Bah credit advice

Nicwilson

Hi, just needing some advice really....in the past I've had credit cards, store cards, loans etc and got into bad debt with them then went through a debt management plan to pay them off and managed to get them all paid off last October however every time I check my credit report it's still showing low! I've signed up to the free month one with experian and I've also done the Noodle one but every month it's still not going up. I have no debt I'm on the electoral roll...I don't know what I'm doing wrong?? A friend told me to apply for a high interest credit card and spend a little on it each month and pay off in full but I'm worried if I apply for one it'll get rejected and I'm back to square one?? I'm trying to get a mortgage and have the deposit sat there just can't get the credit for one......any advice would be greatly appreciated??

Thanks ��

Tixy

What actually shows on your credit reports (the detailed account data no tthe scores)

At a guess your old debts still show on there and show that you defaulted on them but show that they have been paid off.

Each credit account will stay on file for 6 years from the default date shown on the individual account on your credit file.
If any account doesn't have a default but does show missed payments then this will show on file for 6 years from the date the debt shows as settled.

Whilstever you have the old bad credit history still visible to lenders you will be viewed as high risk, and likely struggle to get accepted for credit.

A subprime credit card is a good starting point to start building up a positive credit history and demonstrate you can now handle credit responsibly. You could try applying for one, if you are rejected then its not really a big deal, just leave it a few months and then try applying again.

In terms of a mortgage that could be a little way off yet, depending on how recent the defaults on your file are. It is possible to get a mortgage with settled defaults on file but you will generally need a larger % deposit and expect to pay a higher APR. Speak to an independant whole of market mortgage broker with a copy of your credit files .

chrisuren

Wouldn't bother with Experian (or any other credit checker) the companies that check your credit (Banks etc) use a completely different system and scoring method, so essentially experian isn't worth bothering with.

A pretty good way to boost your credit rate is ironically to get credit, but affordable credit (A credit card for eg) I've got 2, but never use them for anything more than £5. That way at the end of every month I've only got to pay £5 on each and it shows to lenders you're responsible with credit and are good at paying it back.

maybe this could work for your situation?

Nicwilson

It does have lists of all the credit I've had in the past but says £0 and settled but there's nothing else on there.

Think I'll just risk getting a high interest credit card from the recommended ones on here...think it was Barclays, and see what happens.

Thanks for your advice ��

Tixy

You need to look at the detailed credit history of the settled accounts. It will almost certainly show evidence of your past issues with credit.

Nicwilson

Ps. I've only recently moved into a new house...5 weeks....should I wait until I've been here another couple of months before I apply??

Nicwilson

I already know my past issues with credit....I was young and stupid and never paid my bills!!!

Tixy

Nicwilson wrote: »

I already know my past issues with credit....I was young and stupid and never paid my bills!!!

I mean it will be visible to potential lenders. So they will consider you high risk.

In terms of moving addresses - then presumably your credit files don't show you as being on the electoral roll at your current address yet?

Nicwilson

I've registered as soon as I moved in so unsure

Tixy

Nicwilson wrote: »

I've registered as soon as I moved in so unsure

It may well not be showing with the credit ref agencies yet - but you'll see either way when you look at your files.

I would wait until you have seen the credit ref agencies do have you on the e/r before you try to apply for a subprime card.

Nicwilson

Thanks alot