Store card debt and credit score

Joanniani

Hi, I have 2 store accounts at around £1500 each; which a couple of years ago would have been fine when I was married and there was 2 salaries in the household. However now we’re separated therefore only one income.  

Fast forward to now and looking to move to a new flat. I’m aware my credit score is not the best, I missed 7 payments on the store accounts in 2016 but since then I haven’t missed one.

my question is: would it be sensible to get a loan (if I can) to pay off the store accounts and just have one payment? Would it affect my score for the better?

Thanks in advance!

PaulW922

Your landlord (assuming you are renting) will want to know that you are going to pay the rent. Having a number of missed payments on your file will not help your overall credit rating, but as every user of that data makes their own assessment (you do not have a single 'credit score') seeing that you are now up-to-date may be sufficient. Taking out a loan will also require a credit check and an assessment of your circumstances so it may not be the answer for you, especially as it will not expunge the late payment history of the store cards. I would suggest that you keep up-to-date with your payments now, and at the same time, check your credit data at Experian and Equifax for any surprises. 

SpreadableToast

PaulW922 said:

Your landlord (assuming you are renting) will want to know that you are going to pay the rent. Having a number of missed payments on your file will not help your overall credit rating, but as every user of that data makes their own assessment (you do not have a single 'credit score') seeing that you are now up-to-date may be sufficient. Taking out a loan will also require a credit check and an assessment of your circumstances so it may not be the answer for you, especially as it will not expunge the late payment history of the store cards. I would suggest that you keep up-to-date with your payments now, and at the same time, check your credit data at Experian and Equifax for any surprises. 

Tenancy credit checks don't show missed payments.

D3xt3r5L4b

Joanniani said:

Hi, I have 2 store accounts at around £1500 each; which a couple of years ago would have been fine when I was married and there was 2 salaries in the household. However now we’re separated therefore only one income.  

Fast forward to now and looking to move to a new flat. I’m aware my credit score is not the best, I missed 7 payments on the store accounts in 2016 but since then I haven’t missed one.

my question is: would it be sensible to get a loan (if I can) to pay off the store accounts and just have one payment? Would it affect my score for the better?

Thanks in advance!

Getting the loan is not fixing the problem just moving it

cymruchris

I'm guessing you're going to rent rather than buy?

Joanniani

Yes. I do currently rent but wanting to move. I’m happy to continue paying both payments - I just thought it would be better 🤔 I am not fantastic at financial things hence the reason I have two store accounts 😬

bazzyb

You can do an eligibility checker online to see your chances of getting a loan, it would be guesswork for us not knowing your circumstances. 

Given your credit history it is entirely possible that the interest rate on a loan would be higher than the rate on the cards so it may well not be the best solution and it would be better just paying as much as you can to clear the cards as quickly as possible.