Improving your credit report

Laurabeth38

My boyfriend has nearly managed to pay off all of his debts (Just £400 left! :beer:) and was wondering now how he is supposed to go about improving his credit report as we don't know where to start?

Thanks

laura2481

If he's paid off all his debts then it's probably reasonably good. The best way is to have a little bit of credit (but not much) and pay it off regularly and with no late or missed payments for at least 6 months.

sunny-2009

I think if he hasnt missed any payments he should be fine. If he has any unused accounts maybe close them? There are pros and cons to clsoing accounts but its personal choice. Definately keep a credit card and pay it off every month.

peainapod

It should be good if he's paid all his debts on time, however if there's a default on his credit rating for example, you can't get rid of that for 6 years no matter how responsible he is with money now.
Get a credit card and spend 20%-30% of the credit on it every month and make sure to pay it off in full.
Make sure he's on the electoral roll.
Make sure bills are paid on time. Direct debit is a good way, bills can have impact on your credit rating.
Try not to move house too much, this has an affect.
Good luck clearing the last of it !

MissShoes

Get a card with a small limit, pay it off in full each month to show he's a good 'risk' and to establish a track record of paying back, on time and in full.

MissShoes

oh and register on the electoral roll!

Trajal

Hey there,

My top 10 points for rebuilding credit, which I hope are of some use:

1. Don't pay anyone for a credit score. Each lender uses its own scorecard, the numbers that you are given by certain agency services are little more than a guess as to how you will be seen generally, and are a waste of money.

2. Do get a copy of your (free) credit report in a couple of months. This way you can check that your situation is where it should be and ensure that those you paid off have reported correctly to the agencies.

3. Don't get into trouble again! Credit rebuilding is a long, slow and patient process which won't benefit from any kind of instant fix. Anyone who claims they can rebuild your credit rating instantly is a big smell liar.

4. Be aware that patience really is the key virtue for credit records. Small amounts of credit, carefully and responsibly managed over time are the way to do it, it's a long haul thing.

5. You can get paid for seeing your credit report through various offers and links.

6. One good way to get some reporting done is to have things like catelogues and order socks interest free. Pay £1.20 a week or whatever it is, and each payment will be reported to the Credit Reference Agency, building up a profile for you. But don't go mad.

7. Another way is to get a credit card with a low limit. If they give you a high limit, call them up and ask them to reduce it. It's not worth the temptation. Buy your groceries with your credit card every week, and when you have finished putting everything into the cupboard, get online and pay the amount into your credit card. This will show that you use credit, but that you do so responsibly.

8. As mentioned above, ensure that you are on the electoral register.

9. Once you have a couple of credit lines, stop applying. Do not apply for anything for at least a year, show that you can responsibly manage the credit you have. If you are in the subprime credit areas, make use of it but don't fall foul of interest, pay it all off straight away, wait 12 months and then apply for some better cards.

10. Remember that each application you make, whilst perhaps not damaging your credit score as such, might nonetheless look bad on a credit file and make people think you are desperate. You don't want to look desperate.

MissShoes

Trajal wrote: »

Hey there,

My top 10 points for rebuilding credit, which I hope are of some use:

1. Don't pay anyone for a credit score. Each lender uses its own scorecard, the numbers that you are given by certain agency services are little more than a guess as to how you will be seen generally, and are a waste of money.

2. Do get a copy of your (free) credit report in a couple of months. This way you can check that your situation is where it should be and ensure that those you paid off have reported correctly to the agencies.

3. Don't get into trouble again! Credit rebuilding is a long, slow and patient process which won't benefit from any kind of instant fix. Anyone who claims they can rebuild your credit rating instantly is a big smell liar.

4. Be aware that patience really is the key virtue for credit records. Small amounts of credit, carefully and responsibly managed over time are the way to do it, it's a long haul thing.

5. You can get paid for seeing your credit report through various offers and links.

6. One good way to get some reporting done is to have things like catelogues and order socks interest free. Pay £1.20 a week or whatever it is, and each payment will be reported to the Credit Reference Agency, building up a profile for you. But don't go mad.

7. Another way is to get a credit card with a low limit. If they give you a high limit, call them up and ask them to reduce it. It's not worth the temptation. Buy your groceries with your credit card every week, and when you have finished putting everything into the cupboard, get online and pay the amount into your credit card. This will show that you use credit, but that you do so responsibly.

8. As mentioned above, ensure that you are on the electoral register.

9. Once you have a couple of credit lines, stop applying. Do not apply for anything for at least a year, show that you can responsibly manage the credit you have. If you are in the subprime credit areas, make use of it but don't fall foul of interest, pay it all off straight away, wait 12 months and then apply for some better cards.

10. Remember that each application you make, whilst perhaps not damaging your credit score as such, might nonetheless look bad on a credit file and make people think you are desperate. You don't want to look desperate.

This is really useful- thanks

FredWhispers

This suggest that when the debt is repaid your boyfriend is going to apply for credit. BE CAREFUL!! That is the start of the slippery slide back into debt.

Very easy to borrow, tougher paying it back. As he found out last time.

A life without debt is a good life.

Fred