Advice on how to build up credit score after bankruptcy

Legacy_user

Hi all, my brother went bankrupt 4 years ago. He now has a job and is handling his money well, but is looking to build up his credit score again. He has managed to get a high interest credit card with a low credit limit, and a catalogue with a low credit limit also. What is the best way for him to increase the credit limit & in turn improve his credit score? Should he make min payments, or use the credit & pay off quickly?

Any advice would be great. I've never had a credit card or had credit issues (luckily) so don't know how best to advise him.

IF

Hi MM, Sounds like your brother is getting those green ticks and doing well. If I was him I would pay off in full and not do the min payments. Check he isn't applying for too many lines of credit too quickly though as that can go against him with credit checks. Best to leave at least 3 months between each application.

Just another two years and his BR will be wiped from his credit files.

Has he cleaned up his credit files yet by the way?

Credit Reference File Clean Up Post Bankruptcy Sticky - Click here


Best wishes
IF...x

System

ifwisheswerehorses... wrote: »

Hi MM, Sounds like your brother is getting those green ticks and doing well. If I was him I would pay off in full and not do the min payments. Check he isn't applying for too many lines of credit too quickly though as that can go against him with credit checks. Best to leave at least 3 months between each application.

Just another two years and his BR will be wiped from his credit files.

Has he cleaned up his credit files yet by the way?

Credit Reference File Clean Up Post Bankruptcy Sticky - Click here


Best wishes
IF...x

Thanks for the reply - thats what i thought, and have told him, hopefully he will listen! He has applied for a few different catalogues - mainly because a friend recommended one, but he didn't like it, so has signed up for Next now. I'll need to make sure he knows not to apply for anymore for a while.

I don't know anything about cleaning his credit files, so i doubt he will...i'll need to check the link you have added...thanks

System

I might be totally wrong, but we checked his credit expert account the other week, and everything is showing as settled - so does he still need to do a credit clean?

The thing is, my brother didn't actually have a lot of debt (in the grand scheme of things anyway) when he went bankrupt - less than £10,000 - there weren't many creditors - he went bankrupt because he had 2 loans and lost his job and couldn't keep the payments up.

IF

MM, You will find companies report to one of the CRAs rather than all three, that's why it's suggested that you get your credit files from all three of the CRAs to see what's held on there.

- The default date is on or before his BR date.
- The current balance is marked as settled/satisfied in some way.

They are £2 each for paper/online copies.

Click on blue links below:-

Experian - Click here

Equifax - Click here

Callcredit - Click here
NB: You can't order a paper copy online, they would rather you pay £12 don’t do that just print off the application form, P.O. for £2 and post this recorded delivery.

Essential reading thread by Fermi :-

Credit Reference File Clean Up Post Bankruptcy Sticky - Click here

IF...x

Hairymonster

All of these companies also offer 30 day free trials; I would suggest going through that 1st and just remember to cancel the free trial after about 20 days.

I actually just got an updated version of my credit report since my BR fell off on 20th November to make sure it was "clean" and was surprised to find out there were still a few old issues still not updated. so he should make sure all default dates should be no later than the date of BR.