Poor credit rating, isolated incident 3 years ago

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Hi all

An issue I had with nationwide (I had no money and when I tried to make a paypal payment natonwide said it was unpaid DD so charged £30 plus £20 'cos I didnt have an overdraft)

This snowballed for 6/7 months and has since had an affect on the credit I can get.

I am close to my limit on CC 1. And have £230 to pay on argos card. £350 overdraft and am in it every month (im paying for them to "move" the £0 mark if that makes sense) and have a DFS sofa with £1200 to pay starting june for 3 years 0%

I have researched on how to improve my score, I was just turned down by sainsburys and zopa for a loan for wedding and honeymoon, so my goal is to finance this without increasing debt (family will help :embarasse) and also to bring my debt to zero.

The question I have, is according to creditexpert I am using 75% of my available credit.

Would my best bet,obviously clearing most expensive debt first, be to reduce my credit limits? Does this benefit my score? I know if cards are not used its best to close them, but for example after argos has been paid would reducing my limit from £600 to <£300 have a positive affect on my rating. Same for CC and overdraft?

TIA for any help

Spike
Baby daughter born 13.2.10 :j 6lb 11.5oz

Comments

  • spike2012
    spike2012 Posts: 431 Forumite
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    ....:eek:

    CC1 is 3 years old
    Argos card is 2 years old
    DFS started June last year

    and I applied for the loan (one after the other due to decision) on Saturday.

    I am not "hell bent" on paying for the wedding on credit, as I have already paid £1000+ off on rings, honemoon deposit, dress deposit

    etc etc
    Baby daughter born 13.2.10 :j 6lb 11.5oz
  • Blitz01
    Blitz01 Posts: 249 Forumite
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    I was just turned down by sainsburys and zopa for a loan for wedding and honeymoon, so my goal is to finance this without increasing debt
    This first thing you must realise, is that you simply cannot afford to get married.
    Taking a loan for this purpose is no way to start married life, especially when your financial situation is as poor as yours.

    You already say you are in your OD every month. You need to see that as a sign that you outgoings are in excess of your income, and you cannot afford more debt, even of someone was prepared to offer you more finance.
  • spike2012
    spike2012 Posts: 431 Forumite
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    Blitz01 wrote: »
    This first thing you must realise, is that you simply cannot afford to get married.
    Taking a loan for this purpose is no way to start married life, especially when your financial situation is as poor as yours.

    You already say you are in your OD every month. You need to see that as a sign that you outgoings are in excess of your income, and you cannot afford more debt, even of someone was prepared to offer you more finance.

    Thanks for the reply, our outgoings are less than income, but the money that is left over is being used to pay off what we already have spent so things are being reduced, slowly though :o
    Baby daughter born 13.2.10 :j 6lb 11.5oz
  • chattychappy
    chattychappy Posts: 7,302 Forumite
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    Your sig talks of your just having a baby daughter and also a Vegas honeymoon. I think you have to be very realistic about your budgets.

    In my sister's case she scrubbed the honeymoon in circumstances that sound similar to yours. (Actually did it about 5 years later!)

    I would NOT close accounts or reduce credit limits. Well, they may do this for you, but else at 75% you're already looking distressed.
  • Blitz01
    Blitz01 Posts: 249 Forumite
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    spike2012 wrote: »
    Thanks for the reply, our outgoings are less than income, but the money that is left over is being used to pay off what we already have spent so things are being reduced, slowly though :o
    But you say you are in your OD every month.
    It clearly isn't if your income is higher than outgoings??
  • opinions4u
    opinions4u Posts: 19,411 Forumite
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    The question I have, is according to creditexpert I am using 75% of my available credit
    In that case, ask Creditexpert to lend you the money.

    Or, perhaps, stop paying them and use the money saved to reduce other debts.
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