Rebuild Credit Rating

bobins

Hello there, I am looking to find some advice on rebuilding my credit rating over the next year or so.

I am a 25 year old professional earning £25500 a year. I am a homeowner and have a mortgage of £82000 @ £470 a month fixed. I currently have no other debts!

Unfortunately I dont have a great credit rating due to a default and 1 late payment from a few years ago as a student. Any loan or credit I have had in the last 18 months has been payed each month without missing a payment and no defaults!

My question I guess is even though I have a default and arrear listed on my account from a while ago, how long will it take to build my score back up by continuing to pay my mortgage on time (obviously) and using my credit card a little each month but repaying in full!

Just to add, I recently applied for an American Express and got refused which wasnt very nice but got me looking at my credit files..

How long will I be classed as a bad egg for a few mistakes I made as a student?? :rolleyes:

Many Thanks

CLAPTON

after six years the default will drop off your credit files

bobins

Thanks

6 Years is a long time but I guess thats the price you pay!

Will my credit score gradually creep up due to good performance despite the default being there?

jakemuk

Hi Bobins,

Have a look at the sub prime thread, Many ideas on boosting ratings, Maybe get one of the sub prime cards and pay for say your petrol or shopping and pay it in full at the end of month, Will add those green zeros on your file nicely

bobins

Hi Jakemuk,

Well I already have a credit card that has a balance of £0 with a £1500 limit so I guess I could just continue to use this for food / petrol and clear the balance each month so I dont incur any interest charges?

jakemuk

bobins wrote: »

Hi Jakemuk,

Well I already have a credit card that has a balance of £0 with a £1500 limit so I guess I could just continue to use this for food / petrol and clear the balance each month so I dont incur any interest charges?

Yeah but the more green zeros you have on your credit file the better, So you could say use the one you have know for your fuel, And another for food, The keys is discipline and paying in full

bobins

and remembering pin numbers

ha, thanks alot though

Fire_Fox

Don't see what your PIN has to do with it? Set up a direct debit for at least minimum payments (ideally in full) so you NEVER get the date wrong/ contract bird flu/ have a cheque lost in the post and end up with another late payment marked on your file.

bobins

Fire_Fox wrote: »

Don't see what your PIN has to do with it? Set up a direct debit for at least minimum payments (ideally in full) so you NEVER get the date wrong/ contract bird flu/ have a cheque lost in the post and end up with another late payment marked on your file.

Think you missed the point there to be honest!

The more Credit / Debit Cards, the more pin numbers I have to remember to actually use them for petrol, food etc. It was meant as a joke anyway so dont worry

magiciansgirl

bobins wrote: »

Think you missed the point there to be honest!

The more Credit / Debit Cards, the more pin numbers I have to remember to actually use them for petrol, food etc. It was meant as a joke anyway so dont worry

Hi, just to say that until recently I didn't know that taking cash out on a credit card (any credit card) is viewed as 'a sign of distress' by the card companies, so best to avoid doing this and just use your debit card. I was rather horrified to think that I have been emitting distress signals without realising it when I've been working hard to improve my credit rating. As a result I cut up my M & S card....

Another thought; are you on the electoral role? It makes a big difference and is proof of stability.

New cards; t he Vanquis card is easy to get - my credit rating is terrible and I got one very swiftly. I'm paying minimum per month to make absolutely sure I never miss a payment but will pay off full balance electronically as well.

bobins

Yeah, thats a big no no, I have never taken cash out on a credit card! Although I have probably been tempted at times.

I have decided to just stick with my one card and continue to repay the balance in full each month for another year at least. See where that gets me.

Thanks to all