Will clearing all my short term debt increase my credit score?

ikc83

Hi all,
I have recently cleared all my short term debt as i plan to apply for a mortgage mid next year, although ive never paid late or had any form of CCJ or anything like that my credit score came up poor, I was told its due to the amount of short term debt I had. Now that has all been cleared will it increase my credit score back to its previous higher levels or is there more work to be done?

Any info would be greatly appreciated.

[Deleted User]

It's more likely to drop it, at least on Experian, as it's a significant change to your files.

But lenders will view you much more positively, which is the only thing that matters.

Caz3121

Score does not matter to lenders, they will look at history. The longer ago the loans the less effect they have.

ikc83

so if I continue to use my credit card for fuel in the meantime and pay it off in full each month I take it that should bring my score up slightly over the 18 months also?

[Deleted User]

It might or might not. Again, it doesn't matter.

But what it will do is demonstrate solid credit management.

jimbo26

ikc83 wrote: »

so if I continue to use my credit card for fuel in the meantime and pay it off in full each month I take it that should bring my score up slightly over the 18 months also?

YOUR SCORE DOES NOT MATTER.

What lenders are interested in is how you manage credit, they don't give a flying fig about the made-up score from Experian, Trans Union or Equifax, because they can't see the made-up score that these companies have allocated you.

DCFC79

ikc83 wrote: »

so if I continue to use my credit card for fuel in the meantime and pay it off in full each month I take it that should bring my score up slightly over the 18 months also?

It may do yes, if you fancy a higher number then why not but only you will see the higher number.

coachman12

Yes ikc83

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I believe that your proposal will benefit you after about 6 months. And , as all other posters say, forget your score and concentrate on your financial trends which over 6-12 months will make a big difference to how you are viewed by those who check your credit worthiness.