Improve credit rating?!?

notaclue101

Hi all

Firstly thank you for taking time to read this post. I will be looking to get a mortgage in the near future with my partner. He has excellent credit. I have just had my credit report for Equifax and I was happy with my rating, 550 (as they score it).

I have two unsettled account on there which I feel would further improve my credit status. One being a credit card, which has a recent balance on there and the other and overdraft on my current account, both are up to date, but I am assuming by paying one of there off it would settle another account and could boost my score, is this the right way of thinking?

Which would be best to clear? or should I just carry on and maintain these payments instead of clearing in full to show ongoing ability to meet payments?

Any help appreciated

Thanks

CLAPTON

all things being equal ...

using an overdraft regularly is an indication of being in financial difficulty or poor money management skills

using a CC for regular spending and paying in full each month will improve your credit score.

notaclue101

Ok thanks

So I it would be better to pay the overdraft and keep the credit card open and keep up with payments. That would look more attractive on my credit file?

Thanks again

CLAPTON

yes, but I'm a little curious how you are planning to get a mortgage (presumably with a substantial deposit) if you are using your OD and have CC debts

notaclue101

Yes we will be putting down a £40,000 deposit and LTV will sit at 75%. Just want to make sure the credit looks as attractive as possible.

Overdraft was an ongoing facility I'd never really just cancelled which is a bit silly, CC was used to make a purchase recently, needed to be paid through a CC.


Many thanks