Re-building your credit rating

katie_belle

Hello
I used to be in quite a lot of debt. Slowly but surely, I've agreed repayment plans with all my creditors and should be debt free in 3 years.

I was wondering what will happen to my credit rating as I've heard it can take up to six years once you've repaid all your debt before your credit score goes back up again.

Once I've repaid everything, do I have any rights to ask my creditors to contact credit referencing agencies to advise I've paid in full, or do I need to wait it out?

Any advice would be much appreciated.

Thanks!

Katie

Skint_but_Optimistic

Have you had a look at your credit file? You can look at them for free and it is a real eye opener. Mine was awful and is getting gradually a bit better. Its ncie to see whats on there, and you can challenge things if necessary

katie_belle

Hey

Yeah I had a look a couple of weeks ago and it scared me senseless.
I've been repaying about £15000 of debt for 6 months, and haven't made any new applications for credit since then, but my credit file hasn't budged one bit. I'm guess it's a "sit and wait" situations

Thanks

Katie

Skint_but_Optimistic

Theres some advice on here about rebuilding credit ratings, taking out a credit card and paying it every month, maintaining monthly payments, checking youre on the electoral roll, but most advice seems to say it takes 6 months to make a real difference... its very frustrating when you are doing loads of work and it doesnt seem to be helping!

FOURCANDLES_2

I can understand people wanting to rebuild there credit file but my friend who I am helping had a lot of debt 90% fell off his file in the last month or so and the other is due off end of june and early next year . I have told him correct in my opinion not to build his credit score up through fresh debt why after all people in debt have been through do they want to build more debt??. My advise was your bank account shows, your on the electrol role and your file is clean and you are debt free which is the aim of the game. My advise also is the old adage never be a borrower or lender be , and save a percentage of your wage every month you cant go wrong OK if you are after a mortgage you may have a point but cars, holidays save until you can pay cash is king.

platelicker

@Fourcandles, that makes a lot of sense.

However, having no credit can sometimes be worse than having bad credit, no?

Skint_but_Optimistic

True fourcandles, I myself have a credit card just to rebuild my credit file, its not building debt, I pay it off IN FULL every month. its just collecting ticks.