Credit Score Not Improving

Yazmina

My husband has had quite bad credit with lots of small unpaid debts like mobile phone contracts with unpaid final bills. He's cleared a lot of these things but still has a student loan and a debt consolidation arrangement with a company called Moorcroft. He's been paying Moorcroft for about two years.

However his credit score is still only 'fair'. He applied for a credit builder credit card and was turned down. He's on the electoral roll. Is there anything else he can do to build his score up to 'good'?

Thank you!

Debtfree2018_2

Hi Yazmina

I'm no expert but I think age, being on electoral, no court judgements And clean accounts will help to build up a good credit rating.

Would him getting onto your credit card help?

poppasmurf_bewdley

If any of these debts, or the arrangement with Moorcroft, appear on his credit record, then his 'score' will be bad, not that a 'score' means anything anyway.

But if he's got these debts, the last things he needs to worry about is his 'score'. He needs to sort out his current debts before fretting that he can't get any more.

Pixie5740

If he's paying Equifax or Experian for this "credit score" then get him to cancel the subscription straight away. Neither of these companies lend money so any arbitrary score they generate is like a broken pencil....pointless.

Debtfree2018 has suggested making your husband a second card holder on your credit card account. This would make absolutely no difference to your husband's credit file as the credit card account only shows on the principal card holder's credit file.

As your husband's credit file is in bad shape you do not want to financially link yourself with him through joint accounts. If you're already linked then your credit is probably down the pooper too.

If your husband has been declined for a credit builder card then it's likely his credit file isn't fair but poor in the eyes of those who actually lend money. It'll take 6 years for any defaults to drop off his credit file so it sounds like he's already doing all he can. He just needs to keep repaying his debts and being on the electoral register certainly helps.

What's this debt consolidation thing with Moorcroft? Is it like a DMP? Maybe he should have chat with Step Change.

Yazmina

I don't know if the agreement with Moorcroft is a DMP or an IVA (nor what the difference between the two is!)

I agree that adding him to my credit card would be detrimental. I've never heard of Step Change. I'll ask him to check them out.

Any further advice would be welcome! Thanks.

Powered_By_Pies

He'll find that for the 6 years after sorting out the bulk of his debts any defaults will stay on his credit file which will be why it won't change much.

I'd also highly, highly recommend he doesn't apply for any more credit cards for the next 6 months or so. If he starts to apply too many times in a short period it can have an adverse affect on his score as lenders can see previous applications to financial institutions which will lead them to believe - rightly or wrongly - that he's in financial problems and wants a quick-fix solution. Basically he's a high risk to any reputable lenders as they can't see any guarantees they'll get their money back.

It's a frustrating position to be in, I'm in year one of 6 for almost all the defaults I have on my credit file and I know there's zero point in even trying to apply for a credit card of any form. Funnily enough though I've been 'specially selected and pre-approved' for one of the uber-high rate credit builder cards that's knocking around. Learnt my lesson the last time, thank you very much!

theerroll

There is a company who offer a pre paid master card with a credit builder facility on there. I think its called APS cashplus (i think) they loan you just over £50 for a year. And if you pre load the card it is impossible to miss a payment. I did thia and within 6 months of having it I was being accepted for credit building credit cards. I still have 3 defaults on my account yet have mainstream credit cards with very good interest rates. It is well worth doing in my opinion.

theerroll

It was a few years ago when I used it.

sourcrates

Yazmina wrote: »

I don't know if the agreement with Moorcroft is a DMP or an IVA (nor what the difference between the two is!)

I agree that adding him to my credit card would be detrimental. I've never heard of Step Change. I'll ask him to check them out.

Any further advice would be welcome! Thanks.

A DMP is an informal arrangement between you and your creditors to repay your debts at a lower amount than per the original agreement.
An IVA is a regulated arrangement set up via an insolvency practitioner and your local court, and is a legally binding arrangement to repay your debts at a lower amount than per the original agreement, I suspect you would be aware of the existence of this option.


Why does he want a credit card anyway ?
Its just a path to more debt in my opinion, why not pay cash, and/or use a debt card, and live within your/his means ?