How to sensibly and realisticly improve credit?

lolly3fh

A few years ago I was quite irresponsible when it came to money, I missed payments frequently.

I'm now very organised, and have a monthly budget spreadsheet, I have a catalogue, but I pay this off every month and don't miss payments. I've also just paid off a loan.

I've recently been issued with a Default, from a catalogue from years ago, which, again very irresponsibly, I completely forgot I even had, therefore didn't pay it. I've set a payment plan with them, and have managed to pay nearly half of it off.

ow long will the default be on my credit report? Can I ask for it to be removed when I have paid off the full balance?

I'm also interested in ways to improve my credit rating, is there anything I can do? I know it won't be instant, and that it will be a work in progress, but I'd someday like to be able to think about applying for a mortgage!

I'm reluctant to get a credit card, I don't want them temptation / risk but if it's the only way, I guess I'll just buy petrol once a month, pay it off in full each month, and then give it to my partner to keep until the next month.

What a the prepaid credit cards like? Do they do any good?

Advice / comments welcome!

chopper_99

The default will stay on your file for 6 years from the date it was issued. As for improving your credit history just make sure you're on the electoral roll, keep paying your catalogue off on time and continue to clear the defaulted catalogue balance, even though the default will remain on your file it will still look better for being payed off.

On top of that you can apply for one of the high APR credit cards that are willing to accept people with defaults etc on their file. But it is very important that you only use them for small amounts each month and you pay the balance in full every month. Otherwise the interest rates they charge are very high.

Tixy

A default notice will last for 6years from the date it was entered on your credit file. Once the debt is paid it will be marked as a settled default which is a little bit better on your credit report. But realistically until the default is over 3years old there is likely to be very little you can do to improve your rating. Once its 4-5years old then you need to start gradually trying to rebuild your credit by showing you can handle credit responsibly -eg by using and repaying a card or catalogue each month. For this you could use a subprime card, but I wouldn't think it was worthwhile for some years yet.

annibee

You could get a cheap contract phone? Thats how I started building after a default. Just make sure you place a lock to prevent you going over your call allowance (pretty sure you can get £15 per month ones now)

lolly3fh

Hi, I actually already have a cheap sim only contract with T-Mobile, and I agree, I think this helps.

The only thing now marring my report is my default. However, I just applied for a Capital One credit card... and was accepted. The plan is, to use it ONCE per month, maybe on £10 worth of petrol, and pay it off straight away.

So, I continue to pay off my catalogue, my phone and my credit card, and gradually improve my record. Once I've settled the default, I'm going to write to them, on the off chance they will remove it (doesn't always work apparently but doesn't hurt to try).

It'll take a while, but I'm feeling good!!!

annibee

Just for a little bit o light I have a Default on my account and last year I got both a Mortgage and a 10,000 Loan...so in my experience the defaults doesnt mean youll never get anywhere!