Building up credit rating

auldboy

Hello all,


In my early student days when I was 18 years old I got myself into a bit of debt. Basically a few credit cards that had £500 limits which being absolutely irresponsible at the time I never paid.


I am now 29 years old and still feeling the repercussions of this.


Getting credit has been a struggle even though now my job means I could afford it. I have my own family now with two young kids so looking to get my credit file onto a good standing.


I applied for a Vanquis Credit Card which I have been successful but still awaiting the card.


I plan to do one or two grocery shops and maybe some petrol with this card each month and pay it off in full so I have no interest to pay.


There isn't much else on my credit file at the moment.


How long using this card responsibly does it start to improve my credit rating? I know ratings are just numbers but obviously other companies look for responsible usage of such cards.


Thanks in advance.

UsetheFORCE

I would say 18 months at least but you will probably end up with a good record with Vanquished which will help!

Thrugelmir

What lines of credit are you hoping to obtain?

sniggings

defaults only stay on file for 6 years, so your bad debt will be long gone.

All you need to do is get some credit history now, as having no history is nearly as bad as having defaults showing.

Make sure you are on the electoral register (you can do it online), get a copy of your files, to see what is on there, then slowly build your history, the card is a good start, then maybe a cheap mobile contract.

Remember, gas and water bills etc show too so they need to be up to date, and anyone who you share any financial links with will be linked to you,so your partner if linked with you could be the one holding you back.

Your credit report will show you all you need to know, so you know what you need to work on.

auldboy

My gas and electricity are paid off fully every time we receive a bill.


I'm on the Electoral Roll too!


Might consider taking out a cheap mobile phone contract too.

Thrugelmir What lines of credit are you hoping to obtain?

This is a long term thing as I'd like to get a mortgage in the next 4 or 5 years. I'm progressing quickly at work so moving up the ladder and will then want to jump on the property ladder.

Tixy

Sounds like its a sensible plan and 4years is plenty of time to biuld up a positive credit history.
In terms of the new card, probably a good idea to keep monthly spending below half whatever limit they offer you.

Thisman321

Try not to apply for too much credit at one time as this can hurt your file, stay within 75% of your credit limits and NEVER miss a payment importantly, if you can over pay rather than pay the required minimum this also helps.

If your a member of the ( overcharged) experian site, they list what's positive and what's negative on your credit file so at least you will know what to work on etc, sign up for a free sample then cancel after the months up.

Rrushi_Shqiptar

Not all utilities report, British gas do. EON do Thames water don't.
The card will start to have some benefit to your file after approx 10months when they have a chance to see a pattern of payment. Never miss a payment, set up DD for minimum or full balance if you can afford it.

I started this challenge in April 2014 I had some errors which needed chasing after that it was just building a pattern of spending and repayments.

Be aware that your current account will also show on your file and how you maintain it.

Good luck

Herbalus

Rrushi_Shqiptar wrote: »

NNever miss a payment, set up DD for minimum or full balance if you can afford it.

I would suggest that if you can't afford it, you probably shouldn't put it on a credit card...

Overspending is not the way to boost your credit file. All you need is a history of spend, pay back on time, spend, pay back on time.

auldboy

Thanks for all the advice - much appreciated.

I'm going to use it to get some groceries per month and set up a direct debit to pay the balance in full.

Hopefully things will improve over time doing this.

Ultimately would like a normal credit card but pretty sure this will take a couple of years using this Vanquis responsibly.

Again, thanks all.