Credit file help

thebritishbloke

nicd1981 wrote: »

I've never even had a credit bloody card !

That's not a good thing when applying for a mortgage. How is any lender supposed to see if you're reliable at making regular payments if you've got no history to show for it?

nicd1981

I've never been able to get one, applied about 2 years ago to try and consolidate the debts I had , small loan 2k, payday loan of 250 and few other bills I never knew I had (from old address ) etc but was turned down. So I have paid back all my debts monthly for last 2 years and in July paid my final payment.
Like I said, thought once I was debt free I'd see an instant improvement to credit score etc (I know everyone says they don't matter )
But hasn't changed from when I had debts to now having none.
Scared to apply for anything though as know I'll probably be declined, and this will look bad
Hoping in 6 months if I've been paying credit builder I'll see improvements
Nic x

thebritishbloke

As Thrugelmir keeps saying, time is the only thing that can heal a damaged report. Just because your debts are now repaid doesn't mean that every lender wants you. You need to prove to them that you're actually reliable now, and that you're not likely to default on any new borrowing. The way to do this is with a credit card and paying it in full every month.

As for getting a credit card, as it's not been very long since you had your last default settled I'd just give it another 6 months or so, then try and apply for a Vanquis/Aqua/Capital One card. Then pay that in full every month and in a few years you should be set for a mortgage (and in 6 years time, so long as you're still paying off your credit cards and all other debts, you should be able to get any credit products you require).

nicd1981

Thanks guys,

Guess I've managed this long without owning my house another 2-3 years won't kill me.
I've not got a deposit yet anyway lol
I'll dig my heals In an keep saving , hopefully get that credit card and get something like my petrol on it each month then pay in full
Thanks again for all your advice
Nic x

Dobbibill

nicd1981 wrote: »

Thanks guys,

I'll dig my heals In an keep saving , hopefully get that credit card and get something like my petrol on it each month then pay in full

If you set up a D/D to pay the minimum every month without fail, that way even if a hiccup happens on the day it's due there will never be an opportunity for the C/C company to put a late/missed payment on your CR. You can always top up the minimum manually so it is paid in full. What you want to see is lots of green dots on your CR :T

DB

thebritishbloke

Dobbibill wrote: »

If you set up a D/D to pay the minimum every month without fail, that way even if a hiccup happens on the day it's due there will never be an opportunity for the C/C company to put a late/missed payment on your CR. You can always top up the minimum manually so it is paid in full. What you want to see is lots of green dots on your CR :T

DB

Preferably have a DD set up to pay it in full, because what ends up happening for some people is they just pay the minimum, and fall back in to the borrowing trap.