Your Credit Rating: How it works and How to improve it Discussion Area

olliesmum

Hi, this is my first post, so I've quite probably posted it in the wrong place - sorry if I have. My problem is that a couple of months ago, my baby son was seriously ill in hospital and I forgot to pay my credit card on time. I did pay it but it was late by about a week. Our old mortgage deal is up in November, and now I'm really worried that I wont be able to get a new deal with this late payment on my record. Will this late payment affect my credit rating that much? I don't have any other blips on my credit rating other than a few times I've gone over my overdraft limit and according to the online calculators we have enough income to cover the size of mortgage that we want. Do I need to worry about this or am I getting myself in a state over nothing? Sorry I know lots of people are much worse off than us, but I need as little stress as possible at the moment and need to be prepared for any that might come my way!

Olliesmum

jimbo26

EquusSomnium - Try a credit card from your bank first, failing that try one of these.

Capital One Classic https://www.capitalone.co.uk/creditcards/secure/application.jsf

Aqua http://www.aquacard.co.uk/

Vanquis http://www.vanquis.co.uk/home/home.aspx

Barclycard Initial http://www.barclaycard.co.uk/personal-home/cards/initial/index.html

Halifax Classic http://www.halifax.co.uk/creditcards/classic.asp

This will help build up a history of credit, and will assit you later when applying for further credit.

Justy

olliesmum wrote: »

Hi, this is my first post, so I've quite probably posted it in the wrong place - sorry if I have. My problem is that a couple of months ago, my baby son was seriously ill in hospital and I forgot to pay my credit card on time. I did pay it but it was late by about a week. Our old mortgage deal is up in November, and now I'm really worried that I wont be able to get a new deal with this late payment on my record. Will this late payment affect my credit rating that much? I don't have any other blips on my credit rating other than a few times I've gone over my overdraft limit and according to the online calculators we have enough income to cover the size of mortgage that we want. Do I need to worry about this or am I getting myself in a state over nothing? Sorry I know lots of people are much worse off than us, but I need as little stress as possible at the moment and need to be prepared for any that might come my way!

Olliesmum

Highly unlikely it will have any effect at all. Lenders are looking for hardcore non-payers or people who regularly get into trouble with their debts.

By the sounds of it you're not one of these people. Put your mind at ease and have a look at your credit reports - then you can see for yourself.

Remember banks/mortgage companies/credit card companies NEED to lend money to make money - so they're not looking to punish those with virtually perfect credit records.

Justy

EquusSomnium wrote: »

I plan to pay off the remainder of my bank loan when I can, will that improve my score?

It sounds daft but paying off loans doesn't actually help your score. Lenders prefer active accounts rather than settled ones. However, if you're planning on borrowing more money it certainly helps to pay it off so you're not seen as over stretching yourself.

NickX

Justy wrote: »

It sounds daft but paying off loans doesn't actually help your score.

Not sure about that one - I know the credit card companies like to see you carrying some debt, but actually paying off a loan goes to show that you have managed the debt efficiently.

The main thing is to avoid missing payments, breaking through credit limits, or worse allowing the account to go into default.

Night-owl_6

www.equifax.com

Night-owl_6

www.experian.co.uk




















www.CheckMyFile.co.uk/CreditAgency











































www.callcredit.co.uk

Night-owl_6

Bumping Up To The Top

kaiser051

hi im new to credit cards ive just recieved my fist one from abbey afta years of being rejected due to my credit score i suppose.i read this article on here
credit card companies reject you for always repaying cards in full. The most profitable credit card customer is perpetually in debt, never defaulting, always paying just the minimum (see Danger Minimum Repayments article). Thus if you pay off in full every month, or always shift debt to 0% cards, you may be rejected for further credit.

i was just wondering if i am looking to increase my credit score will it harm me if i do not pay off repayments in full when i receive the bill,if i pay off just above the minimum payment say will i get a lesser credit rating than paying the item off in full staright away? thank you

skyrider007

kaiser051 wrote: »

if i do not pay off repayments in full when i receive the bill,if i pay off just above the minimum payment say will i get a lesser credit rating than paying the item off in full staright away? thank you

As long as you keep up with your payments and don't go over limit your card issuer will consider increasing your limit.