repairing my credit file

quiney2012

i have had poor credit over the last 4 years, since then i went to brighthouse 8 months ago and got myself something from there, i have always made my payments to them and since then i have been able to get a couple of payday loans from payday uk and the money shop and also now ive been accepted for a phone contract, my credit score is currently on or slightly over 271 (checked 3 weeks ago) who else will give me credit such as credit cards etc so i can keep building up my credit file? i dont need people telling me not to etc i can afford it and its my decision. thanks guys

CLAPTON

what makes you think that taking out PDL helps your credit file?

more important is what is on your credit files?

quiney2012

with payday uk they say on their website that their loans are recorded onto your credit file and paying them will improve your credit rating

Tixy

Don't focus on what score the credit reference agency says you have - thats not important. Its what is on your credit file that is important.

Taking out payday loans will not improve your file in a way that will make it easier to get mainstream credit - its far more likely to make it much harder to get mainstream credit (potential lenders see that you have used payday loans and assume you cannot manage your finances).

A subprime credit card would be a better way to build up a good credit history - providing you pay it on time and don't go overlimit etc. And its cheaper - providing you pay in full each statement. Whether you are likely to be accepted for one would depend on what is on your file now.

jason1231972

Brighthouse and payday loans don't help your credit rating, so count them out as a 'building' option. They can only either a) do nothing to your credit rating (because they don't always report to the credit reference agencies when you do pay, or b) trash your credit rating if/when you don't pay, because they may report to credit reference agencies.

There's also evidence to suggest that having these kind of credit accounts (payday loans in particular) can scare off potential lenders, if there's evidence on your bank statements, etc., that you use them.

Mobile phone contracts aren't the best way of rebuilding credit (because realistically, the product you are 'lent' until you repay your contract in full is actually relatively low in value, even if you personally pay a lot of money for it), but they can help, because they do report your good (and bad!) behaviour to the credit reference agencies, which is the most important thing.

As for who exactly will lend to you...how long is a piece of string? Likely options (if any at all) would be subprime credit card issuers. All come with high APRs, so be careful.

Your credit 'score' counts for absolutely nothing. The key to building credit is to manage your accounts effectively, and to limit borrowing to organisations that will actually 'help' you officially build/repair your overall report.

See you on the Debt Free Wannabe board in 6 months...!

quiney2012

thanks guys, clearly brighthouse and these payday lenders are naughty in their techniques of selling, it seems theyll tell you anything to get you into an agreement with them

CLAPTON

what do your credit files say?