Advice Needed on Improving Credit Score

AGNES33

I hope this is the right place to ask.

Basically, Vodafone has now given me a low credit score, due to it being the last account I have closed in the past six months.

Is there any point in settling it? I don't think so. I was advised by Experian to leave it be since it will appear for 6 years regardless.

I should have not cancelled the DD, it does seem silly after being in the contract for 2 years, then refusing to pay the notice period. However I was understandly upset because they had charged me for my minutes and texts, which were free as stated in the contract. I did follow it up, albeit not so rigorously as I should have.

I have contacted Vodafone, who have told me my account is closed. Any correspondence or calls between us have been closed since June 2018, so follow up is out of the question.

Looking for advice, what is your experience with accounts affecting your credit score? The problem being for me here is I can't switch energy providers, or from PAYG on energy, due to a low credit rating. I'm finding PAYG extortionate. I have tried USwitch but seems like my energy provider, British Gas, is already providing me with the cheapest tariff available to me. Currently, I put £40 in the electricity meter and £40 in the gas meter every week. I do have a smart meter.

The only option I feel available to me at this time is to open up a credit card account which I have done. Any other suggestions?

[Deleted User]

No one has given you a low credit score apart from a CRA. And they don't count. Your credit files simply show the history of your account management and that's what lenders judge you on.

Settling the Vodafone account will look a lot better than leaving it unpaid, especially as it is so fresh.

Its impact will diminish over time. Use the credit card and clear in full each month. Time will do the rest.

Check all three of your credit files to see if there are any other issues.

AGNES33

Thanks.

I did wonder if it would be better to settle it but Experian said a default is a default. Strange advice, but I'm new to this.

No other problems at all with my credit file.

Experian did say my poor credit score is subjectable to an energy provider so if I explained why I had a poor credit score before the credit check they might take it into consideration.

Barclaycard did accept me, so common sense is telling me one of the energy providers will too.

Many thanks.

[Deleted User]

Lenders and providers don’t care about your score so there’s no point informing anyone about it

If you owe Vodafone money and the account is in default then they could apply for a CCJ and then that will potentially be there for another 6 years and will look far worse then a defaulted but settled account.

AGNES33

Okay, so essentially just pay the £85. That's all it is, but this small figure has introduced me to the credit world!

Thank you for the advice. Consider it done.

[Deleted User]

If you owe it then yes pay it

Sahara_Swami

Important Things You Can Do Right Now

Setup payment reminders
Making your credit payments on time is one of the biggest contributing factors to your credit scores. Some banks offer payment reminders through their online banking portals that can send you an email or text message reminding you when a payment is due. You could also consider enrolling in automatic payments through your credit card and loan providers to have payments automatically debited from your bank account, but this only makes the minimum payment on your credit cards and does not help instil a sense of money management.

Reduce the amount of debt you owe
This is easier said than done, but reducing the amount that you owe is going to be a far more satisfying achievement than improving your credit score. The first thing you need to do is stop using your credit cards. Use your credit report to make a list of all of your accounts and then go online or check recent statements to determine how much you owe on each account and what interest rate they are charging you. Come up with a payment plan that puts most of your available budget for debt payments towards the highest interest cards first, while maintaining minimum payments on your other accounts.

[Deleted User]

Sahara_Swami wrote: »

Important Things You Can Do Right Now

Setup payment reminders
Making your credit payments on time is one of the biggest contributing factors to your credit scores. Some banks offer payment reminders through their online banking portals that can send you an email or text message reminding you when a payment is due. You could also consider enrolling in automatic payments through your credit card and loan providers to have payments automatically debited from your bank account, but this only makes the minimum payment on your credit cards and does not help instil a sense of money management.

Reduce the amount of debt you owe
This is easier said than done, but reducing the amount that you owe is going to be a far more satisfying achievement than improving your credit score. The first thing you need to do is stop using your credit cards. Use your credit report to make a list of all of your accounts and then go online or check recent statements to determine how much you owe on each account and what interest rate they are charging you. Come up with a payment plan that puts most of your available budget for debt payments towards the highest interest cards first, while maintaining minimum payments on your other accounts.

Thanks for the spam :beer: