Improve credit Rating

Ben14

Hello I have just finished paying off my 3 bad debts using a debt management company. I had been using them for the last 6 years. Thankfully they are all payed off. There was a default on each account. This has now dropped off as it is over 6 years and the account settled. When I look at my credit score it's very low. But nothing shows on my credit report as its all cleared because accounts settled and it's over 6 years!

What can I do now to improve my score as I hope to apply for a mortgage in a couple of years time?

Thank you

Barny

[Deleted User]

Ignore your score. I can sell you a good score if you need one, and it will be just as useful.

The best way to build a credit history is through regular and sensible use of a credit card, paying off in full each month. Try a sub prime company in the first instance.

Ebe_Scrooge

Your credit score is meaningless. But to increase your credit history, you need to get some credit and show responsible management of it. Anything like a mobile phone contract or ( some ) energy bills will help. Also make sure you're on the electoral roll.


And an easy way is to get a credit card. If your history is currently bad you'll need to look at one of the sub-prime lenders ( see the MSE Credit Card guide ). They charge very high interest rates, but this doesn't matter because ....... what you absolutely MUST do is pay in full, on time, every month, without fail - set up a direct debit to make sure you never miss a payment. Just use it for your everyday spending ( groceries, fuel, whatever ) and pay off in full every month. This will, over the course of a year or so, improve your history considerably.


As I said, lenders don't see your "score". What they do want to see is a history of responsible borrowing and repayment.