My plan of action for better credit

HarlowC

I was over eager to build my credit as fast as possible I ended up applying for too many credit products, and now realise I've temporary damaged rating.

I'm taking a step back and I won't be applying for anymore credit until at least Sept 2017, which will be car finance after hopefully starting my new job by then.

I have a credit card, a store card, a mobile phone contract and a few catalogue accounts and a current account. All of these are up to date with no missed payments. Overall utilisation ratio is around 15-16%.

My plan of action over next 12 months;

1. Continue to pay all bills on time. My credit file needs more time and consistency. Oldest account is only 2 years old.

2. No more credit applications.

3. Keeping low balances and not exceeding any credit limits.

4. Being realistic and living within my means.

This will enable me to save for things I want and maintain the ability to pay bills on time without financial difficulty. I intend to use my savings account to save for a car deposit.

5. Lastly, a little note to self: Always be positive and believe in a good financial future for yourself.

Thanks all, any other advice would be appreciated.

Harlow

[Deleted User]

Remember to clear your credit card balance in full each month.

Ben8282

Apart from the negative of the low average account age, there does not appear to me to be anything wrong with your credit situation and nothing that time will not improve.
Do not close any accounts. Remember, a one year old closed account will stay on your credit report as a closed one year old account for six more years.
Although zx81's advice to clear cards in full each month is excellent advice and I second it, it is not an absolute necessity for the purpose of improving credit rating. Your utilisation ratio is already very low. Although I am absolutely not encouraging you to get into debt. a moderate increase in the utilisation ratio (especially if at 0%!) would not do any harm.


On the subject of savings accounts, if you are planning to save a substantial amount make sure you save it somewhere where it pays more than pathetic% interest.