Action Plan!

Psykicpup

Hi peeps - I'm a newb - I have posted here but this is my 1st Thread!

I would really like some advise from those of you that are/have dealt with this.

Up until about 2yrs ago I was a complete nightmare with money spending far more than I was earning & being stung unmercilessly with charges for the priviledge! Now in my defence, hubby & I's income had been poor or very poor (various periods of unemployment & temp jobs)

Then the bank threatened to close my account because I was running it so badly! In the end, after the lecture, the CSA on the phone arranged a plan to reduce my (unauthorised) overdraft gradually over the next 6 months but also took away my cheque book & combined guarantee/debit card & replaced this with a ATM card only. (Forced lightbulb moment! lol)
This spurred me on to make other changes in my spending life & now I am pretty much debt free -£496 to Provident to go! (Yes I know but really my credit rating is so poor I didnt have a choice)
Which brings me to my question-
I need to improve my credit rating now.:o
I think I still have paid CCJ's hanging over me:o & I defaulted to Capital One so I doubt they will touch me with a barge pole!:eek:
obviously I need to do a credit check - I've read that section - but whats best after that? (note: I have a prepay Mastercard so I'm also not sure if that counts as a credit card or not)
Cheers in advance! Pup

CLAPTON

why do you 'need ' to improve your credit rating?

it will naturally improve if you pay your debts on time.

CCJs and defaults will stay on your credit record for 6 years although there significance does decrease with time.

you could try for one of those awful cards like vanquis that charge huge APRs but make sure to pay off in full each month.

if you're concerned about a mortgage then saving a significant deposit is important.

Psykicpup

I need to up my credit rating because we want to buy our council house - it would be stupid not to really - loads of profit- & becauce I would like to be able to open a current account else where - thinking of recclaiming bank charges & also for a completely seperate savings account. I want idealy to be able to move my savings around to attract the best deals- at the moment I cant save cos even my own bank wont start a new account for me!

CLAPTON

assuming you are on the electoral roll you should be able to open a basic bank a/c. although it wont give you a cheque book or overdraft facility it will allow you to set up DDs and standing orders and you can get a cash card although not a full debit card.
I can't see any reason why you can't open savings a/cs.

Psykicpup

I do actually have a bank account with DD & all that, but I also have no formal ID -no driving license no passport- & a lot of companies will only give 'basic' accounts to those on benfits - having only become debt-free this month (not inc Provi) I dont want trust myself to a 'normal' current account just yet. I also dont have the kind of money some saving account require to open - Thats why I'm here really, I guess, advice & tips on who would be suitable to be to apply to. I really cant risk applying to loads of banks/credit cards/building societies & what that can do to your credit rating.

CLAPTON

basic a/c are available to people without a credit record check, but they do check electoral roll, and so are suitable for people with poor credit records.
as you have a bank account already you have one piece of formal id already...do you have utilities in your name?
Many people recommend NatWest step account, Nationwide or Coop
for basic bank account.
there are numerous excellent savings a/c you can open with as little as a single pound. e.g. if you had a nationwide basic a/c you could open an esaver a/c with just £1 with a saving rate of 4.8% (not the best but OK). You would have to check what id they require.

Psykicpup

Thanks that a great help have noted & will look into when I next go into town prob next weekend!