increasing my credit score. HELP!!!

dunc1n_2

Hey folks,

Dont know if this is in the right section of the forums or no but I couldnt find a section discussing credit reports.

Anyhoo, I have a "poor" credit rating (the score is in the 600's), and I am trying to up my score and sort out all my financial problems that i have caused myself due to my "wild" living in the past.

So....... I have 2 defaults on my report, one was from vodaphone and the other is from capitla one. Now the vodaphone one has been settled BUT the default is still there, I contacted vodaphone and asked them if they would kindly remove the default from my report but they said it is out of their power to do such a thing and the default will stay on my report for 6 years. Is this true? I know that defaults stay on there for 6 years but I thoght that you could ask the companies to remove them?!?!

Also the capital one default is still to be sorted out (Im in the middle of sorting it now). If I settle the debt will the credit score go up because its been settled?? Or, will it stay the same because it is still marked as a "default" on my report???

Oh, and how much will my score increase if register myself on the electoral roll??

Thanks in advance folks

Dunc1n

michael1983l

There are many ways to increase your credit worthiness, these imo are the best ways

Always pay on time and more than your minimum payment
Have a low outstanding credit to available credit ratio
Never use an overdraft for more than a few days
Be on the electoral role
Close any unused credit accounts
Do not make many searches on your credit file


Also the lenders look for

Stability of job
stability of residential address
good income with lots of disposable cash.


As for your defaults, I doubt any lender would remove them off your file unless they were added by mistake, whilst you have defaults on your file you will struggle for credit unless you can prove you have turned the corner by doing what I have stated for a prolonged period of time.

[Deleted User]

Electoral role will make a difference.

You can ask companies to remove defaults from your credit file, but unless they are there in error, they do not have to remove them.

dunc1n_2

Thing is with this, is that I cant get a credit card as my rating is so low. So am I not stuck here?

If I cant get a credit card or loan, does this mean I cant increse my score?

Also, what do you mean by "outstanding credit to credit available ratio"? Sorry if im being dumb here.

My job is very stable and very well paid. Hence thats me now looking to sort out all my old finance problems.

Any help on my questions I posted earlier too?

Thanks again

Dunc1n

CLAPTON

basiaclly an unsettled CCJ means that you either can't or won't pay your debts
whyever would any responsible lender give money to some-one that either can't or won't pay their existing debts?

michael1983l

You maybe could get a vanquis card or capital one card, but your limit would be low and the APR high.

Your credit ratio is what you have available on say your overdraft/credit cards to the amount in use. so say you had an O/D of £300 and a credit card with a limit of £700. And you had an outstanding balance accross them all of £100, you would be using 10% of your available credit. Borrowers are apparently looking for below 30% these days but below 75% was always classed as the norm in the days where credit was easily available. Loans and mortgages are not included in this ratio but loans/HP will be counted in your overall credit.

Your overall credit is how much you are currently borrowing/available to borrow to salary/income. Generally they dont lend one person more than 50% of their income overall.

Whenever a debt is settled it will increase your score as it shows you eventually pay your debts.

michael1983l

CLAPTON wrote: »

basiaclly an unsettled CCJ means that you either can't or won't pay your debts
whyever would any responsible lender give money to some-one that either can't or won't pay their existing debts?

A default is not a CCJ, where has he said he has a CCJ?, defaults mean he wasn't so responsible in the past but eventually settled the debt. the further into the past these are the less impact they will have on the borrower. Once it hits 6 years they are gone

CLAPTON

michael1983l wrote: »

A default is not a CCJ, where has he said he has a CCJ?, defaults mean he wasn't so responsible in the past but eventually settled the debt. the further into the past these are the less impact they will have on the borrower. Once it hits 6 years they are gone

indeed you are correct, I misread it
there is an unsettled default and not a CCJ
however an unsettled default shows an inability or unwillingness to pay current debts and has a similar effect on a potential lender.

michael1983l

Indeed if it is unsettled, he will most likely not get any credit. I missed the unsettled bit.

dunc1n_2

Great thanks for your help there folks.

So basically I think all I have to do is clear this debt with capital one (which i am in progress of doing) and register myslef on the electoral roll. Am I right???
I highly doubt I'll get a credit card from capital one as they are the ones that I have a debt to!!!! I take it once I clear my debt to them, then they wont give me another one again..... will they?? If they do how long would I need to wait before I apply for one again?

Everything else that you mentioned I seem to have i.e. the percentage of what I owe is well below my salary (not including mortgage), and i am not in my overdraft at all.

Thanks

michael1983l

I would leave it at least 12 months from settling your latest default before reapplying for credit. In the mean time you could set up a savings account with your bank and make a small saving each month without dipping into it. This would show your own bank that you have disposable income and run your accounts well and they may well give you one of their lending products in 12 months, saving the need to go to sub prime to get back on track.