Improving credit file?

CherryBlossom17_2

Thanks in advance for any advice that can be offered.




I am a married, joint homeowner (mortgage). My husband and I have spent the past 4 years working very hard to pay off a DMP and get our finances in order. We recently paid off the outstanding balance with a PPI refund.


During the time we have been on the DMP, we completely overhauled our attitudes and application with money. We kept up our mortgage repayments after an initial default at the start of the DMP. We have consistently paid our bills, and gradually our income has increased. Our immediate response to going debt free has been to open our first savings account which we have set up a regular standing order into. However, from what I can understand, how we manage our current and savings accounts will have no impact on our ability to obtain credit in the future.




The only thing for which we would like further credit in future is for a potential remortgage - reasoning; we have had to let general maintenance of our home go during the DMP. We have quite a lot of work to do: we intend to replace our windows (seals are gone), complete some garden work front and rear, and decorate all rooms and refurbish the kitchen and bathroom. We moved in 8 years ago and haven't done much at all. We are fairly certain we won't afford to move any time before our children grow up and by then there will be little point! Our savings will hopefully take care of holidays and a new (to us!) car.

So we intend to spend the next couple of years continuing to be sensible in order to reach those long term goals.

I asked at the bank how we could improve our chances and the lady suggested we get an overdraft for £100. I really don't want to do this, I like not having one and I don't trust myself in the longer term to not start living out of it at some point, and ending up in a spiral. Not a risk I feel willing to take. I know it's also popular to get a credit card but again, I really don't want one. It seems you can't obtain occasional credit without already being in debt. Someone mentioned to me you can get a pre pay credit card to charge up and then use for small amounts and this can help.


I'm starting right at the beginning here, we haven't yet checked our files as we're not even sure which is the best agency to check through, or what we should expect to see/ what to look for.


Please could someone advise me on the next best steps for our situation?

[Deleted User]

Mumandhousewife83 wrote: »

It seems you can't obtain occasional credit without already being in debt.

Not quite. More the case that you will not be trusted with significant credit if you can't demonstrate an ability to handle it. You don't need to be in debt.

A credit card is the best (and free) way of showing that you can handle credit - spend regularly and pay in full each month. You could ask for a very low limit if you feel you can't handle the temptation though.