Improving credit score in 1-2 months

glentoran99

your credit rating is irrelevant


Your not getting a loan because you owe 4500 on credit cards and overdraft, have been living beyond your means and have only been employed for a month, no-one (expect pay day lenders) will lend money in those circumstance

gunsandbanjos

TSB are quite risk averse when it comes to loans, until VERY recently you couldn't apply for one if you didn't hold a current account. So it may simply have been you hadn't held your current account long enough for TSB to offer you a loan.

[Deleted User]

I got a loan a couple of years back from Halifax. I was in similar circumstances. I'd had an overdraft since uni - £2000. I took out a loan and paid it back, then paid the loan off over a year (less because I made extra payments). I was only employed as a temp then, now I have a salaried job. So the way they make their decisions isn't adding up.

In any case, I wanted to know what steps I could take to improve my chances of getting a loan when the time comes.

So far I've interpreted these as:
1. Get the council tax bill cleared
2. Stop making applications
3. Pay as much on my credit card as possible


It would be nice if I could magic my debt away but sadly I can't.....

glentoran99

when you say "a couple of years" how long ago are you talking? because rules have changed and lenders have tightened up

[Deleted User]

glentoran99 wrote: »

when you say "a couple of years" how long ago are you talking? because rules have changed and lenders have tightened up

I got my loan in 2014...

granted I didn't have a credit card then - maybe that's made the difference.

Do people agree that it's best to reduce the credit card balance first,then the overdraft?

mwarby

Deleted_User wrote: »

Can it be done?

Realistically no i don't think you can change your credit history significantly in 1-2 months

In my experience creditors update their records once a month, you'd have to fix the issues wait for them to be reported, then get a credit application in

I'd also say that creditors are looking at long term trends, perfect behavior for one month alone doesn't make you a hugely better risk, keep it up for a number of months and years will make you a better rish

mwarby

Deleted_User wrote: »

I got my loan in 2014...

granted I didn't have a credit card then - maybe that's made the difference.

Do people agree that it's best to reduce the credit card balance first,then the overdraft?

This is concerning another loan around a year after paying off old one, your overdraft has gone up £500 and you've got access to £2k more credit. This increase in credit availability and use maybe concerning other lenders, you may look to be reliant on credit

Doctor_Duke

TSB are very picky as others have said and normally won't even quote you for a loan until after 3 months and when they do it's something ridiculous like 29.9%! I suspect Barclays will be equally difficult with seeing six months or so of seeing your salary being credited and conduct of your account. To be honest any mainstream lender when they credit score you won't score you well with a limited banking and more importantly employment history. They are looking for stability. Also for some reason generally although not always it is more easier credit scoring wise to get a credit card than a loan although sadly to say with your circumstances this is going to be a challenge.

[Deleted User]

I went into TSB yesterday - and it was VERY interesting.

They have an internal scoring system, and mine isn't bad at all - I'm a '3' (1 being the top). The girl in the bank was really helpful. She said to come back in two months and we'll assess the situation again - by which time she hopes I will be a 1 or a 2. She thinks it's realistic, as they reassess their data every month.

The main reason that I'm 'only' a C, is because I've gone overdrawn 3 times. On each occasion this has only been by a maximum of £40, and only for a day -sometimes hours. But the very fact I'm even gone into an unplanned overdraft has impacted my internal scoring. She said always try and leave a little bit in there - like £50 or £100 and that will help things a lot.

I opened my account on 23 october, so by April I will have been there 6 months and eligible for a loan, so the question will be how can I ensure I get myself the best rate. She wants me to be a '1'!

She gave me a credit card with a limit of £1250 and said not to use it - or even better, use less than 10% each month and pay it off in full. Having a line of credit and barely using it will help get that score up.

So we're going to see what the numbers are at the end of April, and if I'm not being offered a good rate then wait another month. She's confident based on my salary that I have the ability to repay so is really happy to help.

gunsandbanjos

Sounds like a helpful branch.