How do I restore my credit rating in this situation...

CreditSOS

Hey MSEer's

I'd be really grateful for some advise on how I can rebuild my credit rating (which is surely mud now).

Here's my situation:

1. Been out of the UK for 2 years
2. Will still be away until the end of this year
3. Vodafone UK closed/cancelled my mobile account due to non-payment (£15/mo)
4. Bank closed my personal bank account (it was just over the authorised £500 overdraft limit) in Nov 2017 and was passed on to Cabbot Financial who see to be a debt collector.
5. My company bank account is now in credit after being in debit for 18 months (I have an existing £3000 overdraft facility on it).

I'm circumstances have now changed and I'll now be again with a good regular income (£80,000 pa) which will paid to my company.

What tips could I do to get back in the 'good books' again after some financial hardship over the last couple of years due to circumstance beyond my control (and while still out of the country).

Thanks for any tips and advice!

[Deleted User]

• When you return, get a bank account.
• Get on the ER.
• Get a credit card or two - use it and clear in full each month.
• Don't miss payments and stay under your credit limits.
• A phone contract can also help.
• Check your three credit files (ignoring the scores and ratings) to make sure everything looks as it should.

CreditSOS

Thanks ZX81... what is ER?

Do you think anyone will give me a phone contract / credit card under these circumstances?

Admittedly debt is low and income is comparatively high.

How long is it in general before credit health is restored?

Thanks!

[Deleted User]

ER = Electoral Roll.

The sub prime cards will offer cards to those with thin/poor credit histories.

There's no objective measure of credit health. The more good history you have, the better. You just need to meet the criteria of the lender you're applying to.

CreditSOS

Arrr, ER = Electoral Roll. Makes sense.

How does the company revenue / personal income play out? If I am the sole director I guess they don't reconcile that when looking at personal credit history?

( I am wondering if I should drawn down more in salary or dividends from my company to help bring my credit rating back to life ).

Thanks for the great tips!

System

I assume your "company" is a LTD company? (as otherwise it would be a "business").
As such it won't have any relation to you or your credit file.
Sole trader would be different. If you create debts as a sole trader they belond to you.

As for Salary/Dividends it makes no difference what so ever to your credit file (for tax it does). Alas if you pay dividends you need to pay them to all shareholders.

macman

You don't have a credit rating. You have a credit history, which is what lenders will examine.
Are the two accounts you mention shown on your credit report as defaulted? Are there any CCJ's?
Don't assume anything about your report. Check all 3 CRA's and be sure about what it shows.