New credit file

prodigalson

Hi,
I have terrible credit right now, I have made this plan to improve my credit over the next few years. I wanted to know what the veterans on the forum think. I am not advertising for any of these services, just wanted to know your thoughts.

Obviously the assumption is that everything will be paid on time. () is the expected improvement of credit score.

Move to new address, open new bank account, with new updated ID (new driver’s license with updated address)

2019 - 2 loqbox (100) + electoral roll (50) + secured credit card (50) [200 point minimum score required] + Credit Improver + sim only contract (50) + credit ladder (50) = 300
2020 - 2 loqbox (100) + secured credit card (50) + sim only contract (50) + credit ladder (50) = 550
2021 - 2 loqbox (100) + credit card (50) + phone contract (50) + credit ladder (50) = 800
2022 - 2 loqbox (100) + credit card (50) + loan (50) = 999

My final goal is to have good enough credit to build a property portfolio in a few years time while I save for the minimum deposits.

prodigalson

The goal is to apply for a new credit card every year, thus reducing the credit utilization rate further and further over the years to less than 10% at any given time.

In the next 4 years I should have £80,000 in savings from the loqboxes, and other savings. Which should be enough to buy £400,000-800,000 of rental property which should cover its own mortgage.

How could I pad up my file further, I just want a large credit file showing good repayment history and a high score?

Willing2Learn

You have been looking at the wrong articles for advice. A CRA-derived credit score is not used by lenders and is not seen by lenders.


What you want to be doing is to make yourself look more attractive to lenders through building a solid history of credit account management. Loqbox is not an example of a real credit account and is therefore pointless.

Get yourself on the ER.
Get a SIM-only contract for your mobile.
Pay all your utilities by Direct Debit
Open a credit builder credit card account
Maybe also open a mail order account and pay for the goods before interest becomes payable (but after the statement is produced)

prodigalson

Willing2Learn wrote: »

You have been looking at the wrong articles for advice. A CRA-derived credit score is not used by lenders and is not seen by lenders.


What you want to be doing is to make yourself look more attractive to lenders through building a solid history of credit account management. Loqbox is not an example of a real credit account and is therefore pointless.

Get yourself on the ER.
Get a SIM-only contract for your mobile.
Pay all your utilities by Direct Debit
Open a credit builder credit card account

What would be the best credit builder card when you have little to no credit history? I want a more information of secured cards like capital one secured which requires a £200 deposit.

Sorry maybe I'm being dumb but what is a mail order account? I've never heard of it

Willing2Learn

I was offered a secured CapitalOne card when I made an unsuccessful application for a Classic card. You have to be invited. This was many years ago though, so things may be different now.

[Deleted User]

Your credit score plays not part in any of this.

The fact you've outlined a timeline with your score improving is pure madness, and probably a first for the forum.
Crazy....

Anyways, you'll need to apply for credit builder card - use an eligibility checker and see what you may qualify for and apply accordingly.

Just note that when you apply, your "score" will drop, and when the account is added to your files the "score" will again drop.
But fear not, just close your eyes and imagine what you want it to read.

Don't use services like Loqbox either - they are a waste of time and money.

Willing2Learn

prodigalson wrote: »

Sorry maybe I'm being dumb but what is a mail order account? I've never heard of it

For an account with a company like Very.co.uk.
You simply place an order for the goods on an account (with a credit limit). They send you the goods and as long as you pay the statemented amount during the 0% APR window then it will always be interest free.

prodigalson

!!! wrote: »

Your credit score plays not part in any of this.

The fact you've outlined a timeline with your score improving is pure madness, and probably a first for the forum.
Crazy....

Anyways, you'll need to apply for credit builder card - use an eligibility checker and see what you may qualify for and apply accordingly.

Just note that when you apply, your "score" will drop, and when the account is added to your files the "score" will again drop.
But fear not, just close your eyes and imagine what you want it to read.

Don't use services like Loqbox either - they are a waste of time and money.

The thing is how can I get a credit builder card when I have little to no credit. Initially I register on the electoral roll, get a sim only contract, and pay everything via direct debit. But will still need reasonable credit file to get a credit builder card.

Just read this article, Martin is a genius:
https://www.telegraph.co.uk/finance/personalfinance/11120400/Martin-Lewis-20-things-you must-know-to-boost-your-credit-score.html
https://www.moneysavingexpert.com/loans/credit-rating-credit-score/
:money:

[Deleted User]

Ignore the credit scores - THEY'RE NOT A REAL THING!!

Have you tried an eligibility checker for any cards?

Willing2Learn

If the standard sub-prime cards such as CapitalOne, Aqua or Vanquis reject you, then you may need to check eligibility with something like a thinkmoney card

prodigalson

!!! wrote: »

Ignore the credit scores - THEY'RE NOT A REAL THING!!

Have you tried an eligibility checker for any cards?

Yes tried it was not eligible for any cards, I don't know what to do?