What is the quickest way to build up my (bad) credit rating ahead of applying for a mortgage?
SimplyFinance Answers is a great place to start your research, but it is not a substitute for personalised, professional
advice. Please review our Terms of Use or Sign Up to ask a question or comment on an existing question. If you would
like to speak to an expert directly, use our Adviser Search to find an adviser in your area and contact them directly through SimplyFinance.
poshjosh
1 year ago
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
Quicte simply, pay off your debts asap. I would advise going to http://www.experian.co.uk/ and checking out your credit rating prior to applying for a mortgage. There is a link to get a report for £2
report abuse
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
It depends how 'bad' your bad credit is. If you have any unsatisfied county court judgements (CCJs) then the first thing is to pay them off as soon as you can - the credit rebuilding clock will start ticking from that point. It is also essential not to have any more credit hiccups from now on - so make sure that all bills and debts are paid in full and in time. Pay everything by direct debit, too, and if you move home double check that no bills are sent to your previous home - those bills may then fail to be paid (mobile phone bills are terrible for this). Incidentally, keeping some modest debts going is a good thing, as long as they are being serviced properly (ie paid on time), so do not rush into paying everything off.These actions, over time, will help you overcome the bad credit, though be prepared to wait for a year or even more for all this to work. Oddly, the other thing you can do is to keep a credit card or two, plus a bank loan going - this shows that you are a creditworthy individual!
Good luck, and be patient.
report abuse
Good luck, and be patient.
Expert Financial Adviser Answer
John Stirling
answered 1 year ago
If you have debts which have defaulted then pay them off. On the other hand if your bad credit score is late payments on credit cards or exceeding an overdraft, then get back within limits, show steady reductions in balances, and pay on time.
If you want to know what is on your credit report then the £2 link mentioned by Paul is just the ticket, on the other hand getting your 'score' is a bit more expensive, and you probably need all 3 of the main agencies - there are a few subscription services for regular access which might be worth considering - cost will be around £10 pm which is quite expensive, but might be worth it if you are planning on buying a property, since if your credit score is repairable within the timescale you have, then doing so will save a lot lot more than the cost.
report abuse
If you want to know what is on your credit report then the £2 link mentioned by Paul is just the ticket, on the other hand getting your 'score' is a bit more expensive, and you probably need all 3 of the main agencies - there are a few subscription services for regular access which might be worth considering - cost will be around £10 pm which is quite expensive, but might be worth it if you are planning on buying a property, since if your credit score is repairable within the timescale you have, then doing so will save a lot lot more than the cost.
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
Firstly:
there's no need to pay for access to your file. go to www.creditexpert.co.uk this is run by experian and they will give all first time users 30 days free access to their credit file. You have to register a card with them as part of the sign-up process to pay the £6.99 monthly fee which only applies after 30 days.
you can check your file, save a copy to your pc, then ring them up before 30 days and ask them to cancel - but you must ring them an email is no good.
equally, dont bother paying to see your "score" as all lenders use different score cards and you could say to a prospective lender that "i scored 1000 which is good etc" they will answer (to paraphrase) "so what".
you need to look at the results of your file check, its all traffic lighted. all greens is good, any yellows are cause for concern more than 2-3 in the last 12 months and you will be stumped. and red will indicate a default and thats the worst possible.
this exercise might uncover errors on your file and credit expert will help to correct them if you can evidence what's wrong.
once you have done all this. if its "bad" as you say. consider taking out one of the expensive credit cards like capital one or vanquis and use this a couple of times per month for small items ie £10-£20 here and there and ensure you pay off in full. this will help you to build a positive history and you will probably find they will only offer a small credit limit anyway.
used carefully this method can help to set aside some negative aspects but prompt action with credit related matters is always essential.
hope this helps
report abuse
there's no need to pay for access to your file. go to www.creditexpert.co.uk this is run by experian and they will give all first time users 30 days free access to their credit file. You have to register a card with them as part of the sign-up process to pay the £6.99 monthly fee which only applies after 30 days.
you can check your file, save a copy to your pc, then ring them up before 30 days and ask them to cancel - but you must ring them an email is no good.
equally, dont bother paying to see your "score" as all lenders use different score cards and you could say to a prospective lender that "i scored 1000 which is good etc" they will answer (to paraphrase) "so what".
you need to look at the results of your file check, its all traffic lighted. all greens is good, any yellows are cause for concern more than 2-3 in the last 12 months and you will be stumped. and red will indicate a default and thats the worst possible.
this exercise might uncover errors on your file and credit expert will help to correct them if you can evidence what's wrong.
once you have done all this. if its "bad" as you say. consider taking out one of the expensive credit cards like capital one or vanquis and use this a couple of times per month for small items ie £10-£20 here and there and ensure you pay off in full. this will help you to build a positive history and you will probably find they will only offer a small credit limit anyway.
used carefully this method can help to set aside some negative aspects but prompt action with credit related matters is always essential.
hope this helps
