Ways to improve credit in 5 months

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LiamTLOU
LiamTLOU Posts: 24 Forumite
edited 9 December 2019 at 11:58PM in Credit file & ratings
Hey guys,

I am buying a car through an auto-loan next year. I have 5 months to improve my credit score and wondered how you guys have personally raised your credit scores. I know there are lots of articles out there, but I am interested for your own personal ways that you have done this.

I have signed up for an electoral role and have open accounts on my current car and some other bits and bobs, but my score isn't really improving too much.

I was wondering maybe going down the line of putting all my monthly spendings on a credit card, then just paying that off at the end of each month. If that's a good way of doing it, what credit cards are the best to get for that scenario?

Thank you
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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    That's the best way to use a card.

    Other than that, reduce or eliminate your existing debts on your car, your bits and your bobs.

    The score isn't used in lending and is a very poor indicator so don't worry about that no changing.
  • Ben8282
    Ben8282 Posts: 4,821 Forumite
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    You have finance on your existing car. You possess a credit card. You have other 'bits and bobs'.
    Why are you so concerned about your credit score? Have you recently been experiencing problems in obtaining credit?
  • LiamTLOU
    LiamTLOU Posts: 24 Forumite
    edited 8 December 2019 at 5:47PM
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    Ben8282 wrote: »
    You have finance on your existing car. You possess a credit card. You have other 'bits and bobs'.
    Why are you so concerned about your credit score? Have you recently been experiencing problems in obtaining credit?


    I don't posses a credit card yet. I am thinking of getting one. I have not had trouble getting credit, I am just looking to get as best a interest rate as I can on my motor loan.

    I'm 23 and my credit score is considered "good" but haven't been actively trying to work on it. Thought if I have 5 months to play with, may a well work on it if it may save me money.
  • Ben8282
    Ben8282 Posts: 4,821 Forumite
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    edited 8 December 2019 at 5:46PM
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    LiamTLOU wrote: »
    I have signed up for an electoral role
    .

    What role do you intend tp play?
    You were lucky to get the finance on your current car if you were not on the electoral roll at the time.
    LiamTLOU wrote: »

    I was wondering maybe going down the line of putting all my monthly spendings on a credit card, then just paying that off at the end of each month.

    This Is a good idea if done for reasons of budgeting etc and not for the purpose of boosting some imaginary score.
    LiamTLOU wrote: »
    I am just looking to get as best interest rate I can on my motor loan.
    When your existing car finance is repaid you will find it easier to get new finance for your next car. You will not get a good rate on 2nd finance if 1st finance is still outstanding.
    Also make sure you repay your bits and bobs on time and don't miss any payments and don't exceed any credit limits and if balances are involved reduce them.
  • LiamTLOU
    LiamTLOU Posts: 24 Forumite
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    Ben8282 wrote: »
    What role do you intend tp play?
    You were lucky to get the finance on your current car if you were not on the electoral roll at the time.



    This Is a good idea if done for reasons of budgeting etc and not for the purpose of boosting some imaginary score.

    When your existing car finance is repaid you will find it easier to get new finance for your next car. You will not get a good rate on 2nd finance if 1st finance is still outstanding.
    Also make sure you repay your bits and bobs on time and don't miss any payments and don't exceed any credit limits and if balances are involved reduce them.

    I will have paid my current car off next month, then am saving for the next 4 to fully pay for my insurance and put a nice-ish deposit down on my next car. Then when May comes I'll have my 2 years no claims that will help with my insurance.

    While the score is imaginary, it seems that they still take it into account, even if it is a load of !!!!!.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    LiamTLOU wrote: »
    While the score is imaginary, it seems that they still take it into account, even if it is a load of !!!!!.

    No lenders will take it into account in the UK. That's a US thing only.

    Here, it's all about the data on your files.
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    LiamTLOU wrote: »
    While the score is imaginary, it seems that they still take it into account, even if it is a load of !!!!!.


    Can you find me a lender who does take notice of the score ?


    What if the lender checks the 3 credit reports at the 3 agencies, how would the rate you get offered be determined ?


    Can you not save up for the loan ?
  • LiamTLOU
    LiamTLOU Posts: 24 Forumite
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    Deleted_User wrote: »
    No lenders will take it into account in the UK. That's a US thing only.

    Here, it's all about the data on your files.

    A lot of the articles I have read said they do take it into account. If they in fact do not in the UK, then that makes it easier for me. Thank you for educating me.
  • Ben8282
    Ben8282 Posts: 4,821 Forumite
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    LiamTLOU wrote: »
    A lot of the articles I have read said they do take it into account. If they in fact do not in the UK, then that makes it easier for me. Thank you for educating me.
    These articles may well have been written by those wishing to sell you products to improve your credit score for their own financial gain.
    Your credit score cannot be taken into account as potential lenders don't see it. It is strictly for your eyes only. When you make an application for credit and a credit check is carried out the credit score provided to you by the CRA's is NOT provided to the lender. Only the information contained in your credit files is provided..
  • yksi
    yksi Posts: 1,024 Forumite
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    LiamTLOU wrote: »
    A lot of the articles I have read said they do take it into account. If they in fact do not in the UK, then that makes it easier for me. Thank you for educating me.
    They can't see it - I'm a member of five different "credit score" websites and all five have a different score for me.

    The score is made up by that particular website and is used to entice you to buy their advice on how to improve your score (which again, is seen by only you). However, the score IS broadly based on your credit history. The thing is, one website might give extra points for having the mobile provider for five years, and another might give more points for the fact that you have only one credit card.

    Each of those is fairly useless for a bank which is more interested to see whether you've ever successfully paid off a personal loan. Meanwhile, ABC bank won't touch you if you owe more than £1000 in credit, while XYZ bank likes you if you struggle to pay off your credit card (because they'll make lots of interest off you).

    See why there's no such thing as a "good" rating?

    There's things you do and don't want in your history though. Have a look at https://forums.moneysavingexpert.com/showthread.php?p=76555287
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