Credit file repair

Timmyt82 · 13 August 2018 at 7:37PM

Hi,

Would anyone know if it is possible to build my credit rating in 4 months?

Looking at a new build house which will be released in December and would need to get an joint agreement in principle.
My partner has no debt or loans (good rating) and we both have a sizeable deposit (30%)

I have no defaults (last was 4yrs ago) and credit card and loan payments are up to date.
I do frequently go into my agreed overdraft but my wage clears that every month, I am close to my limit on my credit card but focus is to clear that by December.
My credit file says that I have made too many applications in a short period of time and credit utilisation is high.

So if I stop spending, clear credit card and stop applying for credit - will my file improve in time?

[Deleted User] · 13 August 2018 at 7:52PM

Stay out of your overdraft.
Once you've cleared your card, use it regularly and clear in full each month.
Ignore the scores and ratings. They don't exist.

Everything else will come down to the detail, so if you thing his circumstances are patchy, use a broker.

sparkey1 · 13 August 2018 at 7:58PM

Stop spending - Lenders will want to check your spending habits. If you spend £300 a month, every month, just because you say you wont spend it.... you will and they know you will! They will take an average over the last three months, so live well below your means!

Clear credit card - How much are we talking? Two thresholds to get below. 50% and 30% credit utilisation. You do not normally need to clear a credit card to get a mortgage. However no point in paying debt interest.

Stop Applying for credit. Yes stop. You said it yourself. Stop applying!!!

In the meantime, make sure you are on the electoral roll.

Timmyt82 · 13 August 2018 at 9:24PM

Thanks, most spare cash will go towards clearing the debts I have - card has £1200 on it and overdraft £1500 so will try to clear both or at least reduce below 50%.

Would you think my chances of acceptance will increase if take advice and do the above?

Thanks in advance.

[Deleted User] · 13 August 2018 at 9:30PM

Impossible to say - far too many variables in a mortgage application (income, outgoings, history, affordability, valuation and so on).

But better than if you staying your overdraft and keep maxing out your card.

sparkey1 · 13 August 2018 at 9:36PM

Assuming your overdraft is the most expensive debt, and that people use overdrafts when they have no money, paying the overdraft is more important.

Who is the overdraft with? How much is it?

Timmyt82 · 13 August 2018 at 9:43PM

Thanks, it!!!8217;s my current account where my wages are paid into and the overdraft is £1500. Will have to split payments.

Nebulous2 · 14 August 2018 at 7:49AM

Can you clear the overdraft from your deposit and then pay it back?

Sncjw · 14 August 2018 at 5:29PM

Assuming your living in your overdraft? How can you clear that and the card at the same time. You will have clear the overdraft and then not spend for a month to have a positive bank balance. Then the next month save that up and then the next you can use that to pay off the card so that would be about 4 months. I would say you would need a possitive balance to ensure your out of your overdraft.

Credit file repair

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free