Rebuild Credit Time Estimate

tightasagnats

Hello folks.



I had excellent credit file for years, then moved house and took out loans for refurb and maxed out on cards. No missed payments or late ones, but no one will offer me anything and credit cards have started charging interest. Luckily I now have enough to pay off almost all of the card debt, which is £9000 - so I shall have about £3k left to clear which I hope to do within 12 months.


Any idea how long it takes to get your score back up? Mine is half what it was, used to be 999 or whatever the top ranking was. I don't need any credit now (other than a 0% Bal Transf card but can't get one) but I may do in about 3.5 years time, when the bank loans will be repaid (and the credit card debts will be long gone) and I shall want to remortgage.



The issue with lenders is that I am over committed. Which I am, but I can make the payments as I am careful and have a lodger and stable job. Anything can happen, of course, but so you have the context.



So will it take for all debt to be cleared to restore my credit rating? Or would clearing cards make a good impact? Loans were £40K over 5 years - 3.5 to go all payments up to date.



I guess I can wait and see, but it'd be nice for any info people may have as I have never been in this position! Often had about £2-4K on cards @ 0% but not such large debts overall.



Thank you.

[Deleted User]

Don't worry about the score. It's a made up number that had nothing to do with your credit worthiness.

Work on clearing the debt, highest interest first and make all payments on time.

The less reliant on debt you appear, the better lenderd will view you.

DCFC79

Don't focus on the score, lenders don't see it.

As for the declines well it's likely the debt is the issue in relation to your salary.
Just chip away at the debt.

tightasagnats

Thanks folks. I shall.

jonnygee2

I had excellent credit file for years, then moved house and took out loans for refurb and maxed out on cards. No missed payments or late ones, but no one will offer me anything and credit cards have started charging interest. Luckily I now have enough to pay off almost all of the card debt, which is £9000 - so I shall have about £3k left to clear which I hope to do within 12 months.


Any idea how long it takes to get your score back up?

In many ways you are already a lenders dream. You have a history of taking out large sums of money and paying them all back along with a heap load of interest to line their pockets. The perfect customer!

Still, if your debt to salary ratio is too high, it would be irresponsible for lenders to lend more to you.

So basically as soon as your debt to income ratio falls you'll most likely find lenders queuing up to try and get you to borrow again. Obviously, though, it's a really bad idea to be in this much debt.

tightasagnats

Yes, it is of course a bad idea.

You're right. I do have a high debt to salary ratio, but I have a lodger and live in London so lodgers are always available and I hope I'm a decent landlady If the worst happened, I could rent out the whole house. So I took the risks with backup plans.

Always unforseen elements, I didn't think I'd struggle to get balance transfer deals, so that's a lesson.

Thank you for the information and advice. Makes sense. I can't wait for the debts to be cleared and I won't do it again! It was a once in a lifetime chance for moving house and increasing it's value for my old age.

Have a nice weekend everyone :beer: