Credit rating

dk28

Hi,

Just after a bit of advise i'm only 24 but 3 years ago i was earning a decent wage no responsibility didn't understand the value of money
now i'm paying the price i have 2 defaults with abbey (santander)
one for 1200 the other 257 i have got them down to 555 and 167
and another with vodafone 600 which iam paying of monthly with DCA's beacuase i was out of work for 6 months so couldn't keep up with repayments and just ignored them


i now have a child earning 25k a year and trying to improve my rating experain says 640 score poor how can i improve my rating i have a capital one card £200 limit spending around £60 a month then clearing the balance. i have defiantly wised up and needed some advise.

thanks

DAn

DCFC79

Don't focus on your score as its worthless.

dk28

what do i need to focus on then?

also 5 months ago i got a EE contract iphone and paying every month DD

thebritishbloke

Just set up a direct debit to pay off your CC in full. Use it for like £50 and let the statement come through and let the DD pay it.

Time is the only medicine.

Moonwax

I was in the same position at the same age, glad you have seen sense too :-)


The best way I did it was use that £200 card for say fuel every month and then pay it off, after a few months they may increase the limit.
Be sensible, use the card if you can to purchase an item as you would have done with cash. Then once home, pay your credit card back.


I was lucky that my job involved travelling so I used mine then claimed back expenses. The £200 in 3 years is now £7500 (but on a much better card) Credit score looks fantastic.


Use it, don't abuse it. Pay it back monthly they hate that so will tempt you by increasing the limit a lot.
Just be sensible and pay off the other debts as early as you can.


Time is invaluable with debt.


Good luck.

RMS2

DCFC79 wrote: »

Don't focus on your score as its worthless.

In the same way that your credit file is worthless.

Moonwax

RMS2 wrote: »

In the same way that your credit file is worthless.

???


Young lad wants to build his credit file to ensure in the future he can open up opportunities, like purchasing a house with a mortgage which needs a good tidy credit file.


Unless this is not true then excuse me............ :doh:

RMS2

Moonwax wrote: »

???


Young lad wants to build his credit file to ensure in the future he can open up opportunities, like purchasing a house with a mortgage which needs a good tidy credit file.


Unless this is not true then excuse me............ :doh:

Notice I said, in the same way. If you think your credit file is important, then so is your credit score, because it is a simple indication of all the factors in your file.


So if it's meaningless, then all the info behind it is as well. Personally I think it is useful, because it gives you an at a glance summary of your file.

dk28

Thanks for info I use £70 a month then pay the balance off

thebritishbloke

RMS2 wrote: »

In the same way that your credit file is worthless.

RMS2 wrote: »

Notice I said, in the same way. If you think your credit file is important, then so is your credit score, because it is a simple indication of all the factors in your file.


So if it's meaningless, then all the info behind it is as well. Personally I think it is useful, because it gives you an at a glance summary of your file.

You're wrong. There are people on here all the time who have 999 credit scores, and get turned down for credit that someone with a 600 score is accepted for.

There are people on here who have zero credit history. They're not even on the electoral roll, and they have "scores" of 600+. How can they score you when you don't have a history.

Lenders never see the score. They take the raw data and calculate their own internal score. The CRA score also doesn't take into consideration income, employment etc.

Basically. You're wrong. Do some research.

dk28 wrote: »

Thanks for info I use £70 a month then pay the balance off

Make sure you don't pay it off until the statement is generated with that balance.

RMS2

thebritishbloke wrote: »

You're wrong. You're wrong. .

Because you say so, so I must be.


Except you are wrong.


There are people with excellent credit files who will get turned down by some lenders because they don't fit their profile customer. And there are people with poor credit files who will get accepted. Lenders interpret the files in their own way, there is no right or wrong. And just the same as the CRAs interpret the file and put their twist on it by giving it a score.


It must be nice and simple, uncomplicated in your world, but sadly wrong.