Conflicting advice - improving my credit rating

MallyGirl

buying on a credit card does give added benefits/protection so it is a useful tool. Get one, keep the limit low, use it every month for something you would have been buying (and can afford) anyway, setup a Direct Debit to pay in full and just let the low value but good behaviour start to populate your credit history (not credit rating, it is all about your actions rather than an arbitrary number).

Crystal_Pixie

Thrugelmir wrote: »

What does obtaining a credit card prove? You've just got yourself clear of debt. Statistically people that start using credit again reoffend. That's human nature. There's no quick fixes to rebuilding a credit score. Only time. The fact that it's your first thought suggests that you haven't fully learnt the lesson and totally changed your ways.

I don't agree - as an ex- "offender" the last thing you want is credit. However, now you need to have a decent credit rating to have a phone contract or change your gas supplier.


I have found having a credit card and putting a small amount on it each month and making sure it is paid is a good way of showing that you can manage credit.

BrandNewStart

Thanks TheShape and MallyGirl. I think you've both understood where I'm coming from. I was thinking in terms of paying for my petrol on it every month - I typically only spend £40-60 pcm on petrol. I could set up a DD to pay it off in full.

TBH the idea of having a CC is stressful in itself! While I do want to build my credit rating back up I am not interested in using it for spending. I am pretty determined and organised with mponey these days but it is nice NOT having the option, if that makes sense.

If I were to try to get one for the above reasons, I think I've got something like a 70% chance of an Aqua card or something similar - last time I checked. No idea if that's good enough odds or not?

BrandNewStart

Thanks CP Good points

Thrugelmir

BrandNewStart wrote: »

Thrugelmir that's quite a lot of extrapolation from one post by someone you don't know.

What's different about you? People are more similar in the way they act and think than you may realise. To some of us finance has been a day job for a very long time. Nothing changes.

mwarby

BrandNewStart wrote: »

Thanks mwarby. Yeah I guess it is for a mortgage one day. I certainly am in zero rush to get a credit card in order to spend money. Why would I want to do that?

Thrugelmir that's quite a lot of extrapolation from one post by someone you don't know.

Imho biggest thing for mortgage is saving a good deposit, and being able to show affordability. If you get a card to prove to lenders you can use credit responsibiliy best to keep usage low and don't carry a balance.

I'd avoid large amounts even if cleared each month, as it's a bigger value in the budget part of mortgage (and you never know what weighting his on, it may not matter that you'd have spent same on debit card.

Blackbeard_of_Perranporth

I went to Nat West once and they told me I could not get a mortgage.

They have not seen my money since October 1999.

BrandNewStart

Thrugelmir wrote: »

What's different about you? People are more similar in the way they act and think than you may realise. To some of us finance has been a day job for a very long time. Nothing changes.

Everyone's the same huh? Read the posts.

sourcrates

Credit cards are the spawn of the devil and should not be touched with a barge pole.
You only need good credit for borrowing, you've got out of debt once, dont fall back into its clutches.

Your credit file will heal itself, the further back in time negative info is, the less effect it will have on you, i assume you have a bank account, your bank reports to the CRA`s how you manage your money, as do some utility suppliers.

Just give it time, and borrow wisely if you must do so, some pay monthly phone contracts can be secured using just a debt card (EE/Orange) for example.

Thrugelmir

BrandNewStart wrote: »

Everyone's the same huh? Read the posts.

Actually no. People fall into distinct groups though. Which makes their attitude and behaviour somewhat predictable. No skin off my nose. Heard it all many times before and will again in the future.