Poor credit score, please help improve it (paid off all depts)

jonmariep

Hi guys, im just after some advice please as im really trying to improve my credit score. My score is currently poor despite selling my house and paying off nearly 13k in depts with another £2k shortly. I have joined experium and it was poor as I was selling my house, it moved up to fair once I started paying things off but once I moved it dropped down to poor despite paying off all nearly my depts so a little confused of how it works.
The ultimate goal is to buy my own house again but with pauyday loans taken out and a poor score it isn't looking likely.

I basically lived above my means and spent all the credit available over the last 10years. This year I relocated for work so took the opportunity to sort my life out. I sold my house and have moved into a rented property. With the equity I have paid off the following

Paid of Mortgage
Paid 3 overdrafts totalling £4000, I have cancelled my overdraft on all three accounts.
Paid 3 credit cards totalling £7700, I really want to cut up and close but haven't closed yet as not sure if it will go against my score? like paying off mortgage.
Paid off payday loan £500.
Paid off IFC Loan £800.

only got one loan left to pay, my car loan balance is £2300 and now got the funds together to be able to pay this of to.

Now my score is 634 poor, it did move up to fair when I started paying overdrafts and cards off but it has dropped to poor again, going off my credit expert experium report its because I no longer have a mortgage and a credit check was reported on my file. I assumed if you paid off a mortgage my score would go up but actually drop, then when I was paying off my credit cards online despite having the funds in the bank my card kept declining so I had to call Lloyds and they ran the check on my file and then authorised online payments so I could pay my dept off.

So what I need help with, I have 4 reds on my credit reort.

1)"Your total non-revolving credit balance has not reduced significantly."
What does this mean, I have paid nearly everything off.

2)"the usage of your available credit indicates a higher risk"
3)"your highest revolving credit balance is £500 or less"
I assuming because I have over paid 2 of 3 credit cards they are in credit they have dropped off my report just showing the £500 one I paid off and not over paid.

Now the biggest thing pulling my score down is I have

4)"You have a defaulted or delinquent account"

I missed 3 payments on a credit card then paid a few months then missed another 3 months and they suspended the account. My own fault the direct debit date was 3 days before pay day and I never changed it.. I paid the credit card off £2000 and Its currently £50 in credit, I sent them a message to see if they can unsuspend it as all paid off, and they sent a message back saying I can apply for my account to be reopened but if I fail the credit check the account was automatically be closed. the account currently shows as settled on my credit report.

So how am I best managing this going forwards, do I just close the account, or wait unlittle my score increases and re apply hoping if I get accepted the "defaulted or delinquent account" thing will drop off my score?

going forward am I best closing my credit cards down or using them to build up my credit score, if so how little balances and paying off min payment or just use it once a month and pay full balances every month?

I really appreciate any advise, tip or tricks, many thanks Jon

[Deleted User]

Ignore the score.

Clear the debts.

Ignore the score.

Ue your cards regularly and pay off in full each month.

And ignore the score.

David_White

Ignore the score.

I would recommend reading the thread "what your credit score really means" at the top of the board.

Also...

Ignore the score.

Thrugelmir

Clear your debts then start saving a deposit.

Your "credit score" will improve over time if you simply behave normally and manage your personal finances responsibly. There'll be no need to check it. As what really matters is how lenders view you.