low credit rating - 0% credit card advise required

Tixy

If you only pay the minimum each month on your cards this is visible to other potential lenders - and generally they will class that as a negative.
Even just paying a couple of quid more gets rid of that marker. But obviously its a lot better to pay a lot more than that off to save interest.

If you pay off significantly more than the minimum on your cards for 3-4months and get them well under the limits then you might well find you would be accepted for a new 0%.

You might want to check your equifax and callcredit files as well (no need to sign up to the ongoing premium services or to see a score - just your statutory reports for £2) just to check that there is nothing incorrect on there.

Eg maybe you are financially associated with ex still if you haven't filed notice of disassociation with those 2 agencies as well. Or occasionally equifax might not show you as being on the electoral roll even when experian does. Worth a check.

izools

ajohnston wrote: »

i always believed that as long as the required payment on your credit was met each month and paid there was not problem

Unfortunately credit scoring is worlds more complex that this.

Meeting the required payments is only the very first thing you need to do. When you apply for credit, the following is taken into account:

>If you're on the electoral role
>How long you've lived at your current address (Under 12 months is less good)
>How long you've been with your bank (As above)
>How long you've been with your employer (As above)
>How many times you've applied for credit in the last six months (more than twice is less good, more than three or four is poor)
>How much you earn compared with your rent / mortgage
>How much you earn compared with your credit limits
>How much you earn compared with your level of debt
>How much you owe compared with your limits
>How many credit accounts you have
>How long your active accounts have been open
>Whether your active accounts are up to date
>How long it's been since you missed a payment
>The number of payments you've missed in the last few years
>Whether you have any defaults
>Whether your defaults are settled
>Public record information (CCJ / IVA / Bankruptcies)

The above list isn't exhausive, either. A lot is taken into account and any signs of debt stress, frivolousness, instability, or poor affordability are considered.

But now you know you can make the next step to a better creditworthiness for yourself

Good luck! :beer:

Pantera_Fan

Tixy wrote: »

If you only pay the minimum each month on your cards this is visible to other potential lenders - and generally they will class that as a negative.

Not all cards report whether you only pay the minimum or not. In my experience only Barclaycard and MBNA cards report this.

OP - I would suggest you try Sygma, their acceptance criteria is generally more lax than others, especially on the Flybe card.

http://www.creation.co.uk/credit-cards.html

chexum

Pantera_Fan wrote: »

Not all cards report whether you only pay the minimum or not. In my experience only Barclaycard and MBNA cards report this.

It might depend on when you actually opened the cards; in my experience, only Sygma doesn't report the detailed monthly payments... Or do you mean you see the monthly payments, and despite paying the minimum, it is not flagged as "paid minimum" next to the payment value?

Nevertheless, if you do see the payment details, if you see no new transactions, any other bank could calculate the APRs the balance is on and then whether the monthly payment was "close" to the minimum payment. Another dead giveaway if the monthly payment decreases very slowly.

To the OP - do you really want to pay it all back within ~1 year of 0% balance transfer? It would cost you about 3% up front, and if you really want to pay it back, it would need about £200 each month for a year to get rid of all balances.

However, if you *can* afford £200 each month, even with 30% APR, it would take only a year and 3 months to pay it all back, according to the minimum payment calculator on the site. The earlier you pay more, the quicker you get rid of the balances. Another trick if the minimum payment would be, say £28 this month, set a fixed direct debit for £30, £35 or whatever you can afford - it makes a big difference after you start to pay more than the minimum...

I would suggest, if you are just looking for a payment "holiday" that a 0% BT card can offer, that only delays clearing it all, and sets you back a bit with the BT fee. Until then, to be honest, paying minimum is *the* payment holiday, but at an enormous expense.

Perhaps you'd be better collect your Statement of Affairs at:
http://www.makesenseofcards.com/

And then post it on the Debt Free Wannabe forums on this site.

Oh, and forget about the CRA subscription, even if you're still on the £8pm one, and never buy scores, that's almost £100 a year for something that you can check out for £2 a pop, and you shouldn't really need to look at it more often than once or twice a year...

ajohnston

hi

after months of head scratching wondering why my credit score was low i think i have finally got to the bottom of it but need help !!!!

i have been self sufficient since i got divorced in 2007 and on my credit file i have ended all financila connection with my ex since then my credit cards even though they are at their max of £1000 (2 of)the minimum requested payment is paid on time if not in advance and any other bills i have are paid in advance ie phone bill etc etc

i have access to my credit file and all is ok

but could never understand why i was getting k nocked back for a 0% card or a bank loan to consolodate my cards and pay them off

i live with my fiance and hes pays the rent i pay the utility bills and I am on the register

so i was getting rather confused

BUT

i have just found out that any credit i had on my file in the previosu 6 years will have a impact

when i was married due to my ex, my financies were difficult and sometimes payments were late even the ones in my name alone and a few payments plans were put in place - all these accounts were settled in 2006/7 prior to my seperation

that was 2006/7 i have been informed that this will effect my file for 6 years

i have today obtained my full credit report to see the companies affectied

some i can see were settled in various months in 2007 so should come off my credit file this year

but i am wondering as all these accounts have been settled can i write to the individual companies asking them to remove them sooner or can nothing be done and i just have to sit and wait

i am getting so paraniod over my credit score/file and have spent the last 5/6 years making sure i pay things on time etc etc

i am extremely anxious to sort this out so i can apply for the 0% card or bank loan to get these cards paid off once and for all

thank you


Ann