Credit Rating - Getting Me Down

dilemma10

Hi,

Will I ever see light at the end of the tunnel? Everytime I log into Experian I just want to throw in the towel. It does not make sense for some of the data it presents to me. It does not seem to take into account a good salary of £41k for a 24 year old.

Credit History Summary
Number of credit accounts (including those settled)11
Amount of available credit (excluding mortgages) £361
% of your total credit being used (excluding mortgages) 86%
Amount of outstanding debt (excluding mortgages) £5,723
Number of accounts overdue 2
Number of missed or late repayments in the last year 2

I also have the below defaults, all settled minus my Halifax which I am working with them to negotiate.

I have been daft but will I ever make it on to the property market?

The biggest loan is HP and this ends next May 2014 with me owning the car outright:

LLOYDS TSB BANK PL... Current Account Satisfactory £1,829 10/03/2013
HSBC BRANCH BANKIN... Current Account Default Satisfied 07/10/2012
SANTANDER CURRENT ... Current Account Satisfactory Settled 17/01/2010
EVERYTHINGEVERYWHE... Communications Satisfactory Settled 02/12/2012
EVERYTHINGEVERYWHE... Communications 1 payment late £198 07/04/2013
BLACK HORSE LTD Hire purchase/C... Satisfactory £3,286 07/04/2013
SHOP DIRECT FINANC... Mail order Satisfactory Settled 10/04/2011
SHOP DIRECT FINANC... Mail order 1 payment late £410 07/04/2013
HALIFAX Current Account Default £435 10/03/2013
LOWELL PORTFOLIO I... Communications Default Satisfied 27/01/2013
NEXT DIRECTORY Mail order Satisfactory Settled 10/03/2013

Thrugelmir

dilemma10 wrote: »

Hi,

Will I ever see light at the end of the tunnel? Everytime I log into Experian I just want to throw in the towel.

Suggest you forget about Experian for a while. Your first objective needs to be to clear any remaining debt asap.

After that you need to be squeaky clean. Pay all bills on time. As far as possible don't use credit. Save before you spend.

Start an account such as Nationwides Save to Buy. This will assist the rebuilding of your credit rating over the longer term. Demonstrating that you have the ability to manage your finances properly,

Don't despair. Focus on the future. Learn from your mistakes and you'll get there.

dilemma10

Thrugelmir wrote: »

Suggest you forget about Experian for a while. Your first objective needs to be to clear any remaining debt asap.

After that you need to be squeaky clean. Pay all bills on time. As far as possible don't use credit. Save before you spend.

Start an account such as Nationwides Save to Buy. This will assist the rebuilding of your credit rating over the longer term. Demonstrating that you have the ability to manage your finances properly,

Don't despair. Focus on the future. Learn from your mistakes and you'll get there.

Thanks so much for your positive comments, every year I think I will focus on this and something else sweeps me off my feet!

It was even worse before 2013 but I made it my mission to close down some debts so I paid off the Lowell and HSBC defaults and started negotiations with Halifax. Morally i do not like the thought of unpaid debts anyway...grr...Orange seems to be the worst gripe and is a big issue from the university days.

I do not have much debt considering but I guess at the age of 24 i need to nip it in the bud before it gets worse!

Thank you

Thrugelmir

dilemma10 wrote: »

Thanks so much for your positive comments, every year I think I will focus on this and something else sweeps me off my feet!

It was even worse before 2013 but I made it my mission to close down some debts so I paid off the Lowell and HSBC defaults and started negotiations with Halifax. Morally i do not like the thought of unpaid debts anyway...grr...Orange seems to be the worst gripe and is a big issue from the university days.

I do not have much debt considering but I guess at the age of 24 i need to nip it in the bud before it gets worse!

Thank you

Time is on your side. So set yourself realistic objectives. If you've the will then you'll get there.

Good luck.

Annisele

Experian doesn't really care about your income - it just (aims to) provide an accurate report of the way you've managed your credit.

If you earn £20k and have always paid all your credit off on time, your Experian report will be all shiny. If you earn £200k and have defaults left right and centre, your Experian report will look awful.

If you actually want to borrow money from a lender, they'll care about your credit history *and* your income. So, potentially you'd be able to borrow more than somebody on a lower salary.

But for now, no deposit = no mortgage (regardless of how much you earn or what your credit history looks like). So, I agree with Thrugelmir - you first need to repay your debt, then start to save. That's where your £41k salary comes in; the more you earn the easier it is to do that.

dilemma10

Annisele wrote: »

Experian doesn't really care about your income - it just (aims to) provide an accurate report of the way you've managed your credit.

If you earn £20k and have always paid all your credit off on time, your Experian report will be all shiny. If you earn £200k and have defaults left right and centre, your Experian report will look awful.

If you actually want to borrow money from a lender, they'll care about your credit history *and* your income. So, potentially you'd be able to borrow more than somebody on a lower salary.

But for now, no deposit = no mortgage (regardless of how much you earn or what your credit history looks like). So, I agree with Thrugelmir - you first need to repay your debt, then start to save. That's where your £41k salary comes in; the more you earn the easier it is to do that.

Thank you for your words of wisdom, I am definitely attempting to run before I walk!

Thank you.