Can anyone help me with credit file advice?

wiltsandy01

Hi Guys,

Appreciate a lot of what i'm asking is covered elsewhere in this forum but I just want to clarify a few things. I went through a period a few years ago where I got into a debt management plan and fell behind with a couple of payments. Thankfully this was a few years ago and now the DMP (with payplan) is completely cleared (in full ie no deals were done on the balances). I want to build up my credit file but am concerned about the following:

1)I have tried to switch my prepayment gas and electricity meters over to credit, but have been refused. What does ones credit file need to look like in order to get approved for this?

2) My Most recent default looks like it was in March 2011. How serious are defaults and does this mean I cant expect to get any credit until March 2017?

3). I managed to keep one credit card past the DMP and always kept up with paying the balance on it. I now have zero balance on there, and the only unsecured lending I have is from NRAM on my mortgage of about £5k. Should i use this more and pay off the balance at the end of the month?

4). I have a contract mobile with vodafone and have kept up the payments since taking that out 15 months ago. Are there any other methods of obtaining low risk credit I should look at to improve my file?

Also - I know credit scores aren't popular around here but just to complete the picture im at 405 with equifax. I'm obviously trying to build back up to a less embarrassing credit situation. Again, appreciate this is covered elsewhere on the site but If anyone can shed any light on the above I would be extremely great-full. It seems trying to get back on your feet after a recession is likely to stay with you for a long long time!

Andy

[Deleted User]

1) Don't know - but it shouldn't be the hardest thing in the world to get. However, your DMP obviously indicates that you're a high risk applicant.
2) Defaults aren't good, but the older the better. Interpretation varies by lender, but it doesn't mean no credit for 6 years.
3) Yes - using a card regularly and clearing in full each monnth is the best and cheapest way of building a credit history
4) Use your card, as above

Helvetica_Van_Buren

wiltsandy01 wrote: »

1)I have tried to switch my prepayment gas and electricity meters over to credit, but have been refused. What does ones credit file need to look like in order to get approved for this

Quite simply, ask the supplier what you have to do. Or find a supplier that prepared to offer a credit account.

wiltsandy01 wrote: »

2) My Most recent default looks like it was in March 2011. How serious are defaults and does this mean I cant expect to get any credit until March 2017?

Defaults are quite serious; it demonstrates an inability or unwillingness to honour financial obligations. It doesn't mean you definitely wont' get credit, just that it'll be harder to get good credit and headline interest rates.

wiltsandy01 wrote: »

3). I managed to keep one credit card past the DMP and always kept up with paying the balance on it. I now have zero balance on there, and the only unsecured lending I have is from NRAM on my mortgage of about £5k. Should i use this more and pay off the balance at the end of the month?

Demonstrating your ability to borrow responsibly and pay back will only ever be seen as a good thing by lenders.

wiltsandy01 wrote: »

4). I have a contract mobile with vodafone and have kept up the payments since taking that out 15 months ago. Are there any other methods of obtaining low risk credit I should look at to improve my file?

Spend and pay back on your credit card is the main one at this stage; along with keeping up repayments on all credit accounts.

wiltsandy01 wrote: »

Also - I know credit scores aren't popular around here but just to complete the picture im at 405 with equifax. I'm obviously trying to build back up to a less embarrassing credit situation. Again, appreciate this is covered elsewhere on the site but If anyone can shed any light on the above I would be extremely great-full. It seems trying to get back on your feet after a recession is likely to stay with you for a long long time!

Credit scores are irrelevant; only you and the credit reference agencies see it. Lenders do not see or consider them. Let this one go.