Early repayment help or hinder

sp89

Hi there, Asked a lot of people and nobody seems to know. My credit rating is very poor even though i havent missed any payments in 3 years. im in a position to pay off all debts completely and try for a mortgage. Last year i closed 1 card with a large limit and long service and it knocked alot of points off and it still hasnt fully recovered. What would be the best option solely for improving credit score.
Car - 14k
Card1 - 1k
Card2 - 1k
Loan - 3k
Unsure if the different types of credit affect my score in different ways if they were to be settled and/or closed
Many thanks for any help

[Deleted User]

Don't focus on the score, as it's not a real measurement of anything.

Clear your highest rate debt, while maintaining contractual payments on all others.

Keep your credit cards open and use sensibly, clearing in full each month.

Don't be concerned when you lose more points for clearing your debts. Lenders will view you more positively even though Experian won't.

[Deleted User]

Ignore your score/rating.

It's "poor" because, despite not missing payments, you're carrying debt.

Clear the balances on those ASAP, post on the DFW board if needs be, but don't close any of the cards or decrease the limits

Willing2Learn

Hi sp89 and welcome to the forum

Your score is unimportant as lenders neither see no use it. You credit score is for your eyes only. Lenders score you independently against their own criteria and policies, using the data held in your credit files, added to the data you submit in a credit application, added to any data they may already hold on you as an existing or returning customer.

As suggested by Gary, what you really need to do is to take a good look at your finances so that you can work out how to reduce your level of debt. Please post on the Debt-Free Wannabe board for advice, guidance and support.

sp89

So in terms of getting a mortgage in a few months, if my score goes to 1 they will see ive cleared everything and all should be good? or is there certain criteria that must be met even if completely out of debt from a mortgage lender prospective? Cheers!

[Deleted User]

sp89 wrote: »

So in terms of getting a mortgage in a few months, if my score goes to 1 they will see ive cleared everything and all should be good?

No. They simply won't see the score at all.

They will look at your debt and credit history.

sp89

You have all been a great help and extremely fast. Thank you all very much :)