Looking for advice/consultation on how to rebuild bad credit file

dollydigs

Hello - could anyone recommend a financial advisor who can advise on rebuilding a bad credit file? I wish Martin offered consultations!

(My file is in a mess, with a score of 250. I defaulted on a credit card at the end of last year, so now I'm going to have a black mark for the next six years, and no hope of getting a mortgage as far as I can see. I only have one other credit card, with a balance of 4000, but I'm 35 and was really hoping to at least have the possibility of getting a mortgage one day in the future. I'd really like advice on what I can do to rebuild, but all of the advice online seems to be for people who can get balance transfer cards, etc, not for people who have really bad credit files...)

Thank you for any thoughts!

[Deleted User]

- Use your card regularly, clear in full each month.

- Clear the default and don't miss any further payments/go over limit etc.

- Make sure you're on the ER, if not already.

- Check all the data on your files is accurate.

- Ignore your credit score.

Fireflyaway

I think all you can do is be careful from now on and let things improve. I didn't know that keeping a low balance on a credit card is important so I do that now. Don't apply for any more credit and be sure to pay stuff on time. I know people say scores are pointless ( still not convinced) and like you i want a mortgage soon but my score went from 94 to 358 in 1 year with good behaviour so there is hope. I plan to use a broker when the time comes. I think the older the default the better and the bigger deposit the better.

Cap_Hero

Slowly build it up, takes a little time for good track record.

Richey_

Mine was 999 with a default. Ignore it completely it's just a marketing con.

We got a mortgage with a default on my credit file, but needed a 15% deposit. It may be easier now, we got ours during the recession. You need either a mortgage broker who deals with adverse credit or to study the banks lending policies. We studied the lending policies, but reading other people's experiences that may not have been the best way, although it worked. Anythings possible, my friend got a mortgage when post bankrupt. I think a lot depends on how much deposit you have and how the rest of your history is.

Anthorn

dollydigs wrote: »

Hello - could anyone recommend a financial advisor who can advise on rebuilding a bad credit file? I wish Martin offered consultations!

(My file is in a mess, with a score of 250. I defaulted on a credit card at the end of last year, so now I'm going to have a black mark for the next six years, and no hope of getting a mortgage as far as I can see. I only have one other credit card, with a balance of 4000, but I'm 35 and was really hoping to at least have the possibility of getting a mortgage one day in the future. I'd really like advice on what I can do to rebuild, but all of the advice online seems to be for people who can get balance transfer cards, etc, not for people who have really bad credit files...)

Thank you for any thoughts!

I doubt that Martin has the experience to provide informed consultation on rebuilding credit which is shot to pieces.

I don't agree with the foregoing posts: Credit rebuilds credit so you need as much of it as you can get. But be careful to avoid getting into the same predicament as before. Go for a variety of accounts and don't put all your eggs into one basket. Here small credit limits are better than bigger limits. For example, instead of one card with a £500 limit go for 2 cards from different lenders each with a £250 limit. In short, two accounts are better than one.

As I stated, avoid getting into the same predicament as before. Avoid taking on debt which you cannot afford to pay back. Lots of people pay off their credit cards every month which allows them to stay within the budget their income allows.

Lastly it doesn't have to be credit cards to rebuild credit, it just has to be credit which is reported to the CRAs. That could include credit cards, loans including Credit Union loans, household utilities, landline phone, mobile phone contract, mortgage, rent, etc.