How to become credit worthy?

ebasiuk

I've only just signed up as im sure you are the best guys to ask.

I NEED to improve my credit rating, i cannot even get a credit card.

Im currently 23. Gross income £1700-2800.

1 current account with an over draft of -£500. which monthly hits 2k+
1 student overdraft account with an overdraft of £1200 (within limits) (was £2000 - slowly being reduced).
1 Esaver account with zich (at the moment).

and approx a year ago i defaulted on a £500 student overdraft account with RBS which i think has under £200 remaining which i know needs to be paid.

Gross monthly income varies from £1700-2800.

How the hell can i boost my credit rating, im guessing i need a credit card but no one will give me one (tried 3 now), am i wrong in saying if i pay off the defaulted loan it will stay on for 6 years or so meaning no one will even give me one until this has cleared off my rating? So how the hell can i boost this rating?

Will they even consider once i wipe my overdraft debts but still have the defaulted?

Any suggestions - would REALLY appreciate it, asbolutley any ideas.

Il keep a close eye on the post.

thatsean

Default is with you for 6 years. You've proved that you can't be trusted with £500, there isn't going to be a queue of companies looking to offer you more.

Keep within your limits and reduce your overdrafts, you may find that your own bank will offer further lending based upon the behavior of the account.

Your current account and pay monthly mobiles etc will all report to credit agencies, so keep these in order and the amount of positive data will increase - also, ensure that you are on the electoral roll.

Changing the subject, why do you need a credit card? You're young, and you have a regular, and reasonable income, get out of debt and start saving some money instead of chasing after credit

Saints2011

Check these two links

Here

& here

ebasiuk

thanks saints will check in a minute.

thatsean, excuse my ignorance but ive always been under the impression that by borrowing credit and repaying within time improves credit score. (not that i would hardly use it) im not looking for credit at all im just looking in to the forseeable future and don't want issues.

So whats recommended first? get this RBS debt paid off now?. Does that mean the 6 years starts from the date its paid or from the date it defaulted.

thatsean

It improves the amount of positive data on your credit file, you don't have a set credit score.

Get the default paid off asap. 6 years from the date of the registration of default.

There are credit cards such as Cap 1 and Vanquis that are available to people with adverse credit information.

ebasiuk

Cheers thatsean, really appreciated.

Was worried it would be 6 years from date of balance clearance.

Will be paying off tomorrow morning.

Is it worth merging my student & current account together? i.e do more open accounts = poorer score?

Is it even worth looking in to a vanquis to improve credit score and pay back min monthly amount or would it be more beneficial to my score to clear the overdrafts first.?