My credit rating - Is it improving?

creditbuilderlee

Hi all,

So,

I did have a pretty bad credit rating after I lost my job. Things got a little out of hand.

Prior to this I could get credit for pretty much anything I wanted and had Credit available on Credit cards of up to £35000 (unused ill add)

Cutting to the chase.

I now have personal agreements with creditors and on my Experian credit summary I have 4 open agreements with all green boxes.

1 current account, 2 catalogues with an increasing balance and a phone contract.

I have a default with an AP with a balance of just £35 which will be satisfied in 1 month,

I have just been credit checked for a new house to rent and got it but struggle with anything else but Im not searching as I don't want searches on there.

Does this sound good or better?

Im trying to build it up as best I can.

Any more tips?

thebritishbloke

2 catalogues with an increasing balance

You don't really want an increasing balance to show responsible borrowing, you want to show you can afford to pay it back.

Get a credit-building credit card such as Vanquis, use it for your normal shopping, or use it as a fuel card etc, and set up a direct debit to pay it off in full every month.

DalePie

creditbuilderlee wrote: »

I have a default with an AP with a balance of just £35 which will be satisfied in 1 month,

I have just been credit checked for a new house to rent and got it but struggle with anything else but Im not searching as I don't want searches on there.
Any more tips?

You'll struggle with an unsettled default on your account and you'll not be eligible for 0% cards until that default falls off (Happens 6 years from the day it was first Entered)

The best deals (Card Wise) tend to go to people with decent salaried incomes that have a long history of maintaining high balances and being adult enough to not max everything out. That kind of history as you might expect takes a few years to work up to. First come the Vanquis / Aqua cards, then Cap 1 and eventually Creation cards and ultimately not just mainstream cards but upper mainstream like Amex / M&S / Long 0% deals.

To be honest, you don't need extra credit. What you do need to do is make sure you maintain your personal agreement to pay everything back, as you an see, they are updating with nice green P's so that's as good as you can get.

Just keep going as you are for the next 6 months and you should be okay, it's worth mentioning that the further away that settled default goes into the past then the better lenders will view you.

So it's a waiting game, why are you trying to build it up quickly?

creditbuilderlee

Thanks for the replies.

Let me clarify as I was leaving for work when posting.

The catalogue is just a small gift buyer. I can afford to pay for the stuff as my wages are fine and I pay off the balance in full at the end of every month. It is more for convenience than it is for the credit as its not required.

When I said increasing balance, I actually meant Limit (Was £50, £100 and now £200 etc) The balance is nil at the end of the month.

I have a credit builder card which I pay off every month.

The default balance will be zero but I still have 18 months until it hits the 6 year mark.
However it will be settled/satisfied

thebritishbloke

Just keep doing what you're doing. Once the default falls off your report you should be alright.

4heff

Help!
I cant find on here where to ask a question , so ive added it on the back of here
I hve a new lodger in my home, who was keen to use my address for his bank etc. I now fiond he has a county court judgement on him Now has he used my address I don't know...and if he has what should I do?
Alos how do I view my crdit rating which should be top notch thank yoj xx

thebritishbloke

4heff wrote: »

Help!
I cant find on here where to ask a question , so ive added it on the back of here
I hve a new lodger in my home, who was keen to use my address for his bank etc. I now fiond he has a county court judgement on him Now has he used my address I don't know...and if he has what should I do?
Alos how do I view my crdit rating which should be top notch thank yoj xx

You can get your statutory credit reports from Experian and Equifax. You can also sign up for a free account with Noddle.

Him having a CCJ won't affect you, and he is living in your home so he has to register at your address. Credit reports are based on individuals, not addresses.

If bailiffs turn up, you just have to tell them that he owns nothing in the home as he is a lodger.

creditbuilderlee

Update

I applied for a Capital One credit card to use and pay off each month. I did it to assist in the building of credit after reading about it on here.

They approved me for a card and gave me £200 Credit Limit.

It will be used for fuel and food shopping and paid off each month. (My new girlfriend who im moving in with who is amazing with money and has a superb credit history will be doing my admin so looks like things are on the up.

I have just paid off my catalogue so i have a nil balance again and they have again upped my credit limit (Albeit this wont be used so i may ask for it to be decreased) Is this a good idea?

So it looks like i may be getting somewhere.

thebritishbloke

Personally, I'd close the catalogue account. You're just paying more money than you can get the items for elsewhere.

Set up a direct debit to pay the CC in full each month.

creditbuilderlee

Not really because the more expensive stuff i stay away from and it is purely being used as a credit building tool. I was advised to do this so closing it seems pointless but then i am happy to take advice (Thats why im here)

I know the phones and electronics are more expensive but Most of the stuff i use it for is price matched stuff and were only talking small purchases of which i pay off in full after a couple of weeks anyway.