. We had credit checks for our rental and we are both on DMP's. All they were concerned about was bankruptcy and ccj's. We were told by our letting agent it is a basic check for those two things only. So fingers crossed for you!

thanks very much...... god im sooo nervous!