Improving my credit score?

LibbyL92

Hiya,

My first time posting here, looking for some advice.

I’ve just taken a look at my credit score on noodle and it’s 1/5 a score of 547.
Which of course isn’t great.

Everything is fine on the report, never missed any payments ect. The only issue is I have two cards maxed out. I’ve been doing some googling on how to improve and I believe the issue is the balance on my cards. I’ll admit I’ve only ever paid the minimum on them sometimes a couple of hundred and then I spend again.

Anyway, I’ve read that I should keep my cards at 30% or lower of the balance of the cards (Utilization??)
I can have one card down to 30% by May and the other would be December.

This is the only thing I can think of that’s taking a knock on the credit rating.


Any advice or information would be greatly appreciated!

[Deleted User]

LibbyL92 wrote: »

I’ve just taken a look at my credit score on noodle and it’s 1/5 a score of 547.
Which of course isn’t great.

It's fine. The score isn't important.

Lenders will look at how you manage your account, rather than any score.

Are your balances incurring interest? If so, that, coupled with minimum payments, suggests you're living way beyond your means.

If they're at 0% , then it's not so much of an issue.

Avoid maxing out your cards. It suggests you're desperate for credit.

If you're incurring interest, get it paid off and/or shift to a 0% card if you can.

If neither of these are options for you, visit the DFW boards for advice on cutting cost and paying back faster.

LibbyL92

Thanks for you reply!

And yes both cards have interest. I got knock back over a year ago for a 0% interest card. So I believe my only option is to get them paid off as quick as I can.

[Deleted User]

Make sure you throw as much as you can at the highest rate card, while paying minimum plus £1 on the other.

Do your daily spend either on a third card and clear in full each month, or with your debit card. At the moment, you're incurring interest on all your spend, which isn't necessary.

LibbyL92

Great, I can afford to put £400 a month on one card and then the minimum payment on the other is £45 so if I round that up to £50

I’ve put the cards at my parents so I won’t be able to use them now. Just really want to get these down as my car is up next year and I’m looking at getting a new one out but really worried I’ll be knocked back the finance (despite never missing a payment with them)

[Deleted User]

Consider saving up and getting a cheaper runaround.

If you can get your head above water you can reduce your reliance on credit.

LibbyL92

Thank you, really appreciate your advice

DCFC79

LibbyL92 wrote: »

Great, I can afford to put £400 a month on one card and then the minimum payment on the other is £45 so if I round that up to £50

I’ve put the cards at my parents so I won’t be able to use them now. Just really want to get these down as my car is up next year and I’m looking at getting a new one out but really worried I’ll be knocked back the finance (despite never missing a payment with them)

Really consider buying 1 with cash, there alot of secknd hand cars out there, yes theres some dodgy cars/sellers but buy wisely, do you know a friend who is a mechanic, ask them to go with you when you look at a car sold privately.

If you can buy 1 on credit car.

Ben8282

LibbyL92 wrote: »

Thanks for you reply!

And yes both cards have interest. I got knock back over a year ago for a 0% interest card. So I believe my only option is to get them paid off as quick as I can.

I would suggest that you reduce the balances on these cards by making the largest payments that you can. Definitely pay more than the minimum. Then, at some point when the balances are lower, try to apply for a 0% balance transfer card to shift the balances to 0%. Don't go for the longest possible 0% period, go for something mid-range that may be easier to get.
I would agree that the existence of these balances is the thing that is making you unattractive to lenders.

LibbyL92

Great! I will definitely try and get a 0% in the next couple of months, hopefully by then credit will have improve.

Ben8282

Believing in credit scores is a bit like believing in Father Christmas. Concentrate on the information on the credit files and ignore the score.
Why not try an eligibility checker now and see what you may be offered. It can do no harm.