Need help

Kealanc

Hi just looking a bit of advice.About 4 years ago I did work I never got paid for (£20 grand). By rights I was technically now bankrupt but morally I didn't want to let suppliers take a loss. So after many sleepless nights and panic attacks, I got everyone paid off. But i was left with a couple of defaults on credit cards. 2 have been repaid in full the last one has 1000 left on which I pay off every month without fail. Now 4 years later my credit score is terrible so 2 months ago I decided to get a credit building card. Which I got on 1st application for 300 pound limit. Now I've used this card and paid back full amount each month. And for each month I've had it my credit score has gotten worse and worse now hitting rock bottom. This has really left me discouraged that 4 nearly 5 years later after paying everybody off and never missing a payment for years I'm in a worse place than ever. What can I do :(

[Deleted User]

The scores are made up, so you can ignore them.

Keep doing what you're doing. Check that all the information on your three files are correct.

StopIt

You're not in a worse place than ever.


The defaults will still be a negative mark on your file until they drop off 6 years post default but your credit history is what needs improving, not your score.


Showing a credit relationship like a credit card being paid off every month is a positive. Make sure you're on the electoral roll also and make sure you don't have any recent issues like CCJs for any debts you may have missed.

Candyapple

As has been said above, scores are just a marketing tool so at best use them as pointers in areas you can improve on e.g. if you aren't on the electoral roll - make sure you are.

Part of the reason your 'score' will be low will be due to any defaults you have. Secondly whenever you apply for credit, searches will usually mean your score lowers. Also any new accounts will generally mean for the next 6 months or so your score will temporarily lower too.

Your credit history is what actually matters so as long as you keep getting those green zeroes every month, all you need to do is make sure you keep that up, you are on the ER and this info shows across all 3 agencies files, that there are no mistakes with regards to any other records on your files that shouldn't be there e.g. financial associations.

Also, do you have a bank account / mobile phone contract? Do they also show up?

Another word of advice is don't fall into the trap of spending on your card and then paying off the balance the following day/a week later. You need to spend - and then wait for a statement to be generated before you pay. If you are paying the balance before a statement is generated, it is reported back to the credit reference agencies as if you are not using the card so you'll get a 'U' in your status update instead of a green zero.

Also, set up a direct debit as this is the easiest way to make sure you never miss a payment. You can either set one up to clear the entire balance - or just the minimum payment.

The free versions to check your credit files are below:
Experian: https://www.moneysavingexpert.com/creditclub
Equifax: https://www.clearscore.com
Call Credit: https://www.noddle.co.uk

Kealanc

Hi guys thanks for replies some great advice and really lifted the mood. Because I've tried to do the right thing in paying every penny back for something that was no fault of my own and just felt like it was a never ending circle. Thanks again

Thrugelmir

Worse things in life than having a poor credit record (temporarily).

Rah25

"2 months ago I decided to get a credit building card. Which I got on 1st application for 300 pound limit. Now I've used this card and paid back full amount each month. And for each month I've had it my credit score has gotten worse and worse now hitting rock bottom. "

Is getting a credit building card not a good option then? I was thinking of getting one but is this actually affecting your credit profile negatively or is it just that it hasn't really been long enough to make a positive impact?

System

Rah25 wrote: »

Is getting a credit building card not a good option then? I was thinking of getting one but is this actually affecting your credit profile negatively or is it just that it hasn't really been long enough to make a positive impact?

No because credit scores are meaningless. What such a card does do is show that you have the ability to stay within your credit limit and to make regular repayments on debt.