Rebuilding credit?

clearingout

Not sure where to put this, but hopefully someone can advise.

Prior to the end of 2008, I guess I had a fab credit score, no problems gaining credit when needed, large mortgage always paid on time, various loans and credit cards paid on time every month.

Husband left. Everything up the spout. I did everything I could to maintain my relationship with my own bank (had banked personally with Barclays since university, jointly with the ex with HSBC) and took an early decision to pay back their credit card and loan and nothing else as I simply couldn't afford it. This lead to the mortgage going into serious arrears and despite the ex having a court order to pay it (he could afford it, believe me), he didn't. It was sold in July 2010 with about 9 months of arrears on it. A second property we owned was sold August 2010 with again, approx 9 months of arrears. I incurred one CCJ during the process for £3k which was paid back in July 2010 when the house was sold. The ex husband is up to his ears - CCJs, Charging Orders, money owed to HMRC...you get the picture. I have done the 'financial disassocation' thing with the 3 major credit companies.

I am now mortgage free in a house registered in my name only. I have a Barclaycard with about £200 outstanding which I just pay every month at the minimum. I have a flexible loan account with approx £4k to pay back which I am currently paying at the minimum (working on how to get on top of this as it's costing a small fortune) which is ticking over each month - there have been no defaults on this at all, ever - had the account since about 2003 and have used it constantly.

What do I now do to re-build my credit? I have just started full-time working again after a period of self employed, part-time work with children etc. etc. I have a car which is going to need replacing within a couple of years and the only way I'll be able to do this is with a substantial amount of credit - I am thinking ahead! Is the lack of a mortgage now going to be a problem when obtaining credit in the future?

emlou

Have you got a mobile phone on contract? That could help provided all payments are made on time.

Also pay off your Barclaycard then use it once a month to buy petrol or food and pay it off in full every month without fail. Even if you only spend 20 quid on it, as long as it's paid off in full it should help.

Good luck.

IF

Hi Clearingout, I would post this on the DFW board too for more support and help.

The Debt-Free Wannabe Board - Click here

Best wishes
If...x

clearingout

thanks both. Yes, I have a mobile phone on a contract (not much of a contract, though, £8.50 a month!) which I've had since mid-2009. Was thinking of getting rid but maybe not the best idea if trying to rebuild my credit, then?

thanks - have posted in the DFW section as well.

kepar

Sorry but I am still trying to work out from your post how you are in a mortgage free house.

My main concern is if you can only pay the minimum to your credit commitments now, how are you going to repay a car loan?

Make sure you are on the Electoral role.

silvercar

kepar wrote: »

Sorry but I am still trying to work out from your post how you are in a mortgage free house.

At a guess the house(s) sold with a lot of equity in them. So even though there were arrears to pay off with the mortgage on sale, there was equity left over.

clearingout

yes, was a ton of equity and thankfully a mum willing and able to help out to make up the difference.

Am on electoral roll, yes.

I am currently doing an 'on the job' teaching training course and earning a pittance as a result. This will increase next year and so I anticipate being able to make repayments towards a car then. Not as daft as I look, honest!

Ineedaname

All the missed payments will remain on your credit files for 6 years and affect your credit worthiness for that length of time.

All you can do in the meantime is keep up with minimum payments and try the tips as above to ensure you show you are now on top of your finances if anyone ever credit checks you. Your recent history will count more and more as you build more years of it.

kepar

silvercar wrote: »

At a guess the house(s) sold with a lot of equity in them. So even though there were arrears to pay off with the mortgage on sale, there was equity left over.

I have been reminded by a poster that I have to comment on this post.


Can you please let the OP answer the questions and not answer for them.

Thanks

silvercar

kepar wrote: »

I have been reminded by a poster that I have to comment on this post.


Can you please let the OP answer the questions and not answer for them.

Thanks

I did start my post with "at a guess" making it crystal clear that I was guessing.

In any case OP has now confirmed my guess.:p