Looking to improve my credit score...can anyone help on which would benefit me most?

Miss_magic

Hi all,
I have recently discovered that after moving house several times within a year, there was an outstanding debt I failed to clear. After discovering it a few months ago, I immediately paid it off and is now on my credit rating as a 'default', which has made it impossible for me to be put onto my partners mortgage, due to my poor credit rating.

Although I know i can't rectify this overnight, and it will clear in 6 years, I would like to know the most beneficial way for me to increase my credit rating so that it is possible for me to assist my partner on the mortgage asap.

The debt i have is:

• 1 credit card - £1600 (£200 over the limit)
• 1 catalogue account - £650

From what I have researched, clearing either is a bad idea as making regular payments is a better option.

Would it be more beneficial for me to lower myself below the limit on my credit card? Or to clear my catalogue account?

And does anyone have any further ideas which may assist me?



I have also filled out an 'electoral registration' today, and ensured that my debt is all registered to my current address.


Any help anyone can give me would be massively appreciated.

matttye

Constantly borrowing and paying back a reasonable amount of money when compared to your salary will improve your creditworthiness.

Aside from avoiding payday loans like the plague, it doesn't really matter how you do this, but credit cards are usually recommended.

I would pay off as much of your two debts as you can and then just use the two accounts a little bit and pay off in full each month.

The_Boss

Time will be the biggest healer providing you do not miss any more payments. Your 'credit score' doesn't actually exist though.

The card that is over the limit - can you bring this back within the limit reasonably soon?

What is the limit on the catalogue card? And what is the interest rate on your accounts? I'd concentrate on getting card 1 back within your limit first and then pay off the one with the higher interest rate first.

Miss_magic

Hi,

Thanks for all your comments.
Yes, I can bring the credit card back within the limit over the next month or so, the catalogue is way within the limit which is £2000.
The catalogue is 0% interest for now, so should I probably make larger payments continuously on the card? Until this changes?

Will my appearance to the bank improve the more that is paid off?
Or is it based on continuous payments alone?

And will this benefit me at all considering I already have a 'default'?
Maybe they will not consider me until this is cleared/ has been a sufficient amount of time since?

Many Thanks

The_Boss

Miss_magic wrote: »

Hi,

Thanks for all your comments.
Yes, I can bring the credit card back within the limit over the next month or so, the catalogue is way within the limit which is £2000.
The catalogue is 0% interest for now, so should I probably make larger payments continuously on the card? Until this changes?

Will my appearance to the bank improve the more that is paid off?
Or is it based on continuous payments alone?

Many Thanks

To be honest, it's going to take a good year or two for lenders to start considering you and the products/interest rates wont be great.

Get card 1 back under limit and keep paying off. When does the catalogue 0% end? How much can you realistically repay each month in total?

Thrugelmir

Miss_magic wrote: »

[*]1 credit card - £1600 (£200 over the limit)

Over limit will flag up that you don't manage your finances well.

Get the balance inside limit as soon as you able.