Improving Credit Score

ameyw

Hi!

Me and my partner are planning to buy our first home in the new year and I really want to start improving my credit score/history now. I'm 25 and a student in my final year of my nursing degree and I have a job lined up to start in September 19.

I've always had a poor credit score due to a defaulted account in Sept 2013 which was settled in November 2013. This should drop off my history this year right?

I'm on the electoral list for my home address with my parents and have lived there for 20yrs + and I've just applied to be on the electoral list for my uni house.
I've had my current account for 9 years now and had a store card until next year.
I've got several direct debits for Sky WiFi, phone bills, car insurance, car tax etc.

I've been declined for a credit card at HSBC last summer due to the defaulted account and I'm worried this won't change until it gets removed.

What else is there I can do to improve my credit score? I'm worried that because of my history it'll fail mine and my partners joint mortgage plan.

TIA!

[Deleted User]

Building credit history with a credit card is the easiest route to improving things.

But try someone lower down the food chain, such as aqua or Vanquis, or at least try an eligibliity checker first.

macman

Your credit score is irrelevant. It's a made up figure and no-one else can see it. It's your history that matters. By 'new year', do you mean 'next year'? If you do not start full time employment until September, then you are not going to get a joint mortgage before then, as you have no income.

ameyw

Yes by new year I mean next January at the earliest. We have a good deposit saved up so far (30k) and will be looking for a house around 200k in our area. So it's just the mortgage I'm worried about.

And thanks! I'll have a look at the eligibility checker on here today.

cymruchris

I would wait for the default to drop off before making the mortgage application. It usually drops off automatically - mine have done so far. Watch your credit reports on the mainstream data providers like equifax and experian - and once they've dropped off - then go for your application.

The_Analyst

My wife and I had 3 or 4 defaults on our credit files from DMP back in 2011
Getting credit was a no-no during that time. As of June 2018, all defaulted accounts disappeared from our credit files
We applied for a £250k mortgage in September 2018 and were accepted within 24 hours

As per the advice already given. do not apply until you can see your clean credit file (bare in mind that some credit reference agencies only update once a month so it may take up to 3 months from the date that you expect your file to be clear to actually be clear with all agencies)

OA234

Hi, I had 2 missed payments removed from my Thames Water credit account. The payments were already showing on my credit file, and, I was not aware.

I did not know that the account with TW was a credit account and was been reported to Equifax

I rang them up and told tell them that I had set up a Direct Debit and I spoke to an intermediary to the credit team. I explained to him why I missed the payment, and, requested that they remove the markers on my credit file.


They did.



So, if you have a good relationship with the lender, you may want to discuss removing the missed payment from the account.


Easiest way to improve your credit score as someone suggested is to get a credit card from Aqua and pay it off monthly.


As time goes by check if you are due for a credit limit increase.



If you are, I would suggest that you accept, use it and pay it off monthly.


The reason is that credit utilisation and credit limit make up about 50 % of your credit score. So, the lower your credit utilisation the higher your score and the higher your credit card limit, the higher your score too. This I believe is true for Experian. I am not 100% sure about Noddle and Equifax.


Also, check your credit file on ALL 3 Credit Reference agencies regularly; especially 3 months before you apply for the mortgage. You don't want any surprises.


Lastly, I suggest considering taking out a small loan from your local credit union. They rarely say no & the repayment will do your credit profile some good.


All the best with Uni & your new job!!

DCFC79

OA234 wrote: »

Easiest way to improve your credit [STRIKE]score[/STRIKE] history as someone suggested is to get a credit card from Aqua and pay it off monthly.

The reason is that credit utilisation and credit limit make up about 50 % of your credit [STRIKE]score[/STRIKE] history. So, the lower your credit utilisation the higher your score and the higher your credit card limit, the higher your score too. This I believe is true for Experian. I am not 100% sure about Noddle and Equifax.

Lastly, I suggest considering taking out a small loan from your local credit union. They rarely say no & the repayment will do your credit profile some good.

Credit score is only seen by you, lenders see the history.


Credit unions may want you to be saving with them first before you take out a loan.