Terrible credit score! :-(

wideboy09

I got a experience credit score tonight and it was only 377. I had a good few money problems up until 4 years ago and then I've got lots of savings and great with money, don't owe any etc.

How do I go about building this up and how long roughly would it take to become at least average?

[Deleted User]

Doesn't matter. Ignore the score itself.

Just manage your accounts correctly. Use a card regularly, pay in full each month. Get on the electoral roll, don't miss payments, stay under limit.

DCFC79

Zx81 has already said what needs to be said.

wideboy09

Thanks, so I'm well on top of all my payments and have been for a good while. All my direct debits are paid out of my current account. Are you saying I'd be better off getting a credit card and paying all direct debits with it and then paying credit card off in full from my current account? Or even just 1 small bill?

[Deleted User]

Either. Just something to demonstrate that you can handle credit.

wideboy09

When I look at my credit statement for each card it tells you wether you're on track or have fallen behind each month. It doesn't actually have the sums of money etc.

So would getting 3 cards to pay 3 separate bills not look better as I'm getting lots of months where I've paid in full?

[Deleted User]

3 wouldn't achieve much more than one.

If you've not had a card before, just start with the one. Don't go making multiple applications, as this can be another red flag to lenders.

wideboy09

Ok I'll just start with 1 for now. Does it make much of a differance how much of my bills I pay with it?

Is there any differance between using it to pay 1 direct debit for £20 per month and using it to pay 5 direct debits for £150 per month?

tripled

You can't use credit cards for direct debits. Direct debits are fine coming out of your current account. What zx81 is saying is to get a credit card and pay some routine expenses on it (.e.g. fuel, shopping). Pay it in full and on time every month and stay under the limit (basically manage your account well). Also stay away from pay day lenders and make sure you are on the electoral roll.

If your accounts are managed well, gievn time you will build a profile of someone who can manage credit responsibly, and your old problems will become less significant to many lenders. After 6 years they will drop off your file.

Your credit score is just indicative so don't put too much store in it. Each lender has their own criteria and uses your credit record to generate their own score based on what's important to them.

wideboy09

I have looked at my equifax credit report and it has 3 accounts with bad payments etc.

1. The main one a loan which had many bad months of missed payments etc - this was defaulted in July 2012 and I made a partial settlement in November 2012

2. A mobile contract which I believe miss old (I disputed but got nowhere) - I never paid a penny from the start due to this, it opened in August 2014 and then the debt was assigned in April 2015 - it does say settled but says debt assigned next to it

3. The third was a current account opened in 2007, in 2009 I had my only bad months with this as 4 months I was behind, then I had an arrangement to pay until January 2010. From February to June 2010 I was all good then closed it.

Will the first account be removed November 2018? And when would the third account be removed?

wideboy09

I know this sounds terrible but things have changed and I did have multiple accounts run perfect during that time too