Bad credit rating - advice

cgrayx

Hiya,

I have a really bad credit rating - Noddle says '1/5' and a score of 496.

This is well deserved. I have 3 defaults on my credit file - two of which have been paid off and one which I have a payment plan for. I plan to clear the last one by the end of the year - although, they still stay on file for 6 years.

I am 24 years old and I need to start putting things into place so I can improve my score before the defaults expire. I seriously doubt I will get a store card - I have 3 direct debits through a Halifax EasyCash card (I applied to upgrade to a current account, but it is looking unlikely). These were started recently and there haven't been any late payments - Motorbike insurance, Mobile Phone Contract and Gym Membership - only months old.

I am on Disability benefits and receive approximately £1,000 per month.

So, I figured that the best way to increase my credit rating for the time being is to get a Credit Card for people with bad ratings... I was in the midst of applying, but then it asked my household income - which is more than £50,000 but that is my parents.

I don't want any record of me applying for a credit card attached to the house or parents - in fact, I don't particularly want them finding out at all as it is my financial business and not there's - and thus I couldn't provide proof of their income.

I am looking at these Varquies credit cards and they look somewhat promising - I just don't want to risk a credit search for a decline.

Can anyone give me advice on:

1) Why do they ask for household income and will it affect my parents at all or the address and would I need to provide proof of theirs

2) Do you think the credit card (as long as I follow the obvious guidelines of paying off before interest) is a good way to increase my credit rating?

3) Can you think of any other easy ways of increasing my credit rating?

I want to advance with my life and hopefully by the time I am 30 and my credit rating is recovered and I get employed I can sort my self out.

Also, my benefits get paid into my mums account and then she pays them to me? I figured that having DWP on my account statements wouldn't be to my benefit as I am technically a student.

The question here is:

4) to eventually get a current account, they say consistent money going through the bank.

Does it matter if that money (exactly the same) is from my mother via FPI transfer or whether it is from DWP? In terms of how the bank look at it? As I haven't explicitly told them it is benefits

Thanks for your help

[Deleted User]

Some cards based decision on household rather than individual income, Check what their definition of household income is - it should be something which is at least partially accessible by yourself.

Regular use of a card is the easiest way of building a credit history. Spend and repay in full each month.

But ignore your credit score - it doesn't reflect anything of significance and you easily see it going down once you have your card.

Sarasimpson

I am in a similar situation - My Noddle score is 1/5 with the same score of 496 however I don't have anything on mine to warrant this. I have no defaults, no CCJ's. I have signed up for the electoral roll and voting, I have 4 credit cards, a debit card, I pay my rent every single month without fail, I have other loans, I have a landline, my credit card companies keep offering to increase my limit - in fact, I've done everything that I can possibly do to increase my credit score and yet it remains 'poor'. I've never thought about buying before but I suppose its a good job too, as with a rating of 'poor', I doubt I would get a mortgage. I'm just wondering - what the HELL do I have to do to make this better?

[Deleted User]

Sarasimpson wrote: »

I've done everything that I can possibly do to increase my credit score and yet it remains 'poor'.

See the post above yours for enlightenment.

TheDebtinator

Deleted_User wrote: »

ignore your credit score - it doesn't reflect anything of significance.

Just in case you missed it.

TheDebtinator

Deleted_User wrote: »

See the post above yours for enlightenment.

Mine is 522, and I have poor credit. LOL Anyone who believes these numbers is a little naive.

~Beanie~

Your score will increase once the defaults drop off, mine did. I had 3 come off in March this year and since then have been accepted for a 0% credit card and have been able to upgrade my Halifax Easy Cash account to a Reward current account.

DCFC79

Sarasimpson wrote: »

I am in a similar situation - My Noddle score is 1/5 with the same score of 496 however I don't have anything on mine to warrant this. I have no defaults, no CCJ's. I have signed up for the electoral roll and voting, I have 4 credit cards, a debit card, I pay my rent every single month without fail, I have other loans, I have a landline, my credit card companies keep offering to increase my limit - in fact, I've done everything that I can possibly do to increase my credit score and yet it remains 'poor'. I've never thought about buying before but I suppose its a good job too, as with a rating of 'poor', I doubt I would get a mortgage. I'm just wondering - what the HELL do I have to do to make this better?

Send me or Martin Lewis a postal order for £10 and either 1 of us will up your score by 1 way or other.

Lol forget the score, lenders see the raw data as it were, as long as the data is correct that's all you need to worry about.