Topic: How to improve a bad credit score

[Barneylfc∗]

So I've got a poor credit score and want to sport it out. Anyone give any proper advice on how to do it?

I've read bits on moneysupermarket and the like. I've done a few things buy still can't get anything.

I got a free trial with equifax last week.

 The only things on there ate a defaulted phone contract from 2006 and a credit card. With the phone, I ran up a bill and didn't pay it. Left it for years. But I paid it all off last year. The contract was with Orange, and Rossendales took over the debt. I emailed equifax and they said the lender will send them a report to update the credit file which gets done once a month. But this is still showing as defaulted rather than settled. Who do I need to contact to rectify this?

The credit card is one of those high interest credit builder jobs. Never missed a payment on it since last April. Surely this counts for something?

I'm on the electoral roll since last January, but don't really know if there's much else I can do? Does an overdraft affect it? It doesn't show on that equifax site that I've got one. When I get my monthly wage, it puts my back to being in credit, but throughout the month, normally within 5 days, I'm living off the overdraft. If I got this paid off, would that help my credit score?

I was never able to get credit before the phone in 2006 (i had tried before, and got the phone by chance because their systems were fucked that day) so I've no idea where it went tits up.

[Paulie's Wallnuts]

The defaults stay on your credit file for 6 years. The VR will help massively but if you want finance any time soon, you need to apply for small items and pay the off immediately. Store cards, mobile phones etc.

There is a credit card you can use to build up your credit rating but you need to buy stuff and pay it off immediately. Link is http://www.vanquis.co.uk/credit-cards/?ref=GO_AT&aff=Sub-Prime-Exact-credit_card_for_bad_credit&_$ja=kw:credit+card+for+bad+credit|cgn:BAU+-+Bad+Credit+Credit+Card|cgid:2289948398|tsid:38762|cn:BAU+-+Vanquis+Sub+Prime|cid:17107298|lid:26012580|mt:Exact|nw:search|crid:16968199598&gclid=CODeiJCFp7cCFfLKtAodhj8Apg

Overdrafts generally aren't shown on your credit file but paying it off probably wouldn't hurt.

[Barneylfc∗]

The defaults stay on your credit file for 6 years. The VR will help massively but if you want finance any time soon, you need to apply for small items and pay the off immediately. Store cards, mobile phones etc.

There is a credit card you can use to build up your credit rating but you need to buy stuff and pay it off immediately. Link is http://www.vanquis.co.uk/credit-cards/?ref=GO_AT&aff=Sub-Prime-Exact-credit_card_for_bad_credit&_$ja=kw:credit+card+for+bad+credit|cgn:BAU+-+Bad+Credit+Credit+Card|cgid:2289948398|tsid:38762|cn:BAU+-+Vanquis+Sub+Prime|cid:17107298|lid:26012580|mt:Exact|nw:search|crid:16968199598&gclid=CODeiJCFp7cCFfLKtAodhj8Apg

Overdrafts generally aren't shown on your credit file but paying it off probably wouldn't hurt.

Yeah that's the credit card I got last year. Never defaulted on any payments, always made well on time and for more than the minimum amount.

Taken from another forum

Time at address - the longer the better and stability is a major plus
Residential Status - homeowner is best obviously, followed by Living With Parents, then tenant

I always put in my mums address, and that I've been there for about 17 years

Time in job - again, stability is best
Type of job - you get a better score if you work for the Govt (school, council etc..)
Time with bank - again, this enhances your score

I've been in my civil service job for 4 and a half years now, and with my bank for about 15 years. They rejected my application for a £2k loan 3 months ago

What WILL show up are mobile phones, Virgin/SKY, monthly car insurance, credit cards, loans, overdrafts, mortgage, HP.

Only ever had that one mobile phone mentioned above. Have had Sky/Virgin for 5 years now, and again, never missed a payment. Car Insurance I've had for 14 months. Overdraft I've had for 4 years. When I get paid, it puts me in a couple of hundred quid credit for about 4 or 5 days, but then I go back into the overdraft for the rest of the month.

Dont really know what more I can do apart from pay the credit card and overdraft in full. But the overdraft diodnt show on the credit report I got last week, neither did any historical Sky info/Car insurance payments. Literally just the credit card which was all green, and the phone which I defaulted on.

With the phone debt being taken over by a collection agency, is the onus on them to notify the credit ref agency, or is the onus still with Orange, who the contract was with?

[Barneylfc∗]

Got my most recent credit score at the end of November. I was in the middle of the scale, think it said 'fair' or 'good'. Tried applying for a Very account last night, and got rejected. Doing my fucking head in this. I was able to get finance for a car back in July, after I started this thread. Still haven't missed any payments on anything, but can't get a bastard store card? I have money in my savings account that I could use towards paying off all my credit card, but I need that towards a deposit for buying my house. I'm guessing it would be better to pay the card off ASAP?

[stevienash]

Got my most recent credit score at the end of November. I was in the middle of the scale, think it said 'fair' or 'good'. Tried applying for a Very account last night, and got rejected. Doing my fucking head in this. I was able to get finance for a car back in July, after I started this thread. Still haven't missed any payments on anything, but can't get a bastard store card? I have money in my savings account that I could use towards paying off all my credit card, but I need that towards a deposit for buying my house. I'm guessing it would be better to pay the card off ASAP?

I would advise to pay off the credit card and what you were paying off the card pay yourself back if that makes sense?

[rob1966]

Got my most recent credit score at the end of November. I was in the middle of the scale, think it said 'fair' or 'good'. Tried applying for a Very account last night, and got rejected. Doing my fucking head in this. I was able to get finance for a car back in July, after I started this thread. Still haven't missed any payments on anything, but can't get a bastard store card? I have money in my savings account that I could use towards paying off all my credit card, but I need that towards a deposit for buying my house. I'm guessing it would be better to pay the card off ASAP?

I'd get proper advice on paying off the card, I wouldn't want to waste the money you've saved. From reading higher in the thread and also from my own experience, I get the impression that so long as the balance is reducing each month its OK - I'd pay more than the minimum though. I've got an excellent credit score and I think thats down to having a loan or card on the go for the last 26 years.

My missus really struggled to get a crdit card as she's always paid cash, she even had her own house where she paid £65k in cash and mortgaged the outstanding £80k, but couldn't get a card. Once we managed to get her a card and then made regular, higher than minimum, payments, she's had no problems getting more cards.

[81a]

No expert - but if improving your credit score is the main goal then there is no need to pay off credit cards every month.

As Rob1966 points out paying what you can afford on a credit card every month on time, without missing a payment is more likely to improve your credit score rating than paying it off in one go.

It won't improve your finances in the short term because you'll be paying interest but will likely improve your rating.

Also don't get a card and don't use it. Keeping a card active helps your credit rating. If you have a few different cards spread your spending out so they are all used at least once every 2 or 3 months, a small charge to a card paid off over a couple of months helps.

[Alan_X]

A word of warning. Don't pay off more than you can afford if it leaves you short. A few years back things were tight and I made an arrangement to pay off a credit card. I made the mistake of making a double payment when I was flush one month then couldn't afford a payment the following month. Rather than be sensible they treated it as a default and I ended up with a fucked up rating for six years. Higher mortgage rates and difficulty getting credit.

[Jimmy Conway]

I hear the trick is to get a card from the likes of Capital One (the one with about 30-40% APR). Then spend 25% of the credit limit every month and pay it back in FULL EVERY month without fail.

My dad was shcoked to hear he had a poor credit score, not because hes a bad debtor......but because he never used credit in the past.

[Jimmy Conway]

www.noddle.co.uk is a free laternative to Equifax and Experian.

[Barneylfc∗]

www.noddle.co.uk is a free laternative to Equifax and Experian.

Tried them before. Wouldn't give me an account.

[Col]

I hear the trick is to get a card from the likes of Capital One (the one with about 30-40% APR). Then spend 25% of the credit limit every month and pay it back in FULL EVERY month without fail.

My dad was shcoked to hear he had a poor credit score, not because hes a bad debtor......but because he never used credit in the past.

That's what I do. I only ever put my petrol on it, then pay it off as soon as I use it.

Been doing it for a few months now, but not long enough to register any kind of credit score.

How long does it take to 'build' a credit score, once you start using credit? (ie, actually have a number you can check as opposed to "not enough information")

[Barneylfc∗]

That's what I do. I only ever put my petrol on it, then pay it off as soon as I use it.

Been doing it for a few months now, but not long enough to register any kind of credit score.

How long does it take to 'build' a credit score, once you start using credit? (ie, actually have a number you can check as opposed to "not enough information")

At the time of posting this thread, I had an abysmal rating. Cant remember the actual score, but it has went up a good bit since. Not enough to get me an online catalogue account though

[paddysour]

My dad shares my name and has a terrible credit rating. Completely fucks me over since we shared an address and a name. You think it wouldn't be too difficult to actually look at D.O.B's 

[jason42]

At the time of posting this thread, I had an abysmal rating. Cant remember the actual score, but it has went up a good bit since. Not enough to get me an online catalogue account though

Honestly mate? I would advise you not to get the catalogue account because it is all too easy to get things on there and before you know you owe them a shitload of money. Yes, they offer 100 week terms but their prices are already considerably higher than normal shops. I finally managed to get our catalogue paid off and I feel so much better now.
The mantra is that if you can't afford to buy it outright now, then you shouldn't buy it (easier said than done I know).

[Barneylfc∗]

Honestly mate? I would advise you not to get the catalogue account because it is all too easy to get things on there and before you know you owe them a shitload of money. Yes, they offer 100 week terms but their prices are already considerably higher than normal shops. I finally managed to get our catalogue paid off and I feel so much better now.
The mantra is that if you can't afford to buy it outright now, then you shouldn't buy it (easier said than done I know).

Only reason I tried to get one was a deal with very.co.uk. Open a credit account, spend £50 and get £25 off. Was paying it up front, but they rejected me instantly anyway.

I've got 4 things on my report. Up to date without missing a payment on every one of them.

[Alan_X]

Only reason I tried to get one was a deal with very.co.uk. Open a credit account, spend £50 and get £25 off. Was paying it up front, but they rejected me instantly anyway.

I've got 4 things on my report. Up to date without missing a payment on every one of them.

Which credit rating agency are you using? There are two and they work in slightly different ways.

[Barneylfc∗]

Which credit rating agency are you using? There are two and they work in slightly different ways.

Using Equifax mate. According to them, I'm sound. Not brilliant, but there's nothing there to suggest I won't pay anything. Seemingly not.

[Millie]

Only reason I tried to get one was a deal with very.co.uk. Open a credit account, spend £50 and get £25 off. Was paying it up front, but they rejected me instantly anyway.

I've got 4 things on my report. Up to date without missing a payment on every one of them.

Are you sure no one else in your household already has an account with Very or one to their affiliates?  They sometimes only allow on account per address.

[Barneylfc∗]

Are you sure no one else in your household already has an account with Very or one to their affiliates?  They sometimes only allow on account per address.

It let me open an account ok. Just not a credit account. Only reason I wanted it was to buy 12 months xbox Live, and a £15 xbox voucher. Could have got it for £25 which I was paying straight away, but can only get the discount if you get a credit account.

Considering switching to Experian to see what they hold. £15 a month for that though isnt it?

[rob1966]

It let me open an account ok. Just not a credit account. Only reason I wanted it was to buy 12 months xbox Live, and a £15 xbox voucher. Could have got it for £25 which I was paying straight away, but can only get the discount if you get a credit account.

Considering switching to Experian to see what they hold. £15 a month for that though isnt it?

You can get a free one months trial with Experian and then cancel it, thats what I did.

http://www.experian.co.uk/hp/index-c.html?&expReferrer=http%3A%2F%2Fwww.google.co.uk%2Furl%3Fsa%3Dt%26rct%3Dj%26q%3D%26esrc%3Ds%26source%3Dweb%26cd%3D1%26ved%3D0CEYQFjAA%26url%3Dhttp%253A%252F%252Fwww.experian.co.uk%252F%26ei%3DYpTJUqn2KqfD7Aat5oHgDw%26usg%3DAFQjCNHzvGGPQXv-_SWOObkO3suEO2V4Iw%26bvm%3Dbv.58187178%2Cd.bGQ

[Sorted!!]

It let me open an account ok. Just not a credit account. Only reason I wanted it was to buy 12 months xbox Live, and a £15 xbox voucher. Could have got it for £25 which I was paying straight away, but can only get the discount if you get a credit account.

Considering switching to Experian to see what they hold. £15 a month for that though isnt it?

You can get a 30 day trial with Experian right now and then it's £9.99pm thereafter.

I'm using Noodle right now and I'm surprised that they turned you down, even if it was free. Fire them an email or something to get the reasons for the rejection. Do they hold something on you that isn't showing on Equifax?

[Barneylfc∗]

Managed to get a Barclaycard with 0% interest on Balance Transfers for 30 months. So I've transferred my balance from the Vanquis card to that. No 39% interest anymore 

Anyway, I got my text from Vanquis on 15/03 telling me my next payment should be £52.13 by 07/04.
Got another text from them today "did you know your balance is £30.70 and your available credit is....."

So do I still have to pay the £52.13, or am I safe to pay the £30.70?

[Azi]

Managed to get a Barclaycard with 0% interest on Balance Transfers for 30 months. So I've transferred my balance from the Vanquis card to that. No 39% interest anymore 

Anyway, I got my text from Vanquis on 15/03 telling me my next payment should be £52.13 by 07/04.
Got another text from them today "did you know your balance is £30.70 and your available credit is....."

So do I still have to pay the £52.13, or am I safe to pay the £30.70?

i think the £52.13 is your minimum payment mate, so that needs to be paid otherwise they can cancel your offer 0% for  30 months

[ollick]

i think the £52.13 is your minimum payment mate, so that needs to be paid otherwise they can cancel your offer 0% for  30 months

Give them a call mate, not worth the risk for the price of the call.

[Barneylfc∗]

i think the £52.13 is your minimum payment mate, so that needs to be paid otherwise they can cancel your offer 0% for  30 months

Maybe I didn't explain properly.

I had a balance of about £1100 on my vanquis card.

I applied for a Barclaycard and was accepted, and that is the 0% on balance transfers for 30 months. So I transferred my vanquis balance, £1100, to the Barclaycard.

Before the transfer was made, I got my monthly text from Vanquis saying my next payment is £52.13.

The Barclaycard is now active, and the transfer of 1100 has been made. Got a text from Vanquis today saying my balance is £30.

So should I still pay the £53, which will put me in credit with Vanquis, or pay the £30, which will put me to £0.00. Does the balance transfer count as a payment made by me to Vanquis?

[Mumm-Ra]

Jesus, just call them up.

[Barneylfc∗]

Jesus, just call them up.

 

[Alan_X]

Jesus, just call them up.

[Ziltoid]

[gazzam1963]

Maybe I didn't explain properly.

I had a balance of about £1100 on my vanquis card.

I applied for a Barclaycard and was accepted, and that is the 0% on balance transfers for 30 months. So I transferred my vanquis balance, £1100, to the Barclaycard.

Before the transfer was made, I got my monthly text from Vanquis saying my next payment is £52.13.

The Barclaycard is now active, and the transfer of 1100 has been made. Got a text from Vanquis today saying my balance is £30.

So should I still pay the £53, which will put me in credit with Vanquis, or pay the £30, which will put me to £0.00. Does the balance transfer count as a payment made by me to Vanquis?

The £30 looks to me like the final months interest on your £1100 balance that you've transferred . You need to make a payment to them , deffo call them otherwise you will get a missed payment Mark . Just pay the £30 and your finished with them

[Yolanderyolando]

itsa just the 30 you need to pay.

[Barneylfc∗]

Got a text on Saturday afternoon saying my new balance is £30.70, your next payment is £0.00 and is due on 07/04. SO turns out I didnt have to pay anything. Have paid the £30.70 anyway to get rid of the fuckers. The card has served it's purpose, despite it costing me bucket loads of money 

[Barneylfc∗]

It has only taken 4 years, but I'm finally up to good from poor with Experian. Load of shite this is.
2 cars, 3 credit cards, an Argos card and a couple of other things is all it took 

[CraigDS]

They are a load of shite.

I've taken out a new contract with EE, which is my first new contract in a long while (average age of all my contracts is 67 months) but apparently this has dropped my score by like 80+ points!!

[RJ320]

My score was piss poor so got myself a Barclays credit card with 0% purchases. Been making small purchases on it and paying back on time every month, my ratings have shot up by about 250, putting me in the Fair category.

Still got no idea how the credit card works though. All this minimum balance, account balance malarkey confuses the shit out of me.

[Salger]

I never checked my actual credit score but knew it was pretty bad because the interest rates I kept getting quoted for things were way more than those advertised.
I had a big balance on a credit card for ages at about 20% interest and have recently taken out two 0% interest cards and transferred the balance over. I figured I'd just pay the minimum amount on them each month but should I be making small purchases every now and then to improve my credit score?

[Crosby Nick]

From memory it helps to use credit and pay it off when you can. Shows your active and have a good payment history. Not sure if only paying the minimum reflects badly, missing payments is far more damaging to a credit score and stays on your profile quite a while I think.

[Wigwamdelbert]

I never checked my actual credit score but knew it was pretty bad because the interest rates I kept getting quoted for things were way more than those advertised.
I had a big balance on a credit card for ages at about 20% interest and have recently taken out two 0% interest cards and transferred the balance over. I figured I'd just pay the minimum amount on them each month but should I be making small purchases every now and then to improve my credit score?

If you have zero % cards, then don't just pay minimum each month. Divide the balance out by the number of months you have on the promotional rate, then pay that amount, so if you had 20 months at 0% for £2000, the best thing to do is pay £100 per month. Improves your credit and gets rid of the debt.

[gazzam1963]

I use clear score now which gives you a monthly update and alerts if anything Happens on your file . No fee at all for it seems pretty good .