curious question

Happytogetdebtfree

Hi i was wondering that when i am debt free how long does it take for the credit rating to go back up to an excellent rate im thinking for when we try for a bigger mortgage as that is the only thing i inted to have debt with after ive done with my current debts ?? i just wondered what we did do we wait 6 months after we are debt free does your rating gradually rebuild im feeling abit lost at this topic.. thanks in advance

Billy_two_speakers

could take six years

Happytogetdebtfree

I am not bankrupt i dont have any payplan accounts or ivas etc and just pay from our wages your telling me that it will be 6 years before my credit rating becomes useful to my need for a mortgage its crazy :O

poorandindenial

Have you missed any payments, do you have any defaults or have yu always met your monthly repayments? If the answer to all of these is no then you should already have a decent credit 'score' (although there is no one score, everyone calculates risk of loss etc differently) so long as you are on the electorol register, have got a reasonable amount of 'available' credit (not too much sitting spare and not too close to the limits of things although the former may not be such an issue for a mortgage) and your debt to salary ratio is reasonable too (ie indicates that ther is space in your budget to make the repayments).

Edit: martin has a calculator thingy, play with the different options to see what effect variables have on your 'score' or 'rating'

http://www.moneysavingexpert.com/loans/credit-rating-credit-score#checker

Lottebear

As long as you are keeping up with payment, your score is likely to be high, they like people who always have a bit of debt.

Billy_two_speakers

Happytogetdebtfree wrote: »

I am not bankrupt i dont have any payplan accounts or ivas etc and just pay from our wages your telling me that it will be 6 years before my credit rating becomes useful to my need for a mortgage its crazy :O

its a guess and even if its better in 2 years might be 8 years before the banks have money to lend

Moneytroubles_2

How strange I was thinking the same thing earlier, my fix rate mortgage ends in 3 years and im worried I wont get a good deal, which is another reason i want things sorted asap!

Good luck to you X