Ways to build credit, will I be able to get a mortgage before I'm old?!

GoldenShadow

Hey guys

I'm 21, my OH 24, and in the next 2-3 years we're aiming to save up enough for a deposit. Aiming to save about 15-20K hopefully...

Anyway, been on the old credit report websites OH's score is 854 and 'Fair' on Experian. He has a bank loan of 7.5K (for his car), a laptop on finance and three credit cards. One has £600 on just because we recently paid for a holiday, the other two have nothing on. Would cancelling the other two help to an extent? Is it just a matter of paying off his loan and finance?

I used Experian a couple years ago so have used Noddle instead and had a score of 3/5. I'm a student and whilst working part time, I don't use masses of credit I guess. I pay pet insurance and a phone contract monthly but that's it. I have one store card (£200 limit) and one credit card (£500 limit). Never missed payments and probably use store card three times a year and credit card never. I do have a £1250 student overdraft which is interest free, in the last six months I have been using the majority of it. Is that likely to have a big impact? Would using my credit card every couple weeks and paying it off within a couple days help build credit..?

Would really appreciate any tips, I've read a few posts on varying forums but you guys seem to really know your stuff and I'd love it if you could give me/us some advice. Neither of us have a dire rating at least; but number one aim is to get on the property ladder and don't want 'fair' credit to hold us back!!

Wh05apk

Ignore paid for scores, they earn the credit referencing companies an income and that is it, they mean nothing to lenders, who operate a secret score system, with different lenders placing more emphasis on certain things than others.

Do not over worry about your score, ensure you are both on the voters roll, DO NOT miss any payments - ensure everything is set up on DDR to make sure payments are made on time, personally I would just get a credit card, and ensure that you use it regularly and repay it in full monthly.

A good credit score takes years to achieve, but can be ruined overnight by a couple of silly mistakes such as forgetting to pay credit cards off due to holidays etc.

Your overdraft will have minimal impact, provided you stay within the limit.

GoldenShadow

That's fab, thanks

Will make sure I use my credit card; even if I just stick groceries on it and then pay it off. Reassuring as well, I know I wont have an amazing score but will ensure we pay everything on time whilst still using credit...