Credit Rating Question

stereophonic01

Hi all,

I hope everyone is well and as I am new to this I hope you'll be kind (sure you will).

I currently have a poor credit rating from accrued University (and other) debt. I am on course to have 90% of this paid off this year and want to know when I will see an increase in my credit rating?

I am hoping to save for a mortgage in the near future and essentially this will affect my application once I have a deposit saved up.

Thanks in advance,
Stereo.

mildredalien

If a poor credit rating is due to defaults/late payments/CCJs etc. then these things will be on your credit history for 6 years after the date they were placed on there. I'd imagine your credit rating will start to improve once these things begin timing out, and if you are able to continue showing responsible lending e.g. paying any credit purchases in full each month.

DVardysShadow

If you mean the credit score given by a credit referencing agency, don't delude yourself that it is very meaningful. The only credit score which matters is the one from whoever you want credit from. And how long you have to be in the clear will vary from lender to lender.

stereophonic01

Thanks for your prompt responses.

The score is due to missed payments/defaults mainly. I have never had a CCJ or anything more serious.

Looking around this site it seems like getting a credit card and making small purchases that I pay off in full each month might be a good way of rebuilding. Any other hints? Already on the electoral reg but I do move regularly (changes of circumstance) and I have checked my credit rating to see if I am linked to anyone else.

DVardysShadow

Looks like you have most of it covered. When were

• your last defaults?
• your last missed payments?

stereophonic01

Last defaults were a couple of years ago.

Last missed payments were about 3 months ago. I now overpay the minimum and due to a windfall I am waiting on settlement quotes on the 3 cards to clear them. Hoping they accept!!

DVardysShadow

It is a real shame about the missed payments. Probably the defaults would have faded in significance after 3 or 4 years - the missed payments are not good, but they will tend to keep the defaults more live in that together they paint a picture that you don't have a good grip on your finances.

stereophonic01

I thought that might be the case. I know I will have to build from the foundations up so was prepared for a response like that.

It will take me 3 years to save enough for a good deposit so this should tie in with my credit rating improving if I make positive steps towards the improvement.

Thanks for your help!