Improving Credit score project

Laskan

Hey there

Apologies for a long post and if some bits are irrelevant. I figure the more info I can throw at you guys the more helpful you might be.

Brief history:

My partner had a child bank account, which turned into some kind of adult version, noncredit scoring account. She never used the bank for anything and just lived off the cash each week. She lived with her mother at the time, if she needed anything done through a bank it was done via her mothers accounts.

Then we met 5 years ago, fast forward a few years(about 3.5ish) and I decided to sort this bank account situation as it seemed a ludicrous way of doing things.

She had absolutely no credit record, had never been on the electoral register and essentially was a ghost.

Fast forward 15 months to today:

On the electoral role.
She has a current account, her salary is paid directly into that account. (New employer, much bigger salary, paid electronically)
I (via her) took out a monthly phone contract and a barclaycard initial credit card(700 limit) to improve her record.
This soon escalated to a barclaycard freedom rewards (5000 limit) and a Amex British Airways card (4500 limit).
Both paid in full monthly.

Things are going well so far.

According to credit expert, the 2 negative points on her credit record are:
1) No settled accounts
2) The age of her accounts is only 14 months. (Obviously there is nothing we can do about this apart from watch it increase)

So my questions:
1) Should I take out a small loan for something we intend to buy anyway and pay it off. So she has something settled on her account?
I was thinking a 0% APR Sofa from DFS or similar. Maybe over 3 months. (We need a new sofa anyway)

2) Approx what "age" should she/we even consider mortgage applications? (We are at least a year off of this anyway)

3) Is there a ceiling on her credit card limits? Presumably there is some kind of basic rule of thumb? 3x monthly salary for example?

4) Is there a point where you just accept your score is as good as it can get? Is a "Perfect" score even possible? (I'm talking about a credit expert score)

Many thanks in advance!
Be gentle its my first time :j

DCFC79

Ok first off get it out of your head that the credit score is of any use as its not, there's more than 1 credit ref agency for you register with and which lenders can use.

Its all about running your/her accounts really well.

Laskan

DCFC79 wrote: »

Ok first off get it out of your head that the credit score is of any use as its not, there's more than 1 credit ref agency for you register with and which lenders can use.

Thanks for answering my questions and generally helping me to improve my general worthiness of credit.

DCFC79

Laskan wrote: »

Thanks for answering my questions and generally helping me to improve my general worthiness of credit.

Its all about patience, if she can be careful with her money eg not be late with the credit card payments, don't go overdrawn on the bank account then it will help.

Taking out a 0% deal for a sofa might be a good idea. I would also get her to register with the other 2 reference agencies.

Is her phone contract in her name ?

Laskan

Hi

Yup, took out the contract in her name.

The plan is to manage everything perfectly. Trying to build the "perfect" record.

So my questions:
1) Should I take out a small loan for something we intend to buy anyway and pay it off. So she has something settled on her account?
I was thinking a 0% APR Sofa from DFS or similar. Maybe over 3 months. (We need a new sofa anyway)

2) Approx what "age" should she/we even consider mortgage applications? (We are at least a year off of this anyway)

3) Is there a ceiling on her credit card limits? Presumably there is some kind of basic rule of thumb? 3x monthly salary for example?

4) Is there a point where you just accept your score is as good as it can get? Is a "Perfect" score even possible? (I'm talking about a credit expert score)

[Deleted User]

Answers below.

Laskan wrote: »

Hi

Yup, took out the contract in her name.

The plan is to manage everything perfectly. Trying to build the "perfect" record.

So my questions:
1) Should I take out a small loan for something we intend to buy anyway and pay it off. So she has something settled on her account? No
I was thinking a 0% APR Sofa from DFS or similar. Maybe over 3 months. (We need a new sofa anyway)

2) Approx what "age" should she/we even consider mortgage applications? (We are at least a year off of this anyway)
When you are ready to buy.

3) Is there a ceiling on her credit card limits? Presumably there is some kind of basic rule of thumb? 3x monthly salary for example?
Not really. It varies according to income and lender criteria.
4) Is there a point where you just accept your score is as good as it can get? Is a "Perfect" score even possible? (I'm talking about a credit expert score) It really doesn't matter. Your score can be anything it wants to be, but no one will ever see it.

Laskan

Thanks ZX81.

So, presumably you think having no settled accounts isn't necessarily a bad thing?

Credit expert believe it is. Having done lots of reading on here, I'm well what credit expert think and what lenders think are 2 completely different things!

Thanks again

[Deleted User]

Settled accounts is irrelevant. Good credit behaviour is what is important.

If you don't need loans, don't take out loans.

Laskan

Perfect thanks!

I wonder why credit expert deem them important then.

I guess the only people that can answer this are credit expert themselves hehe

Thread can be closed, extra thumb up for Zx81!