Credit rating journey - having trouble reading the map

Thrugelmir

Megano wrote: »

Im looking to improve my credit score so my OH and I can start saving and apply for a decent mortgage.

Once the overdraft is cleared. Then both of you should consider opening Help to Buy ISA's, i.e. one each. As well as the bonus that gets paid , Halifax are offering 4% interest currently.

[Deleted User]

Megano wrote: »

Lloyds don't charge a daily fee its a monthly charge of £6 regardless if your in it for 1 day or 30 plus interest which is 1.53% per month.


The plan was to have a bits and bobs savings account (since Lloyds only allow you to reduce your overdraft by increments of £10) and "round down" my current accounts and then make a large reduction once a month, once I have received my wages from W1, W2 and other instead of making a payment of £10 here and £20 there like I was doing with the credit card.

The red bit is the key bit - you're PAYING nearly 20% per year until it's gone, plus the £6 a month.

The £6 a month fair enough you'll have to pay regardless until you get out of it, but if you can get the balance lower that 1.5% interest charge will be calculated on a lower daily balance - not by much, but it all counts...

The whole point of an overdraft is that it does fluctuate up and down - they expect a £5 payment here and £10 there, along with big sums. To do otherwise is giving them free money.

Certainly echo the Help to Buy ISA though, they are a brilliant idea for anyone saving that hasn't owned before.

Megano

Somerset_La_La_La wrote: »

The red bit is the key bit - you're PAYING nearly 20% per year until it's gone, plus the £6 a month.

The £6 a month fair enough you'll have to pay regardless until you get out of it, but if you can get the balance lower that 1.5% interest charge will be calculated on a lower daily balance - not by much, but it all counts...

The whole point of an overdraft is that it does fluctuate up and down - they expect a £5 payment here and £10 there, along with big sums. To do otherwise is giving them free money.

Certainly echo the Help to Buy ISA though, they are a brilliant idea for anyone saving that hasn't owned before.

The Help to buy ISA is the next thing that's going to be attacked once this damn overdraft is gone!
So do you think Im doing the right thing saving up and making one BIG (£300 - £400 per month) or would you pay make little and often repayments i.e. £10 here, £20 there?