HELP!! I just don't understand why my credit score is so bad :(

simonjames90

Thanks for viewing this thread ,

My credit score is 533 and isn't going up despite me paying debts off

My total debt is currently £300 for a phone bill dispute and an old over draft

For the above I defaulted on one in March 2011 and the other in 2014 and I'm paying £10 a month back

However to contribute I have £700 to pay off on my credit card which I pay £50 a month on and I am constantly in my 2k overdraft - is this is what's the main cause ?

I need to repair my rating asap please help - any advice would be massively appreciated

Thank you

[Deleted User]

You score is meaningless which is why it isn't reflecting your lowered debts. No one sees it it, no one cares about it.

Continue to pay off your debts and get out of your overdraft.

Dobbibill

Your score is not the big thing you want it to be so don't focus so much energy on it, it really isn't worth it.

Your history determines how future lenders view you. From what you've said you will need to continue to pay off old debt, this will limit your options in the future if it's not sorted.

Being in your overdraft continuously may be perceived by a future lender as actions of someone who isn't able to live within their means. It's also a very expensive borrowing facility.

As zx81 said, continue to pay off all existing debts and pay into your overdraft as much as possible each month to reduce the amount of the limit you are using. Time will then improve your potential ability to successfully apply for credit although this isn't an overnight fix and will take months/years.

simonjames90

Thanks guys. I've got a structure to wipe it all off in the new year... I've just gone from a very low income, being a student to 30k a year so looking forwards and improving my credit.

Shall I concentrate on my credit card more or overdraft thanks again

[Deleted User]

Ideally, I would get out of the OD first. But you also need to consider which is costing you more.

PixelPound

Pay off what costs you the most, I assume the OD is authorised and within its limit?

The way to look at the score is the CRA's have a service they charge for, if they just gave you the raw data it might be less apparent how this changes over time, so they invented a scoring mechanism. It gives the customer something to focus on and something for the CRA's to focus on when selling their products. It is far easier to sell a concept of improving an overall "score" by a monthly subscription than monitoring your CC balances, default ages etc.

Each CRA has its own system and what might make the score go up for one might not for another. Rather than simply aiming to improve a score, you need to focus on the why you want to improve it. If it's because you want to achieve an aim (e.g. better credit card or potential long term credit like a mortgage) then its analysing what is on your report and what you can do to improve your chances of acceptance when the time comes, and not the score.

Thrugelmir

simonjames90 wrote: »

For the above I defaulted on one in March 2011 and the other in 2014 and I'm paying £10 a month back

You earn £30k a year but are only repaying £10 a month. Then you wonder why your credit rating is so bad. Really it's self explanatory.