Rebuilding my credit score

hipsdontlie

Hi, my first post here so I hope i'm putting it in the right place.

I recently decided to check my credit report and whats on there recently and found I have a really low score, I've googled around a lot and there is a lot of information out there and some of it contradictory so thought I would ask here as I could just end up googling my life away.

I have one defaulted account for £70 from 3 mobile from 3 years ago but lowell owns the account, from what I understand it is very hard to remove a defaulted account whether it is settled or not, as it is a low amount is there any way to get it removed?
If there isn't a way to get it removed is there much point me paying it to settle the account as in, if I wait 3 years will my credit score still be the same if I settle the account or not as it will disappear?
If it IS better to pay it off should I wait until I receive one of their 50% off letters and then pay that? Will that then start the 6 years again so that it would be another 6 years until the debt is statute barred?

I've read elsewhere to improve my score I can add myself as an authorised user to someone else's credit card in my household (but not use it), does this work? And does it improve it much?
I'm thinking about taking out a credit card in the future just to increase my score, does it matter what one I get, i'm guessing I should get a pretty easy one so it actually passes the credit check?! or is a pay monthly sim a better option than a credit card?

One last thing I am not on the electoral roll as I have been good recently but I have a debt from last year I really don't want to catch up with me, especially not now. Is not being on the electoral roll what has given me such a low score?
The debt from last year has sent one letter to my address which I avoided and not got a letter since, if I register on the electoral roll will that give them more imperative to come after me?

Thanks so much!
:money:

sourcrates

Hi,


Welcome to the forum.


The first thing you need to know about credit scores, is that they are a completely made up number, and are not a reflection of how creditors view you.


The credit reference agency's make up this number based on how THEY view you, not on how lenders may view you.


Its credit History that is important, how you conduct your financial affairs, any defaulted account, will vanish from your file, 6 years from date of default, regardless of if its paid, settled, or partially settled.


You should be on the electoral role as well, but you cant have your cake and eat it, if your dodging debt collectors your credit file will reflect that fact.

hipsdontlie

So is it better for me to settle the account now? Will it rebuild my score in the next few years or will the score be the same when it vanished off of my credit history?

Bubsie

Hi there
I'm new to this forum too, but from what I can gather a settled defaulted account will look better on your credit file than an outstanding one. It shows that you're capable of paying credit back...,which will go a long way if you're hoping to get more credit.

I also don't think being a second card holder on someone else's account will help you. I was a second car holder for a long while on my dad's Barclaycard (really just in case of emergencies, as I couldn't get my own) and it doesn't even show on my credit report. Presumably as its all in his name, not mine, and he's taking responsibility for me. So, I wouldn't bother with that.

Good luck!
B

hipsdontlie

Okay thanks!
I worn bother with that then as it's a big ask to go on someone's card, three years is also a long time so I will pay the amount if I get a good discount, knowing me I won't get a letter for ages!

Also if that other debt is going to pursue me they will. There's 5 years left on that a who knows what will happen in the futute so I will sign on the to electoral roll and see what happens...

poppasmurf_bewdley

All being linked to someone else's credit or debit card will do is lower that persons credit rating to your level, not raise you to their's.

hipsdontlie

Jeez I'm glad I didn't do that then! Thanks!

Pixie5740

First of all forget any credit scores made up by the credit reference agencies, no lender sees them never mind uses them. These scores are just marketing tools designed to encourage gullible twits to sign up for more products and services from the credit reference agencies.

Secondly, credit cards have a principal card holder and that is the person legal responsibly for the credit card debt. The credit card account is only reported to the principal card holder's credit files. The principal card holder can create as many secondary card holders as they like but the credit card account will not be reported to the secondary card holder's credit files, nor will it financially link the principal card holder to the secondary card holder because it's not a joint account. So someone making you a secondary card holder on their account will not make one jot of different to your credit files.

poppasmurf_bewdley

Pixie5740 wrote: »

First of all forget any credit scores made up by the credit reference agencies, no lender sees them never mind uses them. These scores are just marketing tools designed to encourage gullible twits to sign up for more products and services from the credit reference agencies.

Secondly, credit cards have a principal card holder and that is the person legal responsibly for the credit card debt. The credit card account is only reported to the principal card holder's credit files. The principal card holder can create as many secondary card holders as they like but the credit card account will not be reported to the secondary card holder's credit files, nor will it financially link the principal card holder to the secondary card holder because it's not a joint account. So someone making you a secondary card holder on their account will not make one jot of different to your credit files.

You are, of course, correct, Pixie.

I was confusing being a secondary card holder with being a joint account holder. Apologies to the OP! :eek: