Improving credit rating

stokelady

Desperate to improve my 'poor' credit rating, would like help with the following questions -


* - I have 4 CCj's one is due to drop off my file in 3 months and one in 5 months, will I see an slight instant improvement in my score as these drop off or will it remain the same due to the other two still on there?


* - The remaining 2 CCj's are for small amounts (less than £500 combined) will it improve my score at all if I pay them and get them satisfied?


* - I have just applied for a couple of catalogues and a subprime credit card. The Credit card was declined but was accepted by the catalogues (2 x £125 credit limits) how is it best to manage these to help towards my score? Am I best buying something small most months and clearing balance, or making a few smaller payments? what will reflect best on my credit report?


* - If I manage the catalogue accounts well over the next 6 months is this likely to help me when I re-apply for a credit card (I don't want credit but want to use it to improve my rating)


I'm desperate to buy a house with my partner (who has an excellent credit rating), I accept it will take time to get to this stage but want to do anything I can in the meantime to improve my chances of eventually getting a joint mortgage.


Any other ideas, greatly appreciated.


Oh and just out of interest - when I applied for the catalogues I wasn't given a credit account automatically despite asking for one, so I emailed them asking them to re-consider a small credit limit and they obliged !! which I thought was very odd - Next on the other hand said no :-( I'm guessing it isn't worth a call to the CC company asking them to re-consider?

The_Boss

You don't have a "credit rating" or a "credit score", let alone something able to tell you it is "poor".

So I can't offer any advice to improve the non existent score, but regularly spending on the catalogue cards and then paying them off on time would be the best strategy and let time rebuild your credit worthiness. I say pay off as I assume the interest is high, but you should at least make the minimum repayment. You can set up a direct debit to take this but remember to make the first payments manually until you see on your statement that the DD will collect.

If you satisfy the CCJs, you will have a marginal improvement to your credit worthiness, albeit very little as you will still be seen as a major risk by all but the sub-prime market. What is the date of default for these CCJs?

So CCJs dropping off don't really matter in terms of a "score" - best to apply for the sub primes after all CCJs drop off.

Tixy

If you have unpaid CCJs then you will struggle to get even subprime credit cards.

I would suspect that your ability to get credit won't improve much after the first 2 CCJs drop off if you still have 2 unpaid CCJs on file. Paying them off would certainly look better and should improve your chance of getting a subprime card.

I wouldn't use the catalogues in the same way as you would a subprime card (i.e. buying things every month on them), but you could buy some items and then repay them.

How long until the second 2 CCJs drop off?
Were you thinking of applying for a mortgage before then?
Or waiting until after they have dropped off but hoping to have a bit of positive credit history on file by then?

stokelady

26 months left until the final CCJ drops off, was hoping I wouldn't have to wait that long if I can improve my credit report enough in other areas, had a mortgage over 20 years ago and fell off the property ladder, rent now, but back then I managed to get a mortgage with high street bank with 1 CCJ if I remember correctly.

The_Boss

stokelady wrote: »

26 months left until the final CCJ drops off, was hoping I wouldn't have to wait that long if I can improve my credit report enough in other areas, had a mortgage over 20 years ago and fell off the property ladder, rent now, but back then I managed to get a mortgage with high street bank with 1 CCJ if I remember correctly.

Things were very different in years gone by. Mortgages could be approved by bank managers. That's not the way it is any more. A CCJ is a huge alarm bell to a lender, and rightly so.

You also have to consider that a question on your mortgage application form may be "Have you ever had a CCJ?", and while they would have dropped off the report you still need to answer this truthfully. Having done so, it probably rules you out straight away. May be best to get a mortgage in your partner's name if his credit worthiness is deemed suitable for the mortgage.

One last thing - I note that CCJs seems to have been a frequent occurence and I'd strongly consider limiting the amount of credit you have available to you in case of getting into difficulties again.

stokelady

I was foolish with money when young as are a lot of people, and I got into financial difficulties again upon the break up of my marriage, sometimes relying on credit to keep a roof and food. I've since managed to progress in a good job and recently embarked on a new relationship.

I am now looking to 'right my wrongs' and considering ways in which best to help myself. I have very limited credit available to me, in fact I only have the couple of catalogues I recently obtained and whilst I am not looking for any immediate credit, I would like to be able to get back on the housing ladder asap.