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Challenge for 2007: Get a better credit rating
chelseablue
Posts: 3,303 Forumite
Hi All
My oh needs help!
We are looking to obtain a mortgage in about a years time, can a persons credit score go from bad to good in 12 months? And if it can be done, how?
My credit rating is good (over 800 out of 1000) but his credit rating is not so good.
He has never had a loan, credit card, been declared bankrupt or ever had a CCJ BUT has been very overdrawn in the past. Currently his balance in his current account is -£100 (this is an unauthorised overdraft). In the past his balance has been -£900! :eek:
He has now had a lightbulb moment and reliases he needs to sort himself out in order to obtain a mortgage. What can he do?
My thoughts are:
1. Close his current account and start afresh with a different bank (should this be a joint account with me or stay on his own? worried about him bringing my score down!)
Is it better to try and obtain a full current account or apply for a basic bank account?
2. Get a credit card for people with adverse credit. Eg Vanquis (sp) Capital One Classic or Barclay Card Initial. Buy something small once a month and pay the balance in full. Im thinking that this will help build a good history as he will be not be missing payments. Or will having a card futher damage his rating?
As you can probably tell I am worried about this!
Id appreciate any help or advice
Sorry for the long post
x
My oh needs help!
We are looking to obtain a mortgage in about a years time, can a persons credit score go from bad to good in 12 months? And if it can be done, how?
My credit rating is good (over 800 out of 1000) but his credit rating is not so good.
He has never had a loan, credit card, been declared bankrupt or ever had a CCJ BUT has been very overdrawn in the past. Currently his balance in his current account is -£100 (this is an unauthorised overdraft). In the past his balance has been -£900! :eek:
He has now had a lightbulb moment and reliases he needs to sort himself out in order to obtain a mortgage. What can he do?
My thoughts are:
1. Close his current account and start afresh with a different bank (should this be a joint account with me or stay on his own? worried about him bringing my score down!)
Is it better to try and obtain a full current account or apply for a basic bank account?
2. Get a credit card for people with adverse credit. Eg Vanquis (sp) Capital One Classic or Barclay Card Initial. Buy something small once a month and pay the balance in full. Im thinking that this will help build a good history as he will be not be missing payments. Or will having a card futher damage his rating?
As you can probably tell I am worried about this!
Id appreciate any help or advice
Sorry for the long post
x
0
Comments
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I suggest keeping the existing bank account, but running it properly. If he operates a basic account without an overdraft facility then that will not do anything to demonstrate that he can handle credit properly. However, if he runs an account that has an overdraft facility but always remains within the agreed limit, that will help. Besides which, a long-standing relationship with a bank helps improve your credit-worthiness.
He should certainly obtain any credit card that will have him (he might do better than Vanquis) but should certainly set up a direct debit to pay off the entire balance each month.
Don't open a joint account with him just yet: in all sorts of ways that would be asking for trouble.0
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