How Fast Can I Improve Credit Score

8184mand

Hi I am new to the site and looking for some advice or insight on how to quite quickly increase my credit rating. I am looking to take out a mortgage in the next few months, but don't want to do it at the wrong time. I have checked my credit 'score' with experian and it's not very good at the moment. Here is some information:

My 'score' is currently siting at 651 which is 'poor'
I have no defaults or late or missed payments on any of my accounts
I have a number of settled accounts, do they matter?
The main things I have at the moment are:

Mobile phone account

RBS personal loan - £871 a month, there's only 2 payments left to be made on this (will this automatically up my score once paid)

Capital One Credit Card - balance £1000 which I intend to settle and close in Jan (took out Oct) payments are £25 per month

Tesco Credit Card - balance £1400, took out April, still in interest free period payments are £25 per month

Barclaycard - balance £5700, payments around £125 per month

Overdraft - £2700 which I'm reducing by £55 per month at the moment

For the mortgage application, the personal loan and the Capital One Credit card will be paid off before applying. The others I was intending to continue to pay off alongside the mortgage.

I am looking for advice on how I can improve my credit score reasonably quickly. Main issues it can see are 1) various searches on the account particularly around October; 2) New credit taken out in short space of time with the Capital One and Tesco cards. I am sure there are other issues as well but think those are the main ones.

Interested in any thoughts and advice please!

19lottie82

Your "score" doesn't exist. It's a made up number generated by a computer. Potential lenders don't even see it.

8184mand

Sorry I should have said that's why I put the word score in inverted commas, I understand it's not really a real thing, but still it does indicate there are issues which I would like to try and resolve if possible.

8184mand

Oh also I have HP one £25 a month that will be paid before the mortgage app and one at £40 a month that won't

CLAPTON

difficult to add your debts up, but maybe 15k?

are you paying the minimum on the CCs: this would be a negative?

being in an OD permanently is bad news

8184mand

Thanks for your reply, yes permanently in the overdraft but reducing it each month (albeit by a small amount), credit cards paying the minimum at the moment intend to pay the C1 one off in full. I don't know if I need to try and clear off more of the debts before I go about getting a mortgage - obviously the more I clear off the longer to her a deposit together.

Thrugelmir

8184mand wrote: »

I am looking for advice on how I can improve my credit score reasonably quickly.

Repay your debts. And no I'm not being facetious. No one is going to lend you money for a mortgage while you make minimum monthly payments on your debts.

Where's the money for the property purchase coming from?

8184mand

Debts at the moment at about £13k and would be £10.5 at the time I was hoping to apply!

Any ideas on best way to improve things? How much over the min payment on the credit cards would be considered a positive? Will it help that the OD is reducing, should I try and reduce it by more a month? What about the personal loan which is obviously the biggest monthly commitment, will things automatically improve once this is settled?

forgotmyname

The issue is having the deposit is good but. When they see you have debts as much as the deposit then they may wonder if your robbing peter to pay paul.

Spend the food shopping of £200 on the card and stick £200 into the deposit. But you still owe the £200 which will reduce the mortgage available.

Being in your overdraft every month wont look good. Minimum payments wont look good.

Personally i think your a fair way off a mortgage.

8184mand

I am just off maternity leave so haven't been saving or paying any extra to things at the moment. Have been gifted some money from a family member and also have a significant disposable income once all min payments are made which I was hoping to save to add to the money already have.

I could clear the debt quicker, and wait longer to save, but wondered if I would be able to apply whilst paying the debts rather than after.

Definitely what to improve my chances any way I can

8184mand

Sounds like it would be best to pay the debts off first and then start saving again for the deposit.

Do they really need to all be cleared though - I'm sure people must have credit already and successfully get mortgages?