Credit score improvement

icheckmate

Hello,
I have a very poor credit score and I am working on improving it. I havent had a missed payment in around a year and a half which is a step in the right direction.

I have 3 credit cards.
Vanquis, Aqua and Capital One.

All are close to the credit limit which I understand is a negative in 'credit utilization'. 
I have noticed in the past I get email notifications from Experian, Credit Karma that my credit utilization is less than it was 3 months ago, so my credit score has gone up. Which would benefit my credit score more?

a) pay all balances down to 0 straight away
b) pay my balances down to only 10% used, then next month down to 5% used, then next month clear it off. This way my credit utilization significantly improves every month for 3 months. Would this give me a net larger increase on my credit score?

Kind regards
Steven

bradders1983

Stop looking at the 3 digit score, it is meaningless. You clearly need to get the cards paid off ASAP, if anything it will cost you less in interest.

D3xt3r5L4b

You should be clearing your balances in full each month regardless. 

icheckmate

I understand why this is the case, but if the overall goal was to increase the number - even if the number alone is meaningless which way would provide the biggest net benefit?

bradders1983

icheckmate said:

I understand why this is the case, but if the overall goal was to increase the number - even if the number alone is meaningless which way would provide the biggest net benefit?

Clearing the balance ASAP, to reduce the amount of interest YOU pay and to reduce YOUR overall credit utilisation. That is your only concern. 

Not entertaining a discussion on how to improve a three digit number a) lenders dont see ,b) isnt used in lending decisions, and c) is made up by the credit reference agencies in order to cross sell loans and credit cards.

D3xt3r5L4b

icheckmate said:

I understand why this is the case, but if the overall goal was to increase the number - even if the number alone is meaningless which way would provide the biggest net benefit?

If your overall goal is to improve a meaningless number, then I suggest you find a new hobby

Ptchanda

Hello...My credit score at the moment is in the red and I cant apply to anything. I came across GETBITS and apparently they help you build up your credit score. As anyone came across this app/company? Is there anything I should know in order to either stay away or sin up?
THanks

[Deleted User]

You just need to know that your score is meaningless and no company can help you change it, although Experian might if you send them a tenner.

If you want to improve your credit history, you need to start using credit responsibly.

What's your current situation? What's the state of your files?

Ptchanda

Thank you - I am on 279 score with 2 small ccjs (water and communication bills) and a total of just over £10K in debt. I have repayment plans in place and paying.

bradders1983

You want to PAY a company to help improve a number a) the credit reference agencies make up, b) lenders dont see, and thetrefore c) dont use that three digit score to make a decision?

No. A world of no. Do not waste ONE penny on this.

Some of the reviews are absolutely laughable:

“Results? In less than 2 months, my credit score went up by 44 points - 4£/m.

Will upgrade soon"

£4 a month to watch a made up number go up 44 points, absolutely unbelievable. Mine can go up/down 20 points at a time for absolutely NO reason and it can fall hundreds merely because you change your address, it means nothing.

[Deleted User]

Ptchanda said:

Thank you - I am on 279 score with 2 small ccjs (water and communication bills) and a total of just over £10K in debt. I have repayment plans in place and paying.

Settle the CCJs.
Pay off the debts.
Ignore the score.

Once you've done all that, you can think about building some good history, but right now, you don't need more credit.