does having catalogue account help credit rating??!!!

lollypink

I have a bad credit rating and I cant get credit at all except I have a T mobile account and Ive recently found out that I can get a catalogue account .. I know the interest is stupidly high and I am not remotely interested in having it but will it help my credit rating??!! If i spend and pay off?? Thanks

Tixy

It probably will - in that is will help you start to build up a positive credit history.

By 'bad credit rating' do you mean you have previous debts that you've defaulted on/have CCJs/lots of missed payments? or do you mean you have almost nothing on your files at all?

If you've got defaults/CCJs etc visible then it won't make much difference until they've all dropped off. Once they've dropped off it will help you.

If its a lack of any history at the moment then it should help you build up your file.

suburbanwifey

Yes. If you buy small amounts regularly and pay it on time.

lollypink

Thanks for that. I have one deafult which drops off ina august this year and one satisfied default from 2009 and thats it everything else i had (was very bad with money in my early 20's) has fallen off but I still cant get any credit to build my rating up apart from catalogues. Im 31 now in a steady job as a teacher and really want to buy a house but it just feels a bit hopeless

Tixy

In that case a the catalogue account is a good start. Once the august default has gone try again for a subprime credit card. And if you get use monthly and repay in full monthly to start building up a history.

In terms of wanting to buy a house - how soon? do you have your deposit saved yet, are you literally ready to buy? It is possible to get a mortgage with a subprime lender if you have satisfied defaults on your file, but they'll usually expect a higher deposit and the rates will be higher.

lollypink

thanks for your reply. I have 15k saved so not lots and I earn 28000 PA.....

what credit credit is subprime ? Thanks

samtoby

I have credit which is not great but you may find a main lender will accept you with a good deposit. I have spoken with some independant advisors.

Otherwise there are still some Subprime lenders but you need to generally go through a Independant mortgage advisor.

I have a T mobile account, bank account and Very account. Do not go buy the scores the credit sites offer they mean nothing. Try Very for a catalogue. They accepted me so should accept anyone lol. My first limit was £500. I used it every month to buy something even if its socks just to use it. I have had the account a few months. My friend in a similar situation has used hers monthly paid it off and has received a rise for her first limit of £100 to £500.

Samantha

suburbanwifey

lollypink wrote: »

Thanks for that. I have one deafult which drops off ina august this year and one satisfied default from 2009 and thats it everything else i had (was very bad with money in my early 20's) has fallen off but I still cant get any credit to build my rating up apart from catalogues. Im 31 now in a steady job as a teacher and really want to buy a house but it just feels a bit hopeless

So your satisfied default from 2009 will drop off in 2015 which isn't that long away in the meantime, a catalogue is a fabulous way to build credit but as they charge higher interest rates than credit cards, buy small and often, its the 'often' which shows that you can borrow and pay back. A lot of credit card providers get data from catalogue customer databases to pre-select good payers. Do this during the period of now and that last default dropping off and you will have 'several years' of good credit showing on Experian. Good Luck and all the best in your new job as a teacher x

PS. Its never hopeless, most of us are a bit daft with money in our 20's but the 20's soon pass and so do any mistakes on those credit files. Keep your goal of a home of your own in your mind and work towards it.

Tixy

Some subprime cards are listed here along with some info about them - 'Bad Credit' Credit Cards

In terms of if you get to the point you are looking for a mortgage before the last default has gone then talk to an independant mortgage broker (and tell them about the default or show them copies of your credit files as they are at that point in time).

suburbanwifey

lollypink wrote: »

thanks for your reply. I have 15k saved so not lots and I earn 28000 PA.....

what credit credit is subprime ? Thanks

My advice? avoid a sub-prime lender, you'll pay more for it in the end and if you follow my advice in 3 years time you'll have a bigger deposit saved up (you will keep saving to add to that 15k won't you ) and when that default drops off you will have a good credit history and you will be suitable for main prime lenders - better rates, better all round. Sub-Prime market is not good, not for anyone but the desperate and a lot of those are now deep in the mire. Avoid to better your future not to add to problems.

Don't rush rebuilding your credit history or buying a house and it will be the best decision you ever make. Plus, the market will be more stable then.

lollypink

hi thanks for all your replys guys, I managed to get a next account for £250 and a fashionworld account for £150 but was declined from additions :mad:

anyway so no I have a T mobile account (although I dont use much the mobile - should i? I have iphone in partners name I use regulary as couldnt get contract back then) and I have a capital one card limit £500 which I try use and pay every month - (incidentally should I be paying off all the balance or just the mimimum?)
I have one default that drops off this august and then another deafault from 2009 which I have recently satisfied. So I guess its just a case of sitting being good and waiting and building my score accordingly?? Is there anything else I can do to help?

I think surburbanwife you are probably right to wait and I could save some more desposit I guess. its just everyone keeps telling me now is sucha great time to buy and as I'm 31 it feels depressing - all my friends around me have their own houses ... i feel like a bit of a loser