Credit scoring

secdean

Hi all first post so go easy on me.
Iv been turned down for car finance, my credit score is 824 (yeah I know its not worth the paper). Im on top of my credit file info wise, Iv just updated my electrol roll as being ex army I was a mail voter. Iv had £1500 from a barcleys finance partner (laptop), and paid it off years ago all on time (2008).
My car is 14 years old and dangerous, my MOT is due in aurgest and Its gona cost a hell of a lot to put right. I need a new car before then, How can I rise my attractiveness to finance companies?

Is getting small items on store cards be a good idea? and paying them off within a couple months?

Iv got a stable job, its protected, Iv only been in it 4 months, I know this is an issue, but Iv worked everyday of my life since leaving college seven years ago.
Cheers all

intranicity

Do you have any credit cards mate? Easiest way of building your credit scores is by having credit accounts like mobile phone contracts, credit/store cards and bank accounts. Making regular on time payments will over time raise your credit score.

If you haven't had/got a credit card, companies like Vanquis are easier to get a card from, but interest rates are really high, so make sure you pay the balance off in full every month. Bare in mind that credit searches can have a negative impact on your credit score, so use something like this https://www.moneysupermarket.com/credit-cards/smart-search/?Source=MSE1 to help you see who is likely to accept you.

Suggestions to get you out of your hole are hard without knowing all your circumstances, but have you approached your bank directly for a loan, they know you best and might be your first port of call, if things are really bad, ABF might be able to help?

Good luck

secdean

Hi bud,
Iv never considered getting a cedit card, Iv just got one debit card and never intentionally spent money Iv never had. We are looking at getting a house in around xmas time, so perhaps I should buy small houshold things (tv, kettel, microwave etc) on credit, pay it off every month, then it bumps my rating and we have things to move in with?
Id feel guilty useing the ABF, iv no problem paying things back, just cant get the finance lol.

intranicity

secdean wrote: »

Hi bud,
Iv never considered getting a cedit card, Iv just got one debit card and never intentionally spent money Iv never had. We are looking at getting a house in around xmas time, so perhaps I should buy small houshold things (tv, kettel, microwave etc) on credit, pay it off every month, then it bumps my rating and we have things to move in with?
Id feel guilty useing the ABF, iv no problem paying things back, just cant get the finance lol.

Looks like you manage your finances well, but not having credit, makes it difficult to get credit!

Look at the link above, get yourself a credit card, if it is that you have to get one from Vanquis or one of the other sub prime lenders, interest rates are high and credit limits small, but make no difference if you pay off in full and it will make a big difference to your credit score.

As for feeling guilty mate, DON'T, I know where you're coming from, but I had too much pride and got in a mess! ABF, might help, or they might not, but either way, they are there for you, you've earned the right to ask....

secdean

Would a store card help also?

intranicity

Yes, but I think a credit card if possible would help you more. In the end it's showing that you can be trusted to have credit and not abuse it that you need to show, things like salary, amount of credit you are using/have, length of time at address, electoral role and not doubts may other things are considered, but having little or no credit definitely goes against you.

paddyrg

FWIW years ago I needed a credit card for convenience going overseas (for medical emergencies, etc - we took travellers cheques for spending), and despite at the time earning £36k/year and having wodges of savings (oh I dream of those days...) I couldn't get a card as I had no credit history! I ended up taking an unnecessary loan I didn't need from the bank for a grand, paying it back over a year, but it meant I had a useful credit file!

I've got those cards now, pay them off in full instead of using a debit card, and let the airmiles slowly add up - despite earning a fraction of what I used to earn I have tens of thousands of pounds of available credit if I need it.

I only mention this as not getting a loan/cards approval is not a refelction on how well you manage your money, it is all about how well you have managed past credit! I hope that's reassuring :-)

secdean

Cheers all Iv applied for vanquis, they have a minium start off amount of 150 pounds, hopfully il get it.

intranicity

I hope you are successful, I'm sure you will be, good luck and let us know mate

Tixy

Once you have your card -you don't need to buy things for a house etc that you don't need yet. Just put some of your normal monthly spend on the card and then pay it off the next month so you are not paying interest. Eg you could put your petrol costs on it or your food shopping etc.

secdean

Tixy wrote: »

Once you have your card -you don't need to buy things for a house etc that you don't need yet. Just put some of your normal monthly spend on the card and then pay it off the next month so you are not paying interest. Eg you could put your petrol costs on it or your food shopping etc.

haha thanks a cracking idea cheers!