Debt Free at last - What Steps Now?

mac1fm

I have just become debt free for the first time since I was 17 (I am now 32!). I am wondering now what important steps I should be taking in terms of building up a decent credit raiting from this point?

I have been on a DMP with CCCS but received an inheritance which just covered the remaining balances. Up until now my credit rating has been terrible. I currently only have a basic bank account.

What I am wanting to check are any tips (other than the obvious - make every effort now to STAY debt free!) on things I should now do. For example, will it help me to upgrade my bank account to a higher one? Will it help me long-term if I now have 1 credit card that I either don't use or just pay off every month?

Ultimately I am hoping to be able to get a mortgage as soon as I can so I want to find out the optimum ways of getting my credit rating increasing.

Many thanks

DarkConvict

Congratulations on been debt free.

Now your free, i would read the topic on cleaning up your credit report first.

Credit Reference File Clean Up Post Bankruptcy

It is for after bankruptcy but I think it can still apply to ensure your credits have your record up to scratch.

A single credit card, which you pay off in full every month is also good as it shows you have a credit card without any defaults against it. Perhaps just having a credit card from a responsible lender such as a high street bank, but not use it maybe good also as it shows you haven't default on it, even if you never used it.

misspoppy

Hi
Well done on being debt free.

You will need to build up a credit history, mobile phones are a good way of doing this, I have a sim only deal and stick within my limits each month. You could also apply for a credit card but make sure you pay it off in full each month, use it for 1 tank of petrol for example so its not a lot to find each month. It won't be a quick fix especially with how fussy the banks are with mortgage applications at the moment.

Also don't apply for too much credit they say 3 credit checks in 6 months after that it will affect your credit score.

doodledo_2

Congratulations on being debt free. I too became debt free very recently and need to clean up my credit history and build up a score again so will be keeping an eye on this thread for suggestions.