What can I do to prepare?

nikongirl

Due to some poor financial decisions over the years, I have a poor credit history and I'm now trying to get everything paid off and make plans to buy a house in about 4 years time.

I have a CCJ from 2012 which I satisfied this morning :T and a CC which defaulted in 2010 — I have a repayment plan in place for this. All of this should be repaid by November 2016, which is when the CCJ expires. Obviously my credit report is pretty much screwed until that point, but I'd like to do as much as possible to improve it in the meantime.

I have up to date accounts with British Gas (Gas and Elec), Barclays and an O2 pay monthly mobile contract which has now run its course. I was going to switch to a Three sim only plan, saving me £150 a year, but will this negatively affect my credit report? ...or will Three just not give me one in the first place?!

Also, at what point would it be viable to start applying for credit-building cards?

Thanks!

matttye

Switching from O2 to 3 won't make a difference.

Could try applying for a credit building card or two now, but if you get rejected twice id hold off on making any more applications for a little while. Just make sure you pay them in full each month so you don't get stung with interest.

Are you on the electoral roll?

nikongirl

Thanks for your response.

I'll probably hold off getting a credit building card until the CCJ shows satisfied (I'm assuming that will help).

I am on the electoral roll (since before the last lot of local elections), although Noddle still shows my previous address.

thebritishbloke

As has been said, switching won't make a difference, it's whether you'll get accepted or not that matters.

They're in the process of doing the annual update of the electoral roll on credit files, so it should appear soon. I'd wait until the electoral roll and the CCJ updates and then apply for a Vanquis/Aqua card. Just remember to live within your means and have a direct debit set up for the full amount.