Best way farward with increasing my credit worthiness?

nicetomeetyou

Last year was pretty good for me with my finances. At the beginning of the year my ClearScore score was very low. This has improved quite a lot. I payed all the money I owed on closed accounts. All my old accounts have balances of zero.

I got accepted for a small overdraft with Nationwide, this has increased to £650. (balance zero)
I got a Vanquis credit card, currently at £500 (balance £200)
My jacamo catalogue amount is £350 (increasing to £550 end of Jan) (balance (£10.55)
I have a contract mobile phone with Virgin (loan for £1300)

I have kept on top of all payments. I am very sensible with my money. I would like to get rid off the Vanquis credit card and get a nationwide members card. I don't be the eligibility yet.. What things do I need to so to build better credit worthiness? Am I doing things right?

Willing2Learn

Hi :hello:

Firstly, please ignore your ClearScore credit score as typical lenders don't see it and don't use it either.

Secondly, try not to dip into your overdraft, as it can indicate to lenders that you are living beyond your means.

Thirdly, keep your Vanquis card and keep paying the full statemented balance by DD. Why keep the Vanquis card? Because it always good to have multiple cards in case there is a problem. Multiple lines of credit also indicates that you are becoming trusted by your creditors.

yksi

Throw every spare penny at the Vanquis balance, that will be a high interest rate. Even Jacamo is 25%, so try not to use it - that increased limit is for making you look good to lenders, not for looking good in more clothes!

Side note, big ouch on that phone contract cost! I hope it's gold-plated!

nicetomeetyou

yksi wrote: »

Side note, big ouch on that phone contract cost! I hope it's gold-plated!

Iphone 11 pro. Buy outright £1050
9 gig date, 2500 mins, unlimited texts
apple earphones £160