Credit card to increase credit rating?

gg2011

Just after some advise if possible

My credit rating is pretty poor but I have no outstanding debts now but I do owe 3k on overdraft (have £3k saved for a house so far is an ISA)
Wondering is it worth getting a credit card for 12 months to increase my credit rating!?

Arleen

So you have oustanding debts of 3k, and 3k savings in ISA. Why not use the money from ISA to pay off the debt, and stop paying interest and fees on it?

Why is your credit poor? Do you have some defaults? Late payments?

[Deleted User]

Why only 12 months?

Use a card as an ongoing means of building a credit history, clearing in full each month.

ashp_2

You need to get out of that overdraft and stay out of it. Your current savings are actually 0

gg2011

To be fair I'm going to transfer the money across now to prevent interest etc.

Defaults unfortunately! (2 to be precise)
i really want a house by end of the year. I've got bonus coming and shares so will hopefully have 17k

Thinking the credit card will help build my credit rating up as it's been the same now for 4 months (clear score)

[Deleted User]

If you're judging your credit worthiness by a CRA score, forget it. Lenders don't use or see their scores.

A credit card is the easiest way to build a credit history, and should be done on a long term basis.

gg2011

Didn't no that thought it was all on numbers etc

Thanks for the advise ��������

DesperateSusan

I got one of the Aqua credit repair cards which get plugged through Noddle.

I have it set up to clear the spend every month by direct debit and don't really use it for much. I had a trip to the USA and put the tickets on the card. I also have it set up as my Amazon payment card. And that's all I use it for.

I started off with a £500 limit. The limit has been increased and is now at something close-ish to £2k.

I have shown that I can have access to credit without blowing the lot, so my credit score is now good.

In regards to mortgages and house buying. I had several defaulted credit cards and a CCj on my file and still got a mortgage. I was completely open and honest with my financial history and took screen shots of my Noddle account to give to the mortgage broker. The fact that I had a clean record for a couple of years meant they were able to lend.

It is worth having a word with broker early on - they can advise on your specific case.

Good luck with everything.

Sue