rebuilding of credit score.

asandwhen

My partner had a few problems with debt a couple of years ago (when she left her previous partner) we worked hard over the last 2 years to pay everything off - She is now completely debt free but her credit rating is not great (could be alot worse but some of the companys didnt tell the credit ref agencys about the problems) we have checked with all 3 - she still has one of the credit cards from the "dark days" a halifax credit card - it has a "ZERO" balance but she wanted to rebuild her credit so we can buy a house togather in 2 years - would it be a good idea to use this card and pay it off in full every month to rebuild the credit or would it be better to cancel the card and get a new one to rebuild the credit.

YorkshireBoy

asandwhen wrote:

...would it be a good idea to use this card and pay it off in full every month to rebuild the credit or would it be better to cancel the card and get a new one to rebuild the credit.

** Don't cancel the card whatever you do.**

You may not get one from anywhere else if her past "problems" were bad. Do as you say, pay off each month (at least minimum payment) on time and her record will be fully restored to A1 condition in another 4 years.

If you are buying a house together in 2 years, and your credit is good, they might not be "as" concerned about something that happened 2-4 years ago, was settled, and she has since managed credit satisfactorily .

Good luck

asandwhen

Thanks for that - do halifax report good accounts to the credit reference agencys - I know that a few dont (Lloydstsb, HSBC)

Ember999

asandwhen wrote:

Thanks for that - do halifax report good accounts to the credit reference agencys - I know that a few dont (Lloydstsb, HSBC)

Yes, Halifax DO report to the credit reference agencies and now both HSBC and LLoyds TSB are reporting credit histories to all 3 credit reference agencies.

YorkshireBoy

Ember999 wrote:

Yes, Halifax DO report to the credit reference agencies and now both HSBC and LLoyds TSB are reporting credit histories to all 3 credit reference agencies.

We've discussed this recently Ember - the "6 year" criteria - do you remember?

I thought, based on my recent CRA report, that LTSB did NOT report (good) CC history, even if you've been there less than 6 years?

PS: Apologies to the OP for taking this off topic.

Ember999

YorkshireBoy wrote:

We've discussed this recently Ember - the "6 year" criteria - do you remember?

I thought, based on my recent CRA report, that LTSB did NOT report (good) CC history, even if you've been there less than 6 years?

PS: Apologies to the OP for taking this off topic.

I am a bit confused by it all YorkshireBoy. As far as I was aware, HSBC and LLoyds TSB never disclosed your credit commitments via Credit Reference agencies if you were a good payer etc. However, i was notified by news on this site that from 1st August both LLoyds TSB and HSBC were joining ranks with the rest and were going to report on everyone's credit history from August. However, I have checked my credit ecpert a/c (Experian) and neither my First Direct nor LLoyds TSB commitments are showing. I have no idea what is happening, do you? Some people are saying they are now showing, others such as myself, they are not. Had First Direct credit card approx 10 years (current a/c with them 14 years I think) and LLoyds Tsb credit card about 4 years....not ever missed any payments though, my history is squeeky clean with all my accounts, so maybe that is why they are not showing? But this new ruling of showing all accounts from 1st August was supposed to be having them show even 'good' accounts which previously were kept hidden, such as mine etc. I am still confused

cos_2

I work in IT, not with the banks I assure you, but must say it takes a lot of work to change the bosses' statements into delivering the goods to the customers!