Question about credit rating :)

PenguinJoshy

HI, just stumbled across this forum so I'm a new user.

I have a poor credit rating, I'm poor at managing my accounts etc and have gone over my credit limit on a number of occasions.

My question is, when I eventually pay off my credit cards etc, will this still leave me with a poor rating?

If so how do I then go about getting a good rating?

*mudangel*

Hello!

In what way is your credit poor? And as others will probably tell you, the score you get is pretty much worthless. My credit score with Experian is good, but very poor with Equifax. Why? Because I don't have any credit accounts at the mo.

Are you on the electoral role? Do you have CCJs? Have you defaulted on payments? What credit do you have and how are you paying it off?

You really need to read your credit reports thoroughly to see what might be affecting it. Once you know what is what, you will be able to find out how to improve things.

Hope that helps!

PenguinJoshy

I just feel that it would be poor, I'm pretty much maxed out 3 credit cards - paying for education while on min wage.

I've gone over my credit limit on about 3 occasions over the last 12 months or so. I do pay off min payments every month, I just lose track of the credit I have on them, but as soon as I realise I've gone over I pay it off asap.

I just want to know whether, after I've paid all off, going over the limit will still leave me with poor credit rating.

*mudangel*

Hmm, late payments do look bad and will show up on your report. They'll stay there for 6 years, I believe. However, I don't think they'll look as bad as defaulting, so keep making the payments and if you run in to difficulty don't ignore it and ask for more advice.

Have you done a statement of affairs or used the budget calculator to see where you might be able to save money?

PenguinJoshy

*mudangel* wrote: »

Hmm, late payments do look bad and will show up on your report. They'll stay there for 6 years, I believe. However, I don't think they'll look as bad as defaulting, so keep making the payments and if you run in to difficulty don't ignore it and ask for more advice.

Have you done a statement of affairs or used the budget calculator to see where you might be able to save money?

I'm just looking to distant future tbh. I'm 23 now, and will eventually look to move out. However it will take me a few years to save out for a deposit.

I'm just worried about securing a mortgage, with a potential bad history, 5 or so years down the line.

I suppose if it came to it, I could get my mom / grandparents to take a mortgage out on my behalf (as if it was them buying) and just pay them the mortgage payments etc.
(is this even viable?)

I know once I've cleared cards etc, I'll be able to save and afford it between me and my girlfriend., in the years to come as I'll move on within my career - fingers crossed.

*mudangel*

And you're very right to be worried, but if you take responsibility for your finances then that's half the battle. The worst thing you can do is ignore potential problems.

Have you actually properly looked at your credit reports? If not, then that would be a good thing to do - check out Experian, Equifax and CallCredit (Noddle) if possible and find out exactly what they have on you at the mo. Once you know where you are, you can plan your next steps.

If you live within your means and are very careful with credit (there's a wealth of info on this site to help you), then there's no reason why you shouldn't be in a position to get a mortgage in the future. Just don't scupper your chances by making mistakes now as they'll follow you for years.

PenguinJoshy

*mudangel* wrote: »

And you're very right to be worried, but if you take responsibility for your finances then that's half the battle. The worst thing you can do is ignore potential problems.

Have you actually properly looked at your credit reports? If not, then that would be a good thing to do - check out Experian, Equifax and CallCredit (Noddle) if possible and find out exactly what they have on you at the mo. Once you know where you are, you can plan your next steps.

If you live within your means and are very careful with credit (there's a wealth of info on this site to help you), then there's no reason why you shouldn't be in a position to get a mortgage in the future. Just don't scupper your chances by making mistakes now as they'll follow you for years.

Thanks for that. I will certainly look into my credit report.

However, if worse comes to worse and if in x amount of years I do get rejected for a mortgage even if I've saved for deposit and in steady emplyment and thus can afford monthly mortgage payments etc. Is it a viable option to get someone else i.e parents etc, to take out a mortgage, if they're willing?

My girlfriend has no credit cards etc, so will most likely have a good credit, so I'm most likely worrying over nothing!

*mudangel*

Hmm, I'm really not sure about whether your parents could step in. Hopefully someone else could advise on that.

Ironically, your girlfriend may look less attractive to lenders than you. No credit = no credit history and lenders are very wary about someone with no track record.

This link could be very useful in explaining things further: http://www.moneysavingexpert.com/loans/credit-rating-credit-score/