Improving my credit rating - advice welcome :)

hiyaimtel

Hello,

So my current situation is:

Credit Card Number 1: £1020 at 34.9 %
Overdraft Number 1: £1500 which is soon to expire from my graduate account currently at 0%
Overdraft Number 2: £100 which is at. 0% also.
Debt to Family: £1040

In a ideal world I would to consolidate my debt into one place, the only place that I can get considered for balance transfer is capital one and as I live in a new build, their application for does not recognise my address therefore cannot find any of my details, which is very annoying!

I would like to help build my credit rating, as within the next 12 months I plan to be debt free and in 18 months hope to be applying for my first mortgage, which is why I need to boost my credit rating which is currently at Fair according to Expedia and Poor according to Noodle.

I was thinking if I got another credit card, just a card for rebuilding credit and spent around £50-£100 on it a month and always paid it off in full every month for the next 12 months will this help build my credit rating.

Or will this have the opposite effect, as I currently have just over £4000 in debt which I am currently paying around £300 a month technically I should be debt free by Feb 2017. So is applying for another credit card and paying that off In full every month really gonna make any difference to my credit rating, or is it best just to concentrate on what I already have.

Any advice, help or information is welcomed!



Thanks

Tel

Thrugelmir

To improve your credit rating. Focus on repaying your debts. What expenditure can you reduce or cut out entirely? May require making some sacrifices in the short term. Be worth it though.

Superscrooge

Paying off your debts will give the biggest improvement to your credit history

MFWannabe

You should concentrate on paying off your debts first to improve your credit rating
Then use a credit card and pay off in full every month once you've cleared your current debts
Then when lenders look at your payment history it will show a good history of paying back debt

hiyaimtel

Thanks! I will cut back and pay off existing debts