Now Debt Free - Looking to Rebuild

HestonJames

Hello Everyone,

Well the good news is that as of last month I am now officially 'debt free', I have £0 outstanding credit in my name.

The next step in my project is to begin slowly rebuilding the damage which has been done, and I'm looking for some advice on the best approach to take.

I've done just about as much as I can about my existing record I believe, paid my old debts off, made sure any mistakes have been corrected, added myself to the electoral roll.

Is there anything else I should do with respect to that?

Assuming there isn't, then the next step will be to start building a record of positive credit, which I pay off on time each month etc.

I recently applied for a Vanquis Visa credit card to do this, supplied them with all the appropriate ID etc but they have still declined my application, without giving any clear explanation.

I'd appreciate any advice you guys can offer.

Thanks.

Heston

HestonJames

Another quick question which springs to mind:

I have several accounts on my record which are listed as 'settled' where I agreed a lower settlement fee than the debt which I owed. Could this be negatively effecting me? Should I be looking to 'satisfy' those debts by paying the full balance if I can afford to?

Thanks,

Heston

DebtFree2012

Congratulations

Karmacat

Congratulations!

Just thinking about a credit card to pay off in full, so you can build a record of positive credit .... its a great idea, as long as you *do* pay it off each month. Do you have the strength to do that?

If so, and Vanquis won't help you, what about the bank where you have your current account? If they still won't, then you might look at your *own* bank's prepaid card, use it for 6 months, and go back again and ask them for a credit card - specify a low limit, if you like, and just use it at the supermarket.... can't think what else to advise, sorry.

rdchick

perhaps wait a little while, monitor your credit report and then try and rebuild when all is safe to do so

Tixy

Hi

How recent did you put yourself on the electoral roll? if recent have you checked its correctly showing on your credit files yet? It can take longer than people sometimes expect. ie if you register after approx the 10th of a month you won't be on the e/r until the 1st of the second month after (ie 7weeks), and it can then take a further 4-6weeks for your credit file to be updated. So someone who registered today would appear on the E/R from 1 august and perhaps not show on their credit files until September sometime.

What else is on your file? how recent were any defaults you had? did you have any CCJs? how recent? Are you employed?

As vanquis have turned you down (and assuming the electoral roll was correct at the point you applied) then you could possibly try a catalogue account or if not then you'll have to go with a credit builder card which are detailed as the last resort options on this link - 'Bad Credit' Credit Cards: Use them to rebuild credit rating

Dead_Eye_Dan

British Gas told me that each time I make a payment by DD for my gas it improves my credit score.

Maybe you could do the same for water, elec and gas - monthly Direct debits if you are not already?

Any other DD's will prob help it too.

mummum2

Nothing to add really! just wanted to say congratulations and here to a wonderful and happy debt free life! :beer: that's all our aim and I for one can't wait to hit that date, another 2.5 years to go God willing!

MM2

HestonJames

Hi Everyone,

Thanks so much for the help and advice.

@Karmacat - A credit card seems to be good advice, lots of people suggesting that in blogs and suchlike. I'm in a perfectly comfortable position financially so wont have a problem paying it off. Using it for small purchases such as food and petrol was the plan.

@rdchick - Perhaps you're right, time may be of benefit.

@Tixy - The electoral roll information was showing, I kept an eye on it to make sure it was in place before applying. I have no CCJ's or Bankruptcy, and all the defaults on my account were from several years ago. I am self employed and have a proven income of around £30k all I wanted as a £250 credit limit too, feel quite surprised that they didn't accept my application. Although, they did say I'm able to ask them to reconsider if I think they've missed something.

@Dead_Eye_Dan - That's interesting, I wasn't aware that things like would help? I don't see any of my other DD's such as car insurance listed on my credit report?

Thanks all.

Heston

HestonJames

@mummum2 thanks! I think I was quite fortunate in that my debts weren't that great which meant paying them off once back earning again wasn't too big a challenge :-) Good luck!

Tixy

Only some utility providers report to the credit reference agencies. British gas certainly does for new accounts, I don't think any of the water companies report routinely but some of the other elec companies do.

You cannot make them report though, some do and some don't (it also depends on how long ago you set up an account with them as with old accounts they probably cannot as they didn't used to seek permission to report.