Credit Repair - Will buying a sofa help?!

ITtim

We're just about to embark on the long process of repairing my wifes credit report, we've signed her up to a Natwest Step account and I'm keen to get her credit report looking better.

Now, obviously we don't want to take out masses of credit but we do need a new sofa. What with 0% credit deals with SCS and DFS I wondered whether this would be an effective way of getting some good scores on her report.

Is this worth doing?

bargainbetty

Do you really need a 'new' sofa? If not, you are spending hundreds of pounds for something you don't need.

You could consider asking for a small limit card, using it to pay for one of your main shopping trips per month, and paying it off in full so you don't incur interest. You are trying to rebuilt a credit report, not create more debt. Look at getting a sofa from a second hand place, or saving up for it, until the credit score is up a bit.

Good luck

ITtim

Thanks Betty,

We are currently using a hand me down sofa and it has seen better days. Afordability isn't really the issue but since we would be looking into replacing our sofas I thought maybe a credit agreement for 10-20 pound a month would maybe be a plus on my wifes credit report. I'm reluctant to apply for a credit card and i'm not sure she'd get one.

its not so much about the new sofa as getting a credit agreement and getting it paid off. (we wouldn't pay for the entire duration for example and would pay it off early.)

sofababe

ITtim wrote: »

We're just about to embark on the long process of repairing my wifes credit report, we've signed her up to a Natwest Step account and I'm keen to get her credit report looking better.

Now, obviously we don't want to take out masses of credit but we do need a new sofa. What with 0% credit deals with SCS and DFS I wondered whether this would be an effective way of getting some good scores on her report.

Is this worth doing?

If her credit file is in need of repair she would be unlikely to pass the credit check for hundreds of pounds at 0% anyway.
I would echo the previous response, get a low limit (usually high interest) card and pay it off every month. The horrendous interest rate on those cards (40%+ :eek:) should be enough to stop you being tempted to use it for anything else!!

ITtim

If we got one of those cards would it have to be used in order to improve the credit score or would simply having it and not using it help?

Tixy

You would need to use it to show your wife can now handle credit responsibly- but as its likely to be a high apr so the best thing is to spend a small amount on it each month (say a weeks groceries or a tank of petrol) and then ensure you pay it in full the next month, so you don't pay interest - have a read of this article for ideas on which card providers may accept her - http://www.moneysavingexpert.com/cards/bad-credit-credit-cards

ITtim

Excellent, Thank you.

now

ITtim wrote: »

Thanks Betty,

We are currently using a hand me down sofa and it has seen better days. Afordability isn't really the issue but since we would be looking into replacing our sofas I thought maybe a credit agreement for 10-20 pound a month would maybe be a plus on my wifes credit report. I'm reluctant to apply for a credit card and i'm not sure she'd get one.

its not so much about the new sofa as getting a credit agreement and getting it paid off. (we wouldn't pay for the entire duration for example and would pay it off early.)

Do you really want to borrow? I am about to repair my credit file (it will take me five years as AD BR today) I will never borrow again as I find it so mich better to pay for everything I want cash.