Poor credit score how do i improve it!?

redcard

Moopheus wrote: »

I earn a decent wage after paying rent and everything else I still have about £1,000 a Month left over.

I also want to get a mortgage in the future using Car finance to boost my credit report for this ideally.

You've got £1K spare each month, so you must have some savings?

You're kidding yourself on saying you want to buy a new car on finance to boost your credit rating :T

Moopheus

Well I have £600 worth of deductions that come out of my wages, like life insurance, kit insurance, rent, etc etc etc.

Leaving me with about a 1k left but then I have all my civy stuff to pay for like utilities, TV licence etc etc so it's not like I'm blowing 1k each month on nothing, I'm left with about £100 a week which gets eaten up by food and fuel.

So to be able to buy a Car finance would be the best option as it would take me years to manage to save up for the Car I like, but like I said I'm constantly repairing the one I have which eats at my finances, finance payments would be less than what I pay to keep the Car on the road and having to repair the thing all the time.

Atleast with finance I get the Car I want and I'm improving my Credit Score for the mortgage I eventually want.

optimist68

Moopheus wrote: »

I wouldn't need to get them if I was allowed a Credit Card, it's only ever been for the odd £10 or £20 when I've found myself short, that's disappointing though I thought credit was credit and providing I paid it off on time or early it couldn't harm me.

Don't worry. We're all allowed to make mistakes. It's what you do now and going forward that matters. It'll take time. Just think ahead and focus on keeping your credit file clear.
Go through your file and ensure all accounts are properly 'hard closed'. Then from now on, whatever credit you take out, consider the impact on your file - because you want a mortgage.

optimist68

Moopheus wrote: »

Well I have £600 worth of deductions that come out of my wages, like life insurance, kit insurance, rent, etc etc etc.

Leaving me with about a 1k left but then I have all my civy stuff to pay for like utilities, TV licence etc etc so it's not like I'm blowing 1k each month on nothing, I'm left with about £100 a week which gets eaten up by food and fuel.

So to be able to buy a Car finance would be the best option as it would take me years to manage to save up for the Car I like, but like I said I'm constantly repairing the one I have which eats at my finances, finance payments would be less than what I pay to keep the Car on the road and having to repair the thing all the time.

Atleast with finance I get the Car I want and I'm improving my Credit Score for the mortgage I eventually want.

I model my finances over time using a spreadsheet and I found that taking on finance and part ex'ing my paid up car for a 12 month old Kia with a 7 year warranty, £20 car tax, a great service plan, good fuel consumption, etc., has actually left me better off over time.
I can understand some people suggesting you should save then buy a car, but if you are intending to take out a mortgage in the long term, then you might as well use the car purchase to your advantage. Just make sure you can cater for a rainy day as the saying goes.

My other bit of advice to you is... make sure when you go for your mortgage that you have 6 months or more of bank statements that reflect a lifestyle compatible with a mortgage having at least a 7% interest rate. I had the issue where moving house (hence my recent mortgage application) would result in me saving a lot of money (fuel, childcare) but, the Building Society would not accept future figures (based on me having moved). Their figures have to come from your evidence and not from what you tell them might happen.

redcard

Moopheus wrote: »

Atleast with finance I get the Car I want and I'm improving my Credit Score for the mortgage I eventually want.

Not really. You've got defaults and you're taking out payday loans. You'd struggle to get finance or a mortgage based on affordability.

You'll pay £10K for an £8K car that is worth £5K the second you roll off the showroom forecourt.

You'd obviously struggle to put together a half-decent deposit, so the car finance is hardly going to help with this.

Moopheus

ok then I've made the decision to buy a more reliable Car without finance something will only cost about a grand, my friend who's studying mechanics is coming along with me to make sure I don't buy something that's going to need repairing all the time, so I've completely thrown out the idea of a Car on finance it's a nice fairy tale but the cold fact is it seems it's just not a wise decision.

I've taken into account everything you have all suggested and I'm going to create a spreadsheet and properly sort out my finances, there's clearly something wrong with my budgeting if I'm ever finding myself short at the end of the month, so I think a proper plan will benefit me greatly.

Hopefully in about 6-12 Months I can come back and tell you guys that I have completely sorted my credit file and solved all my issues, thanks again for all the advice

bsms1147

Moopheus wrote: »

Hopefully in about 6-12 Months I can come back and tell you guys that I have completely sorted my credit file and solved all my issues, thanks again for all the advice

I look forward to it. Good luck

greenorange

If you can't afford to put a little away in savings each month at the moment, do not get any more credit. How exactly do you plan to pay it back if you don't actually have the available income?

Work on paying off the remaining default. Once it's paid off and marked as satisfied, you have a 6 year wait before it falls off you credit report. Getting a mortgage with two default on your credit report is going to be difficult.

Once you find you have some money left out of your wage each month and have paid off the default, start saving a little, and eventually apply for a credit building card such as Aqua, Vanquis, CapitalOne or Barclaycard Initial.

Don't get any credit until you've sorted the default and got some savings in place.