Bad Credit..... help!!

geordie_ben

OK, so through terrible money ways I have a bad credit rating but...

My debt is now being paid off.

Here's the story...

I had around £7500 of debt on stupidly high interest cards and overdrafts

I have paid off my £1000 overdraft fully and closed the account

I have BT'd and paid off my Virgin Card (34.9%) and its sat with a limit of £3000 and a £0 balance

My mother kindly BT'd the rest of my debt onto her credit cards at a nice low rate and i'm paying off £500 a month

My question is...

Do I use my virgin card for a small amount, £5 a month and pay off the full amount every month by direct debit to build my credit rating back up....

Or

Will my credit 'reset' its self after a period of time now that the only 'credit' thing I have is my mobile phone??

I'm confussled!!

Robert_Sterling

geordie_ben wrote: »

I'm confussled!!

Have you seen a doctor? What are the symptoms?

debtdestroyer007

you have just had a bad experience with debt... i would be careful when thinking of trying to use the credit cards again...... the mobile phone should appear along with a current account........ just stick to those for now. if u can manage using small amounts on ur credit card, then its OK...... overtime things should get better.

remember, the more historic the adverse, the less effect it has

good luck

geordie_ben

sorry, blonde monent, what do you mean by "the more historic the adverse, the less effect it has"? bad shows longer than good?

Rose123

Adverse stays on ur file for 6 years. The more recent the adverse the more of an effect it has on your credit file, the longer the adverse has been on your CF, the les effect it has on ur score as it happened a long time ago.

E.g. If you missed a couple of payments on ur mobile phone contract in the last couple of months and you tried to apply for another credit facility this month, those missed payments would have a bad effect on the credit decision as the missed payments were recent, whereas if you had a couple of missed payments, lets say 3 years ago, it would hardly have an effect on the credit decision as it was so long ago

Does that make sense? I have tried to explain with an example

geordie_ben

yup, makes alot of sense, thanks very much!

5limJim

geordie_ben wrote: »

OK, so through terrible money ways I have a bad credit rating but...

My debt is now being paid off.

Here's the story...

I had around £7500 of debt on stupidly high interest cards and overdrafts

I have paid off my £1000 overdraft fully and closed the account

I have BT'd and paid off my Virgin Card (34.9%) and its sat with a limit of £3000 and a £0 balance

My mother kindly BT'd the rest of my debt onto her credit cards at a nice low rate and i'm paying off £500 a month

My question is...

Do I use my virgin card for a small amount, £5 a month and pay off the full amount every month by direct debit to build my credit rating back up....

Or

Will my credit 'reset' its self after a period of time now that the only 'credit' thing I have is my mobile phone??

I'm confussled!!

didnt know you could do that, my OH offered to do that for me, but i thought the Balance had to be in the cardholders name.....

geordie_ben

5limJim wrote: »

didnt know you could do that, my OH offered to do that for me, but i thought the Balance had to be in the cardholders name.....

nope, well its always worked for me in the past and we've played around with it like that few times before as well.

never-in-doubt

5limJim wrote: »

didnt know you could do that, my OH offered to do that for me, but i thought the Balance had to be in the cardholders name.....

you can BT from any card to card. Its perfectly normal if you want to take on someones debt, lol

Obviously you dont ring and say its the wifes, just say I want to do a BT and give number. If they ask for a/c holders name just say A Other (assume that your mrs is called B Other) - the name is irrelevant when considering BT's.....

Innocent_Guy

OH BT from my card to hers.No prob, she did it online

5limJim

Innocent_Guy wrote: »

OH BT from my card to hers.No prob, she did it online

gutted, i could have saved myself so much interest!!

i honestly thought it was a case of there was no way debt transference could take place