Improving bad credit rating

paulmapp8306

having an OD, and not exceeding it will not harm your credit score.

Having an OD, using it but not maxing it out (or indeed not using it)will actually help - as its available credit you are managing resonably.

paulmapp8306

Oh - 3 years is achievable.

6 years before the history drops off - BUT you havent defaulted on anyting (as I understand it - its just been cleared by parents) so the worse you have is a few missed payments. Actually, if you have an OD and can get a credit building card, and maybe a mobile contract then keep them all paid up, your history should be pretty good in 3 years.

Most lenders dont pay too much attention of late/missed payment history over 2 years old - unless there are LOTS of them.

bargainbetty

You should definitely prepare a statement of affairs (see the sticky at the top of the page). You don't have to post it up here, but it will help you establish exactly what you are spending your money on.

Account for your income, then list your rent, housekeeping costs, loan repayments to your dad, car costs, food, entertainments, hair cuts, phones etc - everything! You will see what you have left, and you need to learn to live within it.

Or, you'll do what I did, and run the damn card back up again. Twice. Learn now, while your parents are willing to help.

Good luck

Tommymax81

A few years ago mine was really bad due to a few late payments etc. I actually owe more money now but ALWAYS pay on time and avoid applying for new credit frequently. In 12 months my credit ( according to experian) improved from poor to excellent so it can be done.