How long till I have a good credit rating?

nicjane113

Hi everyone,

When I was 18 I got a credit card and ran up around £2000 on it which I couldn't afford to pay back straight away. I was always paying more than the minimum payment and after about 2 or 3 years I managed to pay it all back.

I'm now 22 and have 2 credit cards that I use and always pay off every month.

I also have accounts with both the Next Directory and the Very catalogue. If I buy anything I always pay it back once my statement comes in.

I have an overdraft of £400 on my bank account with A&L that I am currently using but will be out of by the end of this month.

I am guessing I don't have the best credit rating. Now that I'm on track with my finances, how long does it take until my credit rating will be good?

YorkshireBoy

With 3 credit cards, 2 catalogue accounts, and an overdraft, I'd say your credit history would be as good as it can be after only 4 years...providing there have been no late payments or unauthorised overdraft use?

nicjane113

I think I have had one late payment when my wages didn't go into my bank account but that would be about 2 years ago now.

I have noticed my credit limits have been getting increased when my statements come in so that can only be a good thing?

angelachristen

I have a Capital One card and never had any problems with them. If you pay on time and stay under your credit limit then you should be fine.

blueberrypie

Instead of assuming things, why not actually go and *look* at your credit record? There's information on how to do this at http://www.moneysavingexpert.com/loans/credit-rating-credit-score#files

Just don't be suckered into paying for the "score" - it's meaningless.

hedgehopper_2

You don't sound like someone with a bad credit rating to me; on the contrary you have shown that you are OK to borrow and pay back. If you're being refused credit I'd guess it could be (a) age-related (b) employment situation related or most likely (c) due to a recent move or not having lived somewhere for a long time. Do any of these apply?

nicjane113

Thanks everyone,

I thought because I had alot of money outstanding on my credit card for about 2 or 3 years it would have affected it, but that is all paid off now and I pay all of my bill every month now so hopefully that is showing I am a good borrower.

I haven't actually applied for credit recently as I didn't think I would have a good score.

Since I was 17 I have been in full time employment, with a bank for 2 years and now with an insurance brokers so I have always been working.

I have lived at the same address for almost 3 years then my previous address for about 3 or 4 years.