Plain English please!

Single_Woman

I'm trying to improve my credit file & wonder if anyone can put into idiot proof language what the following negatives on my file mean:

"Your highest credit limit on a single revolving credit account is £420.00 or less"

"The usage of your available credit indicates a higher risk"

"Your total non-revolving credit balance has not reduced significantly"

Thanks in advance

LplateSaver

"Your highest credit limit on a single revolving credit account is £420.00 or less" - Your credit card has a low limit which suggests lenders don't "trust" you.

There's not much you can do about that now other than keep your account in good standing, pay off at least the minimum each month preferably pay it in full and soon you should be offered a credit limit increase. It took me 6 months to get offered my first credit increase, I think OHs was 7-8 months.

"The usage of your available credit indicates a higher risk" - You're using too high a percentage of your credit cards etc

I really wouldn't worry about that at the minute. Obviously if your credit limit is low then you're more likely to use a higher percentage of it. I had a £200 limit before it was increased to 1k and I was spending £100-150 a month on it.

"Your total non-revolving credit balance has not reduced significantly"
- do you have a loan/mortgage?

Single_Woman

Thanks, I don't have a credit card. Credit is on a store card & I pay more than the minimum every month & am trying to clear it.

I don't have a large mortgage but do have a bank overdraft which again I'm trying to reduce - could this be the non- revolving credit?

I've read on the forums that advice to increase credit file by applying for credit card which is what I'm considering but will definitely clear balance every month.

Thanks again

LplateSaver

Single_Woman wrote: »

Thanks, I don't have a credit card. Credit is on a store card & I pay more than the minimum every month & am trying to clear it.

I don't have a large mortgage but do have a bank overdraft which again I'm trying to reduce - could this be the non- revolving credit?

I've read on the forums that advice to increase credit file by applying for credit card which is what I'm considering but will definitely clear balance every month.

Thanks again

Yeah I'd try and apply for a credit builder credit card eg Capital One, Aqua or Vanquis. Capital One is the card I started with, can't fault them.

Non-revolving credit means a credit agreement with a fixed number of payments so it wouldn't be an overdraft is there anything else on your file?

bargainbetty

I would try to get out of your overdraft - that can be interpreted as a sign that you do not have financial control and would negatively impact your file.

Try to pay off the store card in full too and then get rid of it. Horrendous interest charges on those things. Once you have a credit card, use it once or twice a month and pay it off in full, every time. Credit builder cards often have high interest rates and it will cost you a lot to maintain a debt on it.

Best of luck

Single_Woman

Non-revolving credit means a credit agreement with a fixed number of payments so it wouldn't be an overdraft is there anything else on your file?[/QUOTE]

I think it's probably my mortgage then or possibly mobile contract which I upgraded in November. They're the only things on my file with a fixed number of payments.

Thanks again:)

Single_Woman

bargainbetty wrote: »

I would try to get out of your overdraft - that can be interpreted as a sign that you do not have financial control and would negatively impact your file.

Try to pay off the store card in full too and then get rid of it. Horrendous interest charges on those things. Once you have a credit card, use it once or twice a month and pay it off in full, every time. Credit builder cards often have high interest rates and it will cost you a lot to maintain a debt on it.

Best of luck

Thanks for the advice. I am trying to reduce my OD every month & my store card & will get them clear eventually.

I will apply for CC & use as you & others advise & hopefully this will improve my file