Improving My Credit Score

Wood.Justin

Hi Guys,

Just a quick question in relation to a recent credit score I received. I was shocked and horrified to see I was in the "poor" category, based on the balances of my outstanding credit and such.

Now, I have a credit card with a small available credit of £500. Should I use this and buy small things that I normally would with cash and instantly repay as soon as I can clearing the balance in full. How significantly would this improve my score over a 6 month period? I don't want to apply for anymore credit and I have this one just sitting around wtih £0.00 balance.

Do you think this is a wise idea? I am clearing my outstanding debts in tandom but I'm just looking at other ways to move things along.

Many thanks folks.

- Justin

CLAPTON

income?
debts?
electoral roll?
missed or late payments?

Wood.Justin

£18.5k = !!!!!!
£7k on Credit Cards, £5k on Loans = careless past
Yes
No never ever

CLAPTON

your low score is related to having 12k of debt on an income of 18.5k

regular use of an additional credit card is unlikely to make any difference

BugsyBrowne

CLAPTON wrote: »

your low score is related to having 12k of debt on an income of 18.5k

regular use of an additional credit card is unlikely to make any difference

Its nothing to do with 12k of debt and an income of 18.5k why he is in the poor category,as you know as well as I do that Experian do not know his wage.

Many people have a 70% debt to income ratio who are very high credit scorers.
Think you will find their is more to the OP's credit report then he is letting on.

intranicity

How many credit searches have you done recently, that will also kill your credit score if you've gone mad, also the limit's on your credit cards, are they near the maximum, ie, you have available credit limits of £12.5k, but you are using £12K of it will also hit you.

Reduce what you owe and don't apply for more and you're credit score should improve

Wood.Justin

star-fire wrote: »

Its nothing to do with 12k of debt and an income of 18.5k why he is in the poor category,as you know as well as I do that Experian do not know his wage.

Many people have a 70% debt to income ratio who are very high credit scorers.
Think you will find their is more to the OP's credit report then he is letting on.

Thank you, my income isn't great. It used to be much better but unfortunately due to circumstance had to take a lower paid job.

Yes, I have made a few searches actually. I must admit I didn't state that at first. I have also within the last 7 months changed addresses, but I am now on the electoral roll at the present address. I suppose these are both contributing factors, in terms of my score.

I know I need to repay what I owe, this has dauned upon me quite dramatically recently. I will aim to clear the lot by the end of 2012. My loans for sure will be clear as I make the last payment in Sept-12. I'm just looking at ways of contributing to a better rating as well as repaying. But if it's not gonna be worthwhile then I won't bother, ya know?!

I have £14,500 amount of credit available to me on cards and only "using" £7k of this, the balances are quite high but nowhere near the limit(s).

Cheers so far guys, I guess you can call this a lightbulb moment in some respects.

- Justin

BugsyBrowne

Wood.Justin wrote: »

Thank you, my income isn't great. It used to be much better but unfortunately due to circumstance had to take a lower paid job.

Yes, I have made a few searches actually. I must admit I didn't state that at first. I have also within the last 7 months changed addresses, but I am now on the electoral roll at the present address. I suppose these are both contributing factors, in terms of my score.

I know I need to repay what I owe, this has dauned upon me quite dramatically recently. I will aim to clear the lot by the end of 2012. My loans for sure will be clear as I make the last payment in Sept-12. I'm just looking at ways of contributing to a better rating as well as repaying. But if it's not gonna be worthwhile then I won't bother, ya know?!

I have £14,500 amount of credit available to me on cards and only "using" £7k of this, the balances are quite high but nowhere near the limit(s).

Cheers so far guys, I guess you can call this a lightbulb moment in some respects.

- Justin

Well apart from you moving recently and making a few applications for credit everything else seems fine with your credit,you have no missed//late payments on the electoral role and in control on your finances,I would say to many applications and stability in your address would have an impact.
Also remember Experian gave you that score not a lender, so please don't go by that as its a load of old sh*t.

Stop applications for 6 months and you will also then have over a year at your address this can only have positives.

Wood.Justin

Thanks very much, I'll get there.

JohalaReewi

You don't have a single credit score. Each lender will score you differently so you have really got lots of credit scores all over the place. Added to the mix are credit reference agencies (like Experian, Equifax, etc.) who although they are not lenders, have no qualms about charging you for a so called credit score. These scores are more a reflection of your credit history report rather than an actual credit score so don't waste lots of your hard earned cash on these. However, the advice offered above should see your real credit scores improve.

Also check out Martin's article...
http://www.moneysavingexpert.com/loans/credit-rating-credit-score