Tips to improve credit score please

jandk

Hi all

I've been debt free for 7-8 years and have had no credit cards in that time.

I would now quite like one, to improve my credit rating and as a back up - my holiday this year cost £400 more as I couldn't pay for it there and then, whereas I could've paid for it on a credit card then paid that off instead.

My Equifax score (free month trial started today) is only 404. The only credit agreement showing on my profile is my current account which is all green (no loans etc)

Is there anything I can do to improve my score please? Or is there a credit card company that would take me on until my score improves?

Any tips or horror stories gratefully received.

Thank you

JK

Chappaz

http://www.moneysavingexpert.com/loans/build-credit-history

http://www.moneysavingexpert.com/loans/credit-rating-credit-score

http://www.moneysavingexpert.com/credit-cards/bad-credit-credit-cards

I'd recommend getting a card from Aqua. It's designed for people with poor credit to help them improve their credit history.

Just avoid having a balance of more than 30%-40% of your limit on the card at any time, and pay it off in FULL every month. Set up a Direct Debit to do this and set it to pay off your full balance, and also ensure that you pay the first two monthly payments off manually as it can take time for the DD to be established.

After 5 months or so, contact Aqua and request a credit limit increase. If you've used your card every month and paid it on time, you should get one.

However, only use the credit card to build your history. Don't use it as a proper form of debt (i.e. holding debt on it for more than a month) because credit cards for people with low scores tend to have astronomical interest rates. If you build your history up enough, you should eventually be able to get better cards with much lower APRs which you don't necessarily have to pay off in full every month.

And with such a low score, your first credit limit is likely to be very low. Perhaps a few hundred pounds, so it's not going to be a great deal of use anyway in the short-term.

sourcrates

Credit score means absolutely nothing.

If you must have a credit card, apply for a standard one from a mainstream lender.
Your credit score has no bearing whatsoever on wether you will be accepted or not, it's credit history lenders look at, and whatever there own lending criteria may be, no one ever sees your made up score but you !!

Rothstein

Your score is based upon your credit history, and the higher your score, the more likely you are to meet the lending criteria of more lenders.....is what the above poster is struggling to get across to you, or understand himself......

Rothstein

"Just avoid having a balance of more than 30%-40% of your limit on the card at any time, and pay it off in FULL every month. Set up a Direct Debit to do this and set it to pay off your full balance, and also ensure that you pay the first two monthly payments off manually "

Follow this advice and you will go from a £400 limit to the dizzy heights of perhaps £750, and it may take a year !

Spend £350 on the card, clear it , spend £350 on the card and pay off £300, repeat repeat repeat , even doing it twice a month.....and you won't need to ring for an increase, it will go up to £1500 in 6 to 9 months

After 4 months of the first account being opened, get a second card.....

Repeat the process

Easy to get from £400 limit due to no credit history to £30k within 18 months

Sncjw

Rothstien wy are you advising people to not pay in full. Your advising people to actually pay interest which is bonkers.

Credit score does mean diddly squat even advises by martin Lewis. Also paying off in full is advised by martin Lewis.

Op if you have a card pay it off in full each month. You will develop a good credit history.

Sncjw

You say easy to get from 400 limit to 30k. You can't say that will be for everyone as your limits are based on your history it won't be the same for everyone else.

Also based on income as well.

Ben8282

In your situation I would first try the bank that I have the current account with to see if they would give me a card.
If not, you will have to try one of the credit builder cards.
Try to fill out your credit files a bit. Get a SIM only contract. Change your utility providers to providers who report. Get a landline.

Dobbibill

Make sure you check all 3 CRAs- they will all score you differently but that's not shared with lenders so don't be too concerned with it but check all reported data.

Make sure you cancel the Equifax subscription before you get charged......you can still check the details on Clearscore which is free.

Rothstein

If you want to raise your profile faster, my way works, this isn't about saving money, it's about raising money.....once you get there, then you can follow the normal path if you wish, but there is always more than one way to skin a cat !

Rothstein

It's an example, it's possible, all things being equal......