Some advice on my credit history.

supernova480

I've been reading about how my credit score is only visible to me, but I was just wondering if anyone could offer some to help build my credit history.

I used to rent a place with my partner, but we unfortunately split back in 2016, the utilities if I remember correctly were either fully in my name, or under both of ours. I had to move back into my parents when we split and so cancelled the broadband etc.

As I'm looking to buy in the future, I thought it would be best to start checking to see if everything is in order. My scores across the 3 CRAs are Good/Stable. Looking at my actual report, I'm told it's all looking good with no CCJs, defaults and I pay everything on time with DD.
I do have a concern that back in 2013 I was sent a letter from T-Mobile that I owed around £300 for an unpaid phone bill that I took out for my sister when I was 16 in 2004. I had this paid instantly but I can't find anything on any of the CRAs mentioning such activities?

Fast forward to now, living with my parents and slugging away at saving a deposit, It's dawned on me that I have no utility bills in my name. Even my phone is still in my mums name (sad, I know) as it was taken out in her name when I originally lived at home, as it was an exclusive deal for broadband customers. - I'm going to open a new contract in my name this weekend and also change the rent I pay to a DD. Is this advisable?

I have a credit card which has a limit of £1600. When I originally took this out back in 2015, the limit was £800 - I originally took it out to help build credit as my girlfriend at the time and I were going to start saving for a house. Over those 3 years the limit has changed 4 times, Barclays increased it once and I increased it twice. The maximum it ever was was £2000 - I never exceeded or even reached that and I've now decreased it to £1600 as I thought it was affecting my decreasing credit score (wish I found this forum sooner). I understand this kind of behaviour doesn't look great, but I have it under control now and I do live well within my means. My credit card balance is currently stands at £740 and I pay a minimum of £150 a month on this - Would it be wise to just pay off the remaining £740 now? I just figured the direct debit is looks positive on my account.

I guess my question is how my history looks to potential mortgage lenders, and can anyone offer any advice on what I can do to look more desirable (if that's the correct term).

Oh and another note, I've always kept my electoral roll up to date - although they seem to differ from each CRA so I need to dispute this.

Thank you.

[Deleted User]

Clear the credit card - then use it regularly and clear it in full each month. Carrying interest bearing debt tells lenders you don't have enough disposable income.

Other than that, you have no obvious issues. The T-mobile account will have fallen off your files by now.

Having your own phone contract is no bad idea. But how you pay your rent to your mum is irrelevant She always won't be able to process a DD for you in any case. So a standing order or cash, whatever suits.

And really REALLY do ignore your scores. It's not just that they're only visible to you - they're generally very misleading. As you've seen, you took the randomly decreasing score as a cue to cut your credit limit - which can be a worrying sign to lenders.

supernova480

Okay, thank you zx81. I shall pay the remaining balance then. Should I just leave the card limit as it is? I was also thinking that in maybe a few months taking something out on finance, solely to help with credit. Something small, maybe a guitar of around £350, I think they offer them over a 10 month period so £35 a month. Or is this a silly idea?

[Deleted User]

supernova480 wrote: »

Or is this a silly idea?

Not so much silly as a bit pointless. Only do it if it's a significant financial saving - ie 0% interest. A budget guitar won't really fit into that category.

Let the credit card do the work. Put your shopping on it, clear it in full each month.

Hopefully the limit will increase over time, showing lenders that you can be trusted with credit.

Willing2Learn

You could do something like set up an account with Very or Littlewoods and buy something for £300 on 0%, if that was the sort of thing your looking for...

supernova480

Ah perfect, thanks again. I'll pay the balance and do as you suggested. I don't suppose you have an idea of how worrying lenders may find my activity..? baring in mind I'm not looking to apply for well over a year yet.

oh and I'll leave the guitar idea!

[Deleted User]

Once you've cleared the debt, a year of showing you're no longer reliant on credit will put you in a much better place.

Then it'll come down to deposit and affordability and so on...

supernova480

You could do something like set up an account with Very or Littlewoods and buy something for £300 on 0%, if that was the sort of thing your looking for...

I'll probably just leave it. If it isn't necessary, I just see the extra spending as money that could go towards the deposit.

macman

You can;t have taken out a mobile contract with T Mobile when you were 16. Unless you lied about your DOB?

supernova480

macman wrote: »

You can;t have taken out a mobile contract with T Mobile when you were 16. Unless you lied about your DOB?

I must have been 18 then. It was all perfectly legal, just too long ago for me to remember.

supernova480

I've been thinking more about setting up the phone contract in my name- The contract I'm looking to get is with EE, just a sim-only and £25 p/m. I understand that T-Mobile are now part of EE. Bearing in mind that the letter I received about an outstanding phone bill was from T-Mobile, is this potentially going to be a factor when applying for this contract? I can't find anything on my reports, but they may still do have it on record?

Back in 2013 I was declined a store card, I didn't really take much notice as it was my girlfriend who wanted it rather than me after she was declined for having little or no credit history after moving from abroad.

I earn more money now and I've had various utility bills in my name, with no problems and I have a credit card (which I've now paid off the latest statement in full, I have just over £15 left to pay which will be paid next statement) I've also had different car insurances in my name being paid monthly if any of that contributes?

I've always paid everything on time (I was unaware of the T-Mobile). Am I being over cautious, or should I be concerned about applying for such things? Perhaps maybe wait a few months so I have no debt showing on my credit report from the CC. And If I do apply for the 0% like you have suggested, should I wait a while after the phone? I understand that applying for too much in a short space can seem worrying?

Forgive me, I'm completely clueless with all this sort of thing, so your advice is greatly appreciated.