Tips to Boost Credit Rating

Richard510

Hi,


I'm looking for any tips to help my wife improve her credit score.


After five years of being together and getting married and moving how many number of times due to renting, we are now approaching a period i.e debt free where we can start to save for a house deposit and finally look to buy our own home.


she has always had a bad credit rating due to mistakes she made when she was younger much of these should now start to drop off her credit file and the newer ones I've been in touch with the lenders and set up instalment plans to clear off her debts.


she had a basic account with Santander years ago which is in debit (it should drop off her credit file I guess soon?) so we cant even access her credit files as they ask for debit card details and she doesn't have a debit card.


Ive applied for a credit card for her with capital one so that we can start to show some good borrowing habits and I'm thinking of applying for a basic bank account for her with HSBC as ive heard they are good for people with bad credit.


anyone if you can help me, would be much appreciated as I don't want to make an mistakes and want to start improving her credit score effectively.

Thrugelmir

Simple, act normally. Pay your bills on time , do not use credit more than is actually necessary. Register on the electoral roll every year. Once the debts are clear get saving. Not just for the mortgage but to enable you to meet unexpected costs without borrowing money.

Time is the healer. You won't be able to force the matter.

Harley8

Get a cheap phone contract but put a cap on the bill amount so it remains affordable.. A current regular credit account will prove what her current financial situation is like and make an positive impact.. I personally wouldn't go down the loan or credit card route as any 'debt' will get taken off the amount you will beable to borrow for a mortgage

Richard510

thanks for the insights guys

solentsusie

If she is looking for a basic bank account Barclays and Co-Op are the two recommended on here by MSE.


Try applying online for a general current account for her with Barclays. If she is not eligible for one due to her debts she will be offered the basic account which has a debit card. I was offered this when I had debts and they have been great to me. RBS/NatWest was very good too.


You should also get your statutory £2 reports from each of the credit reference agencies, Equifax, Experian and Callcredit (Noddle which is part of Callcredit is free online). You should be able to apply by post if you don't have access to a debit card. Or you can of course wait until she has got an account.


Once you have these you will be able to see the full extent of her credit problems, remember the scores are meaningless. You will then be able to see how long it will be before she is in a good position to realistically apply for a mortgage.


Having some credit is good as then lenders can see that you are responsible at managing debt. If you have no information on file this can be seen as a negative as a lender cannot see if you are responsible with credit. Get a phone contract or even having utilities that report to the credit reference agencies (paid on time of course!) in her name will help to build her file.


A good credit record takes time to build and the longer it is since she defaulted on her accounts the less it will be taken into consideration if she has built a positive file since then.


As they say, time is the healer.


Good luck.

National_Debtline

Hi

There are some good tips from the others here.

It's also worth looking through this MSE article on boosting credit scores:

www.moneysavingexpert.com/loans/credit-rating-credit-score?&_ga=1.28900284.1431643695.1421326736#boost

James
@natdebtline

Richard510

Thanks again for the information, I have now requested a copy of credit files via post and just waiting for those, will look at applying for barclays online tonight and see what the outcome is...