Rebuilding credit rating - confused

Tigger1983

Hi all,

OH and myself are trying to rebuild our credit rating following a dififcult financial time which resulted in me going BR. We have recently been accepted for Vanquis cards, current limit £250. We use about £30 a month and pay off the full balance when the statement arrives (he read somewhere that you should keep balances below 30%).

He's had a look on the "Checkmyfile.com" multi agency credit report and it said:
"You have a clear payment history, but are not currently fully utilising the credit you have available. Whilst this account is having a positive impact on your credit score, be aware that lenders may be reluctant to lend to you if you're not using the credit facilities already acquired."

What does this mean, and are we using the card in the best way to help increase our credit score? The two pieces of advice seem to conflict with each other!

Thanks,

Tig x

rachelonna

I'd use slightly more, say £100 just to show that you can use slightly more and repay on time.

This said, if that's not possible/doesn't make you comfortable, I would just ignore this - it's just to show that you can handle credit responsibly, and you're doing that already.

Wouldn't worry too much

YorkshireBoy

Tigger1983 wrote: »

He's had a look on the "Checkmyfile.com" multi agency credit report

Stop wasting your money on this service. They don't get all the information from the CRAs that you could get direct from them by paying £2 for your statutory report (or taking the free trials).

See the checkmyfile T&Cs to see what's missing, and to see you've agreed to receiving a "simplified" credit report rather than a 'full' report.

BugsyBrowne

Not saying everyone who goes BR can't be trusted with money again as having a recession etc has Unfortuantly broke a few people where bankruptcy is not an option, but I would forget about trying to repair something that takes over 6 years to be fixed.

meer53

What it means is that if you apply for further credit, a lender will be wary as to your reasons why.

Why would you need more credit if you already have some available ?

If i were you, i wouldn't take any notice of a credit score, just concentrate on living within your means. If you do that, then eventually, your credit score will sort itself out.

YorkshireBoy

BugsyBrowne wrote: »

...I would forget about trying to repair something that takes over 6 years to be fixed.

OP hasn't said when the bankruptcy occurred, but presumably it must be more than a year ago? As far as I'm aware (not an expert), even Vanquis won't accept undischarged bankrupts?

So getting a card now will establish up to 4-5 years of credit management history ready for when the bankruptcy falls off their credit file.

BugsyBrowne

YorkshireBoy wrote: »

OP hasn't said when the bankruptcy occurred, but presumably it must be more than a year ago? As far as I'm aware (not an expert), even Vanquis won't accept undischarged bankrupts?

So getting a card now will establish up to 4-5 years of credit management history ready for when the bankruptcy falls off their credit file.

It just shows how easy going BR is these days, people borrowing then can't pay back then go BR then start to repair their credit files ready for their next lines of credit.