Payments Advice..

Matt7681

Hi all.

I am currently having some problems with bad credit. I have struggled in the past with repayments have have a number of defaulted accounts on my credit file (although no CCJ's etc). I have recently been paying off all of the defaulted accounts and closing them, have not applied for any credit recently, have got myself onto the electoral role and have not missed any payments.

As a result, my credit score on Experian has improved quite quickly, but now appears to have hit a ceiling of 599.. just 1 point off the threshold from "Very Poor" status where I currently am, to the next level up of "poor". This status has been the same now for the last 3 months.

As you can imagine this is pretty demoralising. I queried with Experian why my score is just a single point below moving up another rung, and they basically said that my previous history is preventing improvement. To me, that sounds like it won't ever improve any further because of my previous history, despite the fact that all the accounts have been paid.

My question is is what can I do to improve the situation?

Currently my only financial commitments are my rent and bills, but these aren't displayed on my credit file. I am listed on a tenancy agreement with my housemate and neither of us have missed a single bill or rent payment for over a year, but this isn't reflected at all on my credit file. Is their any way for my rent payments to become listed? It seems frustrating that I have had a perfect record of keeping up with payments on something for so long, and yet this isn't reflected as part of my status, yet previous problems which have been paid are apparently keeping me back.

Has anyone experienced similar or would be able to assist?

Thanks for your time.

System

Hi Matt and welcome along.

I don't believe that you will ever be able to get rental payments listed on your credit file because they are not actually a credit product. If you had a mortgage then that would be different because the money would be loaned to you up front (credit) which you would then repay monthly.

What you need to do is get yourself a credit card that you use to make only very small purchases on and then repay the balance in full each month. This should improve your profile over the course of a few months.

If you have any other credit cards then lower the limits on them all so that you don't have loads of credit available on them. Also get rid of any unused credit cards.

Do you have a contract mobile phone? Something like that would show up on your credit profile so, again, as long as you pay in full every month, it can only improve things.

Others may be along soon with more suggestions.

Good luck!

Matt7681

Hi In the Red, thanks for your help.

Ah, that makes perfect sense actually thinking about it regarding the rent. Didn't look at it that way but yes, that figures.

I'm very cautious about the whole credit card thing in all fairness. I've been turned down even for the bad credit cards before and am nervous about applying for them again, given the footprints they leave. It was a while since I was last turned down for them and before my score took an increase (think it was around the 380 mark before I got on the electoral roll and closed my defaulted accounts - and when i applied for them before), although seeing as I'm still listed under the "Very Poor" category I'm wary of being turned down again and my score decreasing again due to negative applications.

It's a tough dilema.

I have however contemplated getting a Cashplus Creditbuilder jobbie. I certainly don't see how it could hurt, as making the £5p/m repayment on that is certainly no issue. Is this something people would generally recommend?

Thanks again for your comments and anymore from others

System

Matt7681 wrote: »

I've been turned down even for the bad credit cards before and am nervous about applying for them again, given the footprints they leave. It was a while since I was last turned down for them and before my score took an increase, although seeing as I'm still listed under the "Very Poor" category I'm wary of being turned down again and my score decreasing again due to negative applications.

I have however contemplated getting a Cashplus Creditbuilder jobbie. I certainly don't see how it could hurt, as making the £5p/m repayment on that is certainly no issue.

Hmm, yes it is a dilemma. Unfortunately, usually the only way of improving credit profiles is to actually get credit and show you are good for the money. Have you thought about getting a contract for a mobile phone? Doesn't need to cost loads (mine is £15 a month) and it will count towards your 'good' credit.

I don't know much about the creditbuilder cards but if you're comfortable paying a fee and it will improve things then I don't see how it can hurt.

dancingfairy

There's an article on this by Martin here:
http://www.moneysavingexpert.com/loans/credit-rating-credit-score
although it sounds like you're doing most things I can think of anyway.
Good Luck
df