Credit Dilemma

TaffyBlue

Hi all,

I am new to posting but have been reading the boards and the info on this site for a while.

I have a small dilemma and not sure what to do, so thought I would ask the experts!!

We are currently in quite a bit of debt, but we have a large light at the end of the tunnel. We have sold our house and due to complete by the end of the month. The money we will make will pay off our 35K mortgage and 28K debts (credit cards and loan). We will walk away not owing anyone anything, and a few thousand in the bank.

My dilemma is that we are now homeless, and want to rent a property, all of which do a credit check before authorising tenancy. We will fail a credit check.

Is there a way we can improve our credit rating when we won't have any credit? We don't want to keep the credit cards we have, because of the temptation to spend on them, but most of the info we have seen advise having credit to get a good rating.

Can anyone help with a top tip of getting a good enough score to be able to pass a credit check, without having credit cards that we might spend on.

Looking forward to being debt free!!! :rotfl:

TaffyBlue

Joe_Bloggs

As far as I know your credit history goes back six years. You can't just create a new credit history. I'm sorry that circumstances did not work out. I hope that you were able to benefit from the past equity increase in your property. You should try experian or equifax credit rating companies to check what they think of you.
J_B.
A 35K mortgage is £58 quid a week over 20 years a 6%. The interest alone would be £40 a week.
J_B.

stuwilky

An advantage with renting is that if you "fail" the credit check, it is usually possible to arrange to pay, say, the first six months contract in advance.
My brother had to do this on hi rental in Manchester, and after the six months hge just reverted to paying monthly in advance.

empfun

TaffyBlue, you could maintain one or more current accounts with or without an overdraft.