Improving my credit score?

[MFeely88]

Does anybody know if there's a way to improve a credit score? Apparently I have bad credit, but I honestly don't know how. I've never missed a payment with anyone, I even paid off my loan I had 2 years earlier than it was due. Now I want to borrow some money to pay off everything that I have on catalogues etc. and I've been declined because of credit scoring. So basically, is there a proven way to improve a credit score?

[sillygirl1]

Not in this climate (IMHO), I think unless you have a perfect score nobody is going to lend anything, and then they want tons of information and documentation to back it up.

 

Sorry, but the probability of getting a better score now is practically nil - in fact the only people who will have perfect scores won't want credit so that screws the system...

 

Experian are already suffering as people aren't paying for searches anymore.

[MFeely88]

Ah, well that's good to hear hahaha. Thanks for your reply, I guess I'll have to go another way about sorting things out.

[jonni2bad]

Sometimes it is the case that people with very little history can be scored low - so even if what small amount of known credit you have has been properly dealt with, it may be the case that you could still be refused further credit.

 

There are some things that can help, but they are not quick fixes by any means.

 

Having a credit card and ensuring that payments are made in full and on time is a cheap way to build up a good history - if you pay in full every month then you'll not pay anything to use the card...

 

Agreements like mobile phone contracts and even insurance policies etc will all help someone build a history - but as you can imagine, they don't do so overnight.

[master woody]

its true that right now there will be no way you can get credit until the the credit crunch is over...but you could use the nexttwo years to improve your score

 

1 get you your credit file and see what's wrong, defuals fall off after 6 years, mke sure all the information is correct

2 make sure you on the electoral roll

3. you could get a sub prime credit card from capital one, it has a 29% APR so you must clear the blance every month, this would create a good histroy

 

hope this helps

[sillygirl1]

DONT get a Capital One Card, the INITIAL APR is 29% for purchases and for cash withdrawals it goes up to 53%...

 

Also you will be bombarded with phone calls and letters telling you that you haven't paid the account in time and charges will quickly rack up.

 

If you really need a card to do some online transactions get one of those that you load up with cash every so often - much better to pay a flat monthly fee than be stuck with a card that gives you grief in the long term.

 

In fact don't bother with getting any credit card at the moment - they are all racking up interest rates each month to cover bad debt, and if you pay your card off each month they may decided to 'withdraw' the card as you are not 'using it properly' - ie not letting them rack up stupid charges.

[master woody]

all that true but pre paid cards dont report to the CRA thus not improving your score per the OP question.

 

Crap one's ok IF you pay in full every month...then you pay no intrest at all

Edited January 12, 2009 by master woody
spelling

[jonni2bad]

I have one... Needs must!

[rich2568]

Does anybody know if there's a way to improve a credit score? Apparently I have bad credit, but I honestly don't know how. I've never missed a payment with anyone, I even paid off my loan I had 2 years earlier than it was due. Now I want to borrow some money to pay off everything that I have on catalogues etc. and I've been declined because of credit scoring. So basically, is there a proven way to improve a credit score?

 

Hi

 

Remember- a credit score is only applicable to that lender. When one declines you- another may accept you.

 

Get your credit report from all 3 agencies (Experian, Equifax & Callcredit) and then analyse them. Remember to declare ALL 6 year address history to the CRA`s when applying for your report.

 

What is critical is no missed payments over the last 12 months on any active account.

 

Also any settled (closed) account must have a status history ( how the account was run) of `0` when closed ( check the report).

 

Also ensure you are registered to vote on The Electoral Register for a minimum of 12 months- check with your local Council?!!

 

Aswell as this , ensure there are no defaults, CCJ`s, IVA`s/ Trust Deeds (In Scotland) or Bankruptcy information (Including Sequestration in Scotland).

 

Then also make sure all linked addresses are actually yours. Now what I mean there is that you DONT have to live there- it could be a connection to the property either through correspondence or your Financial Associate. Remeber the address doesn`t relate to another individual of the same name or an address you have never resided at!!

 

And the outstanding balances on all of your unsecured accounts (Excluding Mortgages) have an impact on your score- the higher the balances, the lower the score- pay them off if you can and reduce your credit limits if you aren`t using it - or close the account for good!!

 

Remember, also your Financial Associates all have a bearing on your credit score- so make sure their report is squeaky clean. If you haven`t seen their data- chances are it may not be as good as yours!!

 

Ans finally, ensure you haven`t applied for more than 4 items of credit over the last 12 months.

 

After all that- hey presto- your credit score is a lot lot better!!

Edited January 12, 2009 by rich2568