Moving forward default free

Fred1987

I'm hoping to be default free in the next 12 months, my question is without any outstanding debts how quick can I build a credit score of 525 to a low risk mortgage applicant.

And what steps can I take. Thanks

cjmillsnun

First off, ignore the score. Lenders don't see it. They use their own algorithms to create their own and the information in your credit report is one factor alone.

Do you have a credit card? If not, apply for one with your bank. Put a necessity on it (I use fuel) every month. Pay it off in full once you receive the statement every month. By doing this, you're not spending extravagantly (you were going to spend this money anyway), and by paying in full, you are not paying any interest. The easiest way is to use a direct debit set to pay the full balance.

Do you go overdrawn? If so, DON'T. The above may help with this by deferring payment until after you have been paid. If you do that make sure that you don't pay the card late.

Do you have a mobile phone contract? If not, get one. A mobile phone contract is a credit account and as such is recorded on your file. You don't have to get an expensive one. A SIM only contract is cheaper than PAYG.

What's your deposit like? 15% or more will be better as you will have some equity.

Sncjw

Can I ask why do you need a score of 525 and which of the three of the credit reference agency!!!8217;s are you getting that made up score from.

You do realise it!!!8217;s made up given that each agency has a different top score and also that they use to try and sell products to you

Fred1987

Thanks for the replies

I used Noodle which is Callcredit, i have a 1 out of 5 or a 525 score.

I have recently got 1 capital 1 credit card which i intend to use for fuel, i will look to get a mobile contract and i dont ever go over drawn.

Thanks

[Deleted User]

Does "Debt Free" mean hoping for defaults to drop off next year?

https://forums.moneysavingexpert.com/discussion/5828930

That's not being debt free.....