how to up your credit rating

leoniestacy

hi im not 100% this is where i should post this, sorry if its not.
when i was younger got into some debts with money phone company's, ive check my credit rating and it turns out i still own the one £750 it was back in 2006. Someone has told me that if start paying this off it will stay on my credit rating for another 7years is this true?
Anyway my main question is any tips how to up your rating im on noodle and have 1/5 points.
would getting a capital one credit card be worth it if i paided it off every month ontime?

ben80

Hi, I'm soon going to be in a same situation as you... the need to improve my credit rating. I intend to take out a credit card 'for people with bad credit' - i.e. with 30%+ interest - put something regular on it, like shopping and fuel, and pay it off every month like you say. I'm debating getting 2 and doing the same. Then if I'm ok, I may get a 3rd, but will be waiting till closer to the time and taking advice on here first!!

I think a 'poor credit' credit card is the way to go.. as long as it's paid off in full each month.

leoniestacy

who are you going to go with ben? is there only captial one, who do this?

rtho782

Sub prime cards:

Vanquis (seem easiest to get)
Capital one Classic (will sometimes offer a deposit backed card so can be easier to get)
Capital one Progress (a little harder to get but in 3 years is a reasonable APR)
Aqua (they now do a card similar to progress as well)
Barclaycard Initial

After that, you are probably looking at a Sygma/Creation card like the FlyBe card.

After that, mainstream cards.

ben80

Thanks for that rtho, very useful. Nearer to the time (Feb) I will be looking at the credit cards section on this website to see what I can get - there's a specific area of the Credit Cards section for people with poor credit.

bargainbetty

If you are going to do this, get one card with a low limit. Do not take out two or three - the temptation to not pay one off in full if you have a bad month will happen at some point and then you're into some seriously stupid interest rates.

Get one. Try it for no less than six months. If you think you can be disciplined, then prove it to yourself first.

Plus, if you have defaults etc on your credit report, please note this won't remove them. They will stay there for six years, come hell or high water. You can only 'improve' your rating so much, so focus on learning the skills you need to budget and live within your means.

Good luck x

[Deleted User]

I agree with the above 2-3 will look bad.

My noodle is also 1/5

I have lots of accounts, all up to date, but the damage seems to stay until it leaves your account (6 year rule).

No matter what I do mine does not change until one of my negative accounts drops off, even when I only have 2 bad accounts, no defaults or CCJ or anything :-(

natlie

like assj says its going to take 6 years - in my experience nothing else helps my rating improves as old bad debts fall off I am counting each one falling off until 2015 when an arrangement to pay goes and leaves my report clean first time in 11 years

leoniestacy

what if you dont pay off the debt will it stay on there or will it go after 6 years?
thanks for all the advise everyone x

leoniestacy

just bumping this up does anyone know what if you dont pay off a debt will it stay on your credit rating or will it go after 6 years?