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I'm 22, how do I sort out my credit score? Please Help!!

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I'm 22, how do I sort out my credit score? Please Help!!

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marshall5634marshall5634 Forumite
1 posts
MoneySaving Newbie
Hello, 

I'm new to the forum and am looking for some advice on how to improve my credit score in order to get a new car on finance as my current car is getting quite old now. 

So, a bit of background. I'm 22 and employed by the NHS with an average salary of about 20k. My current credit score is showing as 255 on clearscore and 646 on experian. In terms of credit available to me. I have a credit card with a limit of £900 and my balance usually sits around £100-200 on that which I pay off each month. I have an overdraft on my current account of £2000 which I must admit I usually utilise about half of each month but I am working to pay this off. I also have my current car on finance with Blackhorse of which my remaining balance is £2900. I have a phone bill with sky and other monthly payments such as netflix, spotify etc. I always pay my accounts on time and regularly pay more than I have to. 

I have been trying to improve my score but hardly seeing it improve at all. I do have a default on my account from when I was 18 and took out a payday loan with QuickQuid (which I'm also trying to dispute with an affordability complaint as on my application my income was equal to my expenditure and so I would have had no spare funds to repay the loan amount). I struggled to make repayments and I was a bit irresponsible and silly but I have since repaid it in full (yet this had not been updated on my record). On top of this my credit file was showing a missed payment from a company called grattan which I was unsure about and so discussed with my mum and long story short she took credit out in my name and didn't tell me and missed one of the payments. 

Is there anyway I can improve my score enough to get a score good enough for car finance this year? Or is it possible to have this default or missed payment removed from my file?

Thank you for taking the time to read my post and any help would be greatly appreciated!
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Replies

  • zx81zx81 Forumite
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    Don't worry about the score. It's not a real thing, any more than you should worry about your horoscope.

    Stop missing payments, clear your debts and manage your credit responsibly going forward.
  • edited 3 July at 9:00PM
    DCFC79DCFC79 Forumite
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    edited 3 July at 9:00PM
    How long have you been in the job ?
    How much do you have left in the bank once all bills are paid ?

    Your history is what lenders can see, theres 3 credit ref agencies so check how the other one looks.

    Grattan is a catalogue firm, like Very, a google search would uncover that.
  • Adamr8965Adamr8965 Forumite
    6 posts
    First Post
    I would maybe look at a credit builder called "bits" you pay a monthly fee and they report to experian monthly, the higher the monthly payment the larger the credit limit reported.

    Secondly on the quickquid loan i would raise a dispute with the cra's.

    3rd Your mum taking out credit in your name is fraud, even worse when she's misses payments on the account.

    I would close the gratton account down, and keep paying on time each month this will help.
  • D3xt3r5L4bD3xt3r5L4b Forumite
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    Adamr8965 said:
    I would maybe look at a credit builder called "bits" you pay a monthly fee and they report to experian monthly, the higher the monthly payment the larger the credit limit reported.
    That’s probably worse than doing nothing at all...
  • IrishSeanIrishSean Forumite
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    My advice;
    Score is only an indicator; like a book it's what's inside not the cover that counts
    Set up dds if you haven't already to make sure you never miss a payment
    Have a frank conversation with your mum or anyone else planning to take credit in your name; they can't end of: check your file monthly to make sure it's not happening.
    Put a note on file that a 3rd party took credit in your name.
    Correct all mistakes with each credit ref agency.
    Start posting on debt free wannabe: get your debt cleared and an emergency fund built up of £1000: ask yourself "why am I even in debt?". It's not a compulsory thing - mortgage is different but short term unsecured is something you can and should be leaving behind.
  • MinuteNoodlesMinuteNoodles Forumite
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    Hello, 

    I'm new to the forum and am looking for some advice on how to improve my credit score in order to get a new car on finance as my current car is getting quite old now. 
    I also have my current car on finance with Blackhorse of which my remaining balance is £2900. 
    How old is the car? 10 years is starting to get old, I doubt you've got a car 10 years old on finance.
    At the moment you can't afford a new car. You need to address the overdraft and the car finance first before taking on more debt. The fact you're not reducing your overdraft usage by £100s every month suggests you've little spare money.
  • yksiyksi Forumite
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    How old is the car? 10 years is starting to get old, I doubt you've got a car 10 years old on finance.
    At the moment you can't afford a new car. You need to address the overdraft and the car finance first before taking on more debt. The fact you're not reducing your overdraft usage by £100s every month suggests you've little spare money.

    THIS.

    I know you don't want to hear it, but your focus is all wrong here. You're trying to improve your credit score for what - so that you can borrow more while you've already got problems with debt? That's now how you should live (on borrowed money). It's why so many people in the UK can't manage their finances, they think that it's normal and acceptable to live in debt and to just juggle borrowing their whole lives. You cannot afford to borrow anything. If your debts aren't going down by three figures per month, you have no spare cash so you certainly can't borrow more. I know you're trying to pay it off, but you must surely have noticed that your financial situation is precarious. It isn't fun to live that close to defaulting.

    Here's what you do: you look at how much money you have and you look at where it's going. You consider EVERY purchase and think about whether you need to buy that. You get into the habit of "not" buying things, from the clothes right down to the daily £3 meal deal.

    You make sure every single bill is paid on time, every time. You use your spare cash to pay off the overdraft as your #1 urgent priority. You get the car serviced, you take care of the oil and water, and you try to make it last until your debts are gone. Even better if you make it last while you save up £3,000 to get another car without needing to borrow.

    At that point your history will have improved all by itself.
  • adamp87adamp87 Forumite
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    Personally I wouldn't' take on any more credit until you've managed to get out of that overdraft without using it, 50% into it every month is the issue you have at the moment and also suggests to lenders you can't survive without it. 
  • edited 8 July at 2:57PM
    Fighter1986Fighter1986 Forumite
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    edited 8 July at 2:57PM
    You don't need any more credit. You need to maintain your existing accounts impeccably for a long time.

    Your creditworthiness now is low because you haven't had all of your accounts for a long time and because you regularly use your overdraft. 

    Get out of your overdraft, never go back in to it, and if you ever use your credit card, pay it in full each month.

    Carry on in that vein and as the months and years roll by you can be assured that your creditwirthiness will be good for you when you need it years down the line. 

    And make it damn clear to your mother that it is utterly outrageous for her to even consider taking our credit in your name. It is a criminal offence, it is fraud, and it is utterly despicable. Leave her in absolutely no uncertainty that if she is ever to even apply for a quote for anything in your name again she will be reported to action fraud. I'm very sorry you've had to suffer this. Your mother needs to understand how wrong what she has done is. 

    Please don't take after her. Focus on getting your finances in better shape, getting your approach to finance in better shape, and keep on aiming for those higher banded roles within the NHS. Maybe when you're near the top of Band 4 or are lucky enough to find yourself in a band 5 role can you consider buying a car. 

    I'm at the top end of Band 5 and am very happy in a £1,400 car. I now have a 14 year old Diesel Volvo S60. It's blooming marvellous. Full climate control, 13 speaker factory audio with dolby prologic surround, HID headlights, full leather interior, 2.4L Turbo Diesel engine which packs a reasonable punch on the highway yet delivers easily 50-60MPG on a run. Really nice drive, there's no justification for more IME. 

    May I ask what you do within the NHS? 


  • edited 8 July at 2:54PM
    foxy-stoatfoxy-stoat Forumite
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    edited 8 July at 2:54PM
    Hello, 

    I'm new to the forum and am looking for some advice on how to improve my credit score in order to get a new car on finance as my current car is getting quite old now. 

    So, a bit of background. I'm 22 and employed by the NHS with an average salary of about 20k. 
    I am 45 years old and drive 20,000 miles a year - employed full time - I drive a car that I bought for £1,500 - trust me, you probably don't NEED a new car that you cannot afford.

    Settle all defaults, never miss a payment, close old dormant accounts, don't use payday loans and get the electrol roll.  That would be the only things you need to do to get a good credit file.  As others have said, ignore the score they give you.


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