Credit file clear next week.

Richey_2

I hope this is in the right place, it's about being almost debt free, like I want to be, but also about repairing credit.

I had a few CC defaults several years ago. I paid them on agreements for a while, then after getting married my wife took out a loan in her name to pay off all my debts at reduced amounts. We balance our household money so that I pay the loan. So I have technically been completely debt free for almost 6 years, and we have never missed a payment on the loan or mortgage. So, working towards things being perfect.

I just realised on experian and equifax that next week it will be 6 years since my last CC went into default, and so it will be removed from my credit file. All that will remain is the mortgage, current account and mobile phone, all of which have been conducted perfectly.

How do I go about rebuilding myself - is it even necessary? I thought about applying for a credit card and just using it for supermarket shopping or fuel or something, then paying it off in full each month. I don't need one, but I want to repair my credit file to look good for when we want to move house and remortgage. Or will I already look good?

Also, will it be the case that my former creditors will still have records - are they not stuck to the 6 year rule like the credit file? If so, do I need to figure out which companies are completely unrelated to the former creditors? They were Halifax, Capital One, Citicard and Barclaycard. I have had a current account with Yorkshire Bank for years, who I never had any problems with - would they be aware of any of the others?

Anyway... I fear I'm rambling on too long when you probably get the gist of my question. Should I get a credit card? Do I need to? Whats the best way to do it?

p.s. I'm much better with my money these days, a real money saving expert, so I'm not afraid of repeating my mistakes!

edinburgher

If you are listed on the mortgage and have your own current accounts and mobile phone accounts, there wouldn't seem to be much need for you to get a credit card (what else do you need debt for?) Your wife is obviously good for loans etc. - sure you will be too, with a house and a good credit history on your current account etc.

The defaults will drop off entirely, there will be no record of your previous misdemeanours that can be held against you!

You might want to think about using a cashback credit card or the like to make a few pounds a year, but it wouldn't seem to be all that profitable unless you do *a lot* of spending.

Congrats on reaching your new beginning

bottleofred

Hi Richie,

Get a "bad credit" credit card and use it to buy small items and then settle it each month in full to avoid paying the high interest. Make sure you're on the electoral role etc and just keep doing what you have been. Well done on becoming debt free.

Good luck

Red

Gordon_Hose

Bear in mind it can take a couple of weeks for the Credit File to update.

Richey_2

Thanks for the advice. I never thought about getting a credit card to make money off cashback etc - that sounds like my kinda thing. Always trying to make a little extra. Actually, I may try a supermarket one to get extra points on fuel purchases.

Just to reiterate one of my questions - is it necessary to have a credit card to improve my credit file? i.e. will I look better in future to have had one that has been conducted well, as opposed to not having had one at all, making me a little unknown in my borrowing abilities? (Other than mortgage of course.) Not sure about getting one of the "bad" credit cards - won't having a vanquis or something on my credit file raise questions to future lenders?

Thanks for the congrats - it does feel good. Still got 3 and half years on the loan, but its a "good debt" - paying things off fairly and properly, and affordably.

MoneyWasting_Expert

I would imagine your credit file is in good shape. I think using a CC will only benefit this more. On top of that it is a different kind of borrowing and using it for everyday shopping and paying it off each month is only going to improve your CF and give you more options of credit in the future.

Once that Default drops off your CF will look great in the present. You don't have to worry so much on looking for a sub-prime card you may also be eligible for some of the great deals out there. Word of warning though it may take a while before the default drops off, I would give it another month.