Boromir Posted August 28, 2011 Report Share Posted August 28, 2011 I had been a bad boy in the past and got a CCJ for not paying my council tax(I had a good reason). Along on top of this Scottish Power tried to sting me out of some money and I didnt pay it as I didnt owe them it but they didnt listen and I think they put a record on my credit file, eventually they gave the money that they owed me when I went to CAB. The other one was not my fault either was Virgin media I went to set up a direct debit with them got a letter saying that it was set up alright, only to be charged £10 late payment fee, I did pay it straight away once id known about it. Apart from these my other bills like Rent, mobile phone contract, car insurance, BT and a loan have been all paid on time. I have not or never had any credit or store cards. Is there any tips on how to now improve my credit rating? I am planning to buy a house within the next 3 years but I fear I probably wont get a mortgage with a low score. Thanks. Quote Link to comment Share on other sites More sharing options...
apache Posted August 28, 2011 Report Share Posted August 28, 2011 First thing is to get a copy of your credit rating. If something is wrong it can be put right by writing to the company with evidence. I would then advise you to take out a credit card now and use it. There are 2 issues, your past and lack of recent activity. A credit card that you pay off looks good and builds your good history. Quote Link to comment Share on other sites More sharing options...
working dog Posted August 28, 2011 Report Share Posted August 28, 2011 Experion did have a free trial of their credit rating service where you can check your rating on line. Once you've used it you just need to phone some call centre to cancel the service. Quote Link to comment Share on other sites More sharing options...
Boromir Posted August 28, 2011 Author Report Share Posted August 28, 2011 First thing is to get a copy of your credit rating. If something is wrong it can be put right by writing to the company with evidence. I would then advise you to take out a credit card now and use it. There are 2 issues, your past and lack of recent activity. A credit card that you pay off looks good and builds your good history. Thats the problem I have asked for a credit card from my bank and they rejected me, one from Capital one and again they have so as well. I have applied for another one that offers upto £500 credit that would be ideal as I am only wanting to use it for emergencies and buying small purchases and paying them off, just want to improve my credit rating. After this one Im not gonna apply for anymore as I have heard that it damages your rating even more. Also I have looked into these prepaid credit cards and some offer a credit builder service. Are these any good? Quote Link to comment Share on other sites More sharing options...
Wildfowler12 Posted August 28, 2011 Report Share Posted August 28, 2011 This credit score business really winds me up... I've never missed a payment in my life, rent, gas, electric, water, council tax, virgin, phones, broadband THE LOT. I've had 2 loans which were both paid off early, again never missed a payment. But because I've never owned a credit card, I'm classed as a high risk lender and have to pay high interest rates!!! Yet a friend of mine who has several credit cards, has missed payments in the past, has just got a loan on 6.9% rate!! RUBBISH!! Quote Link to comment Share on other sites More sharing options...
Boromir Posted August 28, 2011 Author Report Share Posted August 28, 2011 This credit score business really winds me up... I've never missed a payment in my life, rent, gas, electric, water, council tax, virgin, phones, broadband THE LOT. I've had 2 loans which were both paid off early, again never missed a payment. But because I've never owned a credit card, I'm classed as a high risk lender and have to pay high interest rates!!! Yet a friend of mine who has several credit cards, has missed payments in the past, has just got a loan on 6.9% rate!! RUBBISH!! Ive been doing a little bit more looking up on internet and heard that a CCJ from Council tax does not go on your credit file. Is this true? Apart from this though all the other payments was not my fault, so might have a look at my credit file myself and see if they can remove these. Quote Link to comment Share on other sites More sharing options...
al4x Posted August 29, 2011 Report Share Posted August 29, 2011 Look up credit expert its where you can view your file. Then you can see what is there and work on it. Mortgage wise I had one incoRrect entry indicating an aRrangement to pay agreement with a bank and that would have stopped a recent mortgage had I not got it removed. That's despite a 6 year history of paying a mortgage with the same provider and no other debts. Now is the time to understand it and get it sorted Quote Link to comment Share on other sites More sharing options...
nabbers Posted August 29, 2011 Report Share Posted August 29, 2011 You don't get a County court judgement for council tax, that goes through the magistrates courts and they don't issue CCJ's. A late payment gets recorded as a late payment and eventually a default if you never pay it. I didn't pay Scottish Power for the same reasons, that didn't go on my file. What makes you think you have bad credit, have you tried to borrow and been refused? Lenders are being pretty tight at the moment anyway. Go to Which online and get a copy of your credit file and rating free, don't forget to cancel in 30 days or they will charge you every month for a new one. Quote Link to comment Share on other sites More sharing options...
Kes Posted August 29, 2011 Report Share Posted August 29, 2011 You are right though you do need to build a credit history. I applied for a credit card at 0% to save some cash on a payment (avoiding a tax liability) and was advised that as I had not had a credit card before, I was an 'unknown quantity' and therefore likely to be refused. I wrote to the bank and asked for a credit reference for one particular card - sent that in with an application and got the card. All this despite never having missed a payment on anything in 30 years, even by accident - it makes me laugh. 5 years ago, like everyone else, I used to get unsolicited mail asking if I'd like a loan for 50k, the following day. Quote Link to comment Share on other sites More sharing options...
tjsc Posted August 29, 2011 Report Share Posted August 29, 2011 Hi I would concentrate on the supposedly 'bad ones' you had and get them cleared up, write and explain what is happening and get them sorted out. A couple of years ago i was 'hocked up' to the hilt, hardly a penny to myself, all my money was paying things off, applied to experian for that 3 months free trial, thinking I would have the lowest of the low credit ratings.......turned out my score was better than brilliant!! does'nt make sense!! TC Quote Link to comment Share on other sites More sharing options...
four-wheel-drive Posted August 29, 2011 Report Share Posted August 29, 2011 (edited) Some thing strange I heard about credit cards and the more you have as long as you pay them off each month the better your credit worthiness rating is. The strange part was they said that it is bad for your record if you choose to close an account ie if you had 4 cards and decided that you could get by with just two in there twisted minds they think this person is closing 2 cards down it could be that they are having problems so they bump up your ratting. That is what the chap said on the radio some time ago I had 3 at one time but I only use 1 mostly for buying things on the internet I never bothered to close the other two one of them they closed down after several years of not being used the other when I got the new card I have not phoned them to verify it. For most other things I use my debit card one thing I do use my credit card for though is buying petrol in garages that I do not usually use as that tends to be where they get you details to clone your card. Edited August 29, 2011 by four-wheel-drive Quote Link to comment Share on other sites More sharing options...
Snap Cap Posted August 29, 2011 Report Share Posted August 29, 2011 Each time you apply for credit the company will check your credit rating, this leaves a "footprint" on the file even if the credit is approved or not. I have a poor credit rating to be honest, still paying for it. Been turned down for most high street banks credit cards, being self employed as a sole trader also dosn't help. Apply for a Vanquis card, they are owned by the Provident the door step lenders, you get a small credit limit at first but if you tow the line with them they do up it to a maximum of £1000 not much compared to major credit cards but it will improve your credit rating if you use it and pay on time. Quote Link to comment Share on other sites More sharing options...
AVB Posted August 29, 2011 Report Share Posted August 29, 2011 Not all companies use the same process for Credit Scoring. You rating from agencies such as Experion play an important role but it's not the only thing. Good credit history Being on the electoral role consistently with tenure at any one address for more than two years Employment history with tenure of greater than two years Not having applied for new credit facilities frequently in the recent past all work in your favour. Out of interest get a credit report from Experion. It's about a fiver I think. It makes good reading - every loan/credit card you hold, with facility and outstanding and the payment history for the past two years by month. Previous adresses (mine went back 30+ years) and people living there etc. Scarily accurate in my case. Quote Link to comment Share on other sites More sharing options...
Boromir Posted August 30, 2011 Author Report Share Posted August 30, 2011 Not all companies use the same process for Credit Scoring. You rating from agencies such as Experion play an important role but it's not the only thing. Good credit history Being on the electoral role consistently with tenure at any one address for more than two years Employment history with tenure of greater than two years Not having applied for new credit facilities frequently in the recent past all work in your favour. Out of interest get a credit report from Experion. It's about a fiver I think. It makes good reading - every loan/credit card you hold, with facility and outstanding and the payment history for the past two years by month. Previous adresses (mine went back 30+ years) and people living there etc. Scarily accurate in my case. Moved into my Flat 4 months ago and only put the Electoral vote application in just a week before I applied for the credit cards. Been in my job for 3 years and no sign of being made redundant or anything YET. Would going into my local bank and speak to someone give me a better chance? Or phoning? Quote Link to comment Share on other sites More sharing options...
tigger Posted August 30, 2011 Report Share Posted August 30, 2011 (edited) I was told one of the best and quickest ways to increase your credit score was payday loans and the like i no they are high interest but if you pay them the following month they are really good at getting your score higher Edited August 30, 2011 by tigger Quote Link to comment Share on other sites More sharing options...
kyska Posted August 31, 2011 Report Share Posted August 31, 2011 This credit score business really winds me up... I've never missed a payment in my life, rent, gas, electric, water, council tax, virgin, phones, broadband THE LOT. I've had 2 loans which were both paid off early, again never missed a payment. But because I've never owned a credit card, I'm classed as a high risk lender and have to pay high interest rates!!! Yet a friend of mine who has several credit cards, has missed payments in the past, has just got a loan on 6.9% rate!! RUBBISH!! I'm the same, I owe nothing, I have no mortgage, no rental agreement, no credit cards etc, when i applied for a loan for a new car I was offered the highest level of interest...it was 12 odd percent!!! I don't see why I should be cornered into creating debt so I can borrow if I need to, I just hope I have enough put away for my kids university fees, as it appears I won't be able to borrow unless I borrow against my property. Quote Link to comment Share on other sites More sharing options...
al4x Posted August 31, 2011 Report Share Posted August 31, 2011 Moved into my Flat 4 months ago and only put the Electoral vote application in just a week before I applied for the credit cards. Been in my job for 3 years and no sign of being made redundant or anything YET. Would going into my local bank and speak to someone give me a better chance? Or phoning? get your report before applying to anyone else, lots of refused applications aren't good. You need to see what black marks are against you before doing anything else. Then if they are unjustified you have to write to the people that left them against you and work to get them removed. Then try your own bank to see if you can have a low limit credit card. Use it day to day and pay off the balance in full monthly and you will help create a decent score. As for payday loans they are purely for mugs and the most desperate in society so I fail to see why using them would look good to a lender. Quote Link to comment Share on other sites More sharing options...
AVB Posted August 31, 2011 Report Share Posted August 31, 2011 Moved into my Flat 4 months ago and only put the Electoral vote application in just a week before I applied for the credit cards. Been in my job for 3 years and no sign of being made redundant or anything YET. Would going into my local bank and speak to someone give me a better chance? Or phoning? There appears to be no rush as you have up to three years to build to build up your rating (according to your first post). No harm in going into your bank and explaining the situation and taking their advice on what to do. They may well give you a credit card. If they do then make sure that you pay off the amount every month and don't miss any payments. Also spend the time saving as much as you an to build up a healthy deposit. That will also work in your favour. Things will probably look a lot rosier in 2-3 years rather than now. That is unless of course the world economy falls off of a cliff! Quote Link to comment Share on other sites More sharing options...
AVB Posted August 31, 2011 Report Share Posted August 31, 2011 I'm the same, I owe nothing, I have no mortgage, no rental agreement, no credit cards etc, when i applied for a loan for a new car I was offered the highest level of interest...it was 12 odd percent!!! I don't see why I should be cornered into creating debt so I can borrow if I need to, I just hope I have enough put away for my kids university fees, as it appears I won't be able to borrow unless I borrow against my property. I know it seems illogical but think about from the lenders perspective. Person A has a a track record of meeting his repayments commitment and is therefore low risk. Person B has a bad record and is therefore a high risk. You however are neither. No track record therefore the lender has to hedge that risk by higher interest. Person B probably wouldn't have got a loan from most lenders. Quote Link to comment Share on other sites More sharing options...
kyska Posted August 31, 2011 Report Share Posted August 31, 2011 I know it seems illogical but think about from the lenders perspective. Person A has a a track record of meeting his repayments commitment and is therefore low risk. Person B has a bad record and is therefore a high risk. You however are neither. No track record therefore the lender has to hedge that risk by higher interest. Person B probably wouldn't have got a loan from most lenders. Oh I understand the thinking behind, and it is logical, its a little frustrating thats all. I suppose its a bit of backlash rebellion about the banking crisis, that I have to borrow, to be able to borrow. Quote Link to comment Share on other sites More sharing options...
al4x Posted August 31, 2011 Report Share Posted August 31, 2011 best reasoning behind a credit card Kyska is added protection when buying online or from having a card cloned. If you pay it in full monthly it builds a credit history costs you nothing and you gain the safety aspect from fraud. Quote Link to comment Share on other sites More sharing options...
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