Improving credit score advice

oliel

Im wanting to try and improve my credit score I have about 10 months left on a loan which i am overpaying to pay off as soon as i can so that I can then start paying more off my credit cards which are mostly at 0%.   My credit score is low as I'm utilising alot of my credit - at the moment im only paying minimum payments on cards as im concentrating on paying off my loan first. would paying a little extra on each of my cards help improve my credit score?  Thanks

Brie

The score itself is immaterial.  You are the only one that sees it, the banks couldn't care less.  What they do like to look at is your credit history so that's what you need to improve.  

Yes I think that it will be obvious that you are paying the minimum on your cards so I suggest you pay a bit more.  What I have done is set a DD payment to be made each month.  So say your minimum DD required is £99.  You can set your DD (hopefully) to take £100 every month instead.  When your minimum required gets down to £89 you can reset your DD to £90.  It shows that you are actively managing your debt which makes you look less risky.  

Also as your CCs get paid off look at lowering your credit limit.  Again this makes you less of a risk as the problem will always be that you can use your entire limit.  The less limit you have the more affordable it is for you to pay off.  If you want another card to get a new 0% deal some time next year you have to be able to afford all of your credit limits whether you are using them or not as well as whatever the new card might give you.  Plus your overdraft, plus your phone contract, plus your monthly motor or house insurance.  

Make sure also that you are registered to vote - it adds to making you look stable and again less of a risk.  

fatbelly

Don't worry about your score. Your aim is to get debt-free.

Moving all the credit card debt to 0% and overpaying the loan to the max is the way to go.

Just make sure you don't miss a payment. On my credit cards I have a d/d for the minimum and make an extra payment each month.

Electoral roll and stable address will help. Your credit history obviously isn't too bad or you wouldn't be getting the 0% deals, despite what your CRA is telling you 

ManyWays

when do the credit card 0%s end?
what is the interest rate on the loan?

oldandwizend

I would agree with other forumites who say your credit score is immaterial and, i would go so far as to say, of no real worth at all.
Experian have just advised me that my score has dropped from previous month despite the fact that my personal circumstances are the same, my debt is lower, my bank balance higher and no 'hard', or even 'soft', searches have been made.
This only enforces my view that, whilst they might assist financial institutions in assessing an individuals suitability for a loan etc,, credit agencies are not a totally reliable source of an individuals 'affordability'!  Mind you, they do make a lot of money out of their services!

Rob5342

My experience is that the scores have very little worth. Equifax say my score is 876 vs a uk average of 585, given I have four defaults I have no idea how they worked that out. I know the scores don't mean much as lenders dont look at them and make their own decisions, but even as a finger in the air guide to how credit worthy you are they seem way off