Doing all the right things - but it doesn't seem to be working

crystal_pixie_2

OK so I understand that scores are worthless but after several years of getting my credit file cleaned up I don't seem to get my score above poor.

So I have done the following based on the excellent advice on here:

1. Removed financial assoicates.
2. Paid off all debts
3. Got myself a sub prime credit card - using it every month and paying it off without fail.
4. Had all anomolies on my credit file removed from all 3 CRAs.
5. Cancelled all unused cards.

I do still have x3 defaults from 2011 - all settled and have been for several years now. I realise they will remain on my record until 2017 but I was hoping that as time has gone on that the defaults will become less relevant.

My intention is to get a good credit card with a reasonable APR and potentially buy a car in a couple of years time. However, I am very nervous about applying for a standard card just yet. I have been using my sub prime card for 6 months.

Any other suggestions? I was thinking about putting a statement on my report explaining that the defaults were due to divorce.

Candyapple

You have 3 defaults that are 3-4 years old, this is what will be impacting your credit history the most, only time will heal this.

Are you on the electoral roll?

Do you have any bank accounts / phone contracts etc being reported also?

I wouldn't waste an application for a mainstream card right now, wait at least another 6 months and even then, chances are you'll be declined. If you do try in 6 months, try and go with one with who you bank with/pay salary into as they will likely have an internal rating for you.

Don't bother writing unnecessary statements on your credit reports, it doesn't do you any favours.

MEM62

You say that you understand that the score is meaningless yet you worry about it. Perhaps you are not truly convinced. Just goes to show the power of the advertising put out by the CRA's to sell their subscription services.

The data on your report is the only thing that it important. Continue to run your finances responsibly and you will be absolutely fine.

crystal_pixie_2

Thanks for the replies.

Unfortunately my bank doesn't do credit cards in the UK yet!

No it isn't the score I worry about but the indication of how it would look to a propective creditor. I use the score as a guide to how things should be improving. My idea was to try for a mainstream card when I see the score improving.

Yes I am on the electoral role and have been at the same property for several years.

I realise that the defaults are damaging my report significantly. I am wondering if it would be best just to wait a couple of years before they come off my report before applying for anything else?

I did think about applying for a UK bank account (I bank with Handelsbanken at the moment) so it can be seen on my report.

Ben8282

You appear to have done the right things except the closing of unused credit cards bit. You would have been able to build up a recent credit history if you had started using them as opposed to cancelling them.
Would be interesting to know what all the anomalies were that you refer to.
You state you have no UK bank account although if you have one of the Handelsbanken accounts shown on their UK website you do have a UK bank account, and if you have an overdraft or one of those mysterious charge cards that you have to apply for by e-mail and there is no picture of, only a visa logo, then they should be reporting to CRA's.
If in fact you really have no UK bank account then you cannot realistically expect to get a mainstream credit card.
I believe the problem is your defaults and, as others have said, only time will heal.

crystal_pixie_2

Thanks for your reply Ben.

I couldn't use the cards I cancelled as they were part of my DMP and Barclaycard refused to re-instate them. Even though they never defaulted me the available credit seemed to remain on all my reports - so I removed them.

I also couldn't get a main stream bank account apart from a basic one when I was on my DMP (which is now finished and paid off). This I think is my next task - to get a main stream bank account.

As for Handelsbanken reporting to CRAs - the only thing they report is hard searches and financial associations. No overdraft but I do have a chargecard.