how to go about re-building a credit score?

[Einskis]

years ago i wasn;t good with credit cards. I had no control, I had multiple cards that I ran up to the limits. I was stupid and I know that. I donot want anyone in here telling me that i was a muppet, this is to get some advice to repair things.

I'm much better now, i have recently paid off my mortgage and I have cleared all my debts.

My credit score isnt good. It shows as 510 out of 710 on creditkarma. it says "Your credit score needs work.Let’s get it back on track."

It is time to repair that but I donot really know how to do it. I think a good way would be to try and get a credit card and use it just for [say] amazon, making sure I put aside the money that i would spend on amazon and then pay it off in full. Over time that should repair my raiting.

the problem is going to be finding someone who will actually issue me a card.

Is that the only way to repair my credit rating? Who is likely to issue me a card, does anyone know?

 

[SPG]

Money saving expert.

Aqua card or something, take a out a subscription on the card, 9.99 a month or something, set up a standing order to pay off the 9.99 each month from your bank account then cut up the card to stop or lack of financial awareness getting the better of you and just let it do its thing for 6 months to a year.

 

[Semple]

years ago i wasn;t good with credit cards. I had no control, I had multiple cards that I ran up to the limits. I was stupid and I know that. I donot want anyone in here telling me that i was a muppet, this is to get some advice to repair things.

I'm much better now, i have recently paid off my mortgage and I have cleared all my debts.

My credit score isnt good. It shows as 510 out of 710 on creditkarma. it says "Your credit score needs work.Let’s get it back on track."

It is time to repair that but I donot really know how to do it. I think a good way would be to try and get a credit card and use it just for [say] amazon, making sure I put aside the money that i would spend on amazon and then pay it off in full. Over time that should repair my raiting.

the problem is going to be finding someone who will actually issue me a card.

Is that the only way to repair my credit rating? Who is likely to issue me a card, does anyone know?

First bit of advice is to take your credit "score" with a pinch of salt, as they're purely just a score. The fact that you have credit history - ergo your mortgage demonstrates that you can repay your debts.

Your score might also be lower as you no longer have any debt, i can't remember the specifics but lenders aren't too keen when you have a credit line available but aren't using it.

But you've got the general gist of it, get a card and then pay the balance off in full each month will help to build a score. Also ensure you're registered on the electoral roll as i recall that being a big dent in scores if you're not on the register.

 

[jsmoke]

There should be suggestions on those credit score sites, what about an Amex card, the BA one has no annual fee and you can collect points.

 

[Ahleckz]

Moneysavingexpert has a free service with Experia where they give you a full breakdown of how your score is calculated, gives you tips on how to raise it, and will give you a breakdown of what cards you can get without doing a credit check.

Loads of good info on there, definitely the place to start.

 

[dLockers]

As a (few) post(s) above. Don't read too much into the score number itself.

Step 1 is to fix any admin - make sure all direct debits are configured correctly and in your name.
Step 2 is get an Aqua/Vanquis card
Step 3 is to use them religiously for pretty much everything, but make sure you clear the full balance.
Step 4 is to keep doing step 3 for a year or so, until you can move on to a Rewards credit card and get paid in vouchers for doing Step 3.

 

[SixTwoSix]

Try not to get caught up with scores, while they can be indicative of good/bad credit, you'll still have places that will decline high scores and places that accept low scores. Each company will have internal validation for giving out credit.

Some good suggestions already, MoneySavingExpert is free and has great suggestions, also sign up for Clearscore and Creditkarma (formerly Noddle), they are also free services. I've had soft/hard searches that have appeared on 1 or 2 of these that's don't appear on the other(s).

They will also let you know based on your profile which cards/loans you're most likely to be approved for.

 

[bimbleuk]

As above it's a good credit history rather than a specific score that's more important. So work on that as suggested. Though a relative change to that score is a good way to catch things that you might not be aware of.

One benefit I find of having a credit "score" account is that my provider has collated all my debts and payments history in one easy location for free so thanks for that!

 

[Einskis]

i know the score itself isnt important, it's the fact that its low, probably means I wouldn;t get credit if I applied fo it.

Moneysavingexpert has a free service with Experia where they give you a full breakdown of how your score is calculated, gives you tips on how to raise it, and will give you a breakdown of what cards you can get without doing a credit check.

i've signed up for this thanks.

it does look as though what I said to do is probably the best thing. Get a card of some kind [if I can get one] and use it.

 

[dLockers]

i know the score itself isnt important, it's the fact that its low, probably means I wouldn;t get credit if I applied fo it.


i've signed up for this thanks.

it does look as though what I said to do is probably the best thing. Get a card of some kind [if I can get one] and use it.

Yes, Aqua or Vanquis as stated above. MSE won't tell you anything different.

 

[SixTwoSix]

You might be eligible for a Capital One card too, they were the only company who'd offer me one after my bankruptcy, Vanquis said no at the time.

Any one of the services we've mentioned will tell you your %age changes of a card if you fill in your details completely honestly on signup.

From personal experience, i've not been refused for any that have 70% chance or higher but YMMV.

 

[SpeedFreak]

A credit score only really matters if you need credit. Assuming you are not taking any loans or new mortgages out in the next few years, get any credit card, put a few costs on it each month e.g. petrol, and then just pay it in full every month. That should ensure that you are only using a small percentage of your available credit. Also make sure you are on the electoral register at your address.

Other than that, it will just take some time.

 

[swillsy]

Yep not sure what the problem is unless you plan on borrowing a ton of cash again. If it's another mortgage or Personal loan then most of this is done on affordability at the moment anyway - can you afford the extra payments based on spending over X time.

 

[!bluetonic!]

Credit scores vary between credit agencies.

As already said, it's at that point in time when you apply for something you are judged.

If a loan company advertises a loan rate at 6.9%, they only have to allow 51% of applicates to get that rate. Even someone that has a good score could end up with a high rate 'just because'.

When you apply for credit you need to be honest.

Things that go in your favour.
Stability in things such as your home address, job, a bank account, being on the electoral register, even having a home telephone number as this shows commitment to your another utility provider and a permenant home address.
If you apply for a lot of credit in a small space of time, this can go against you.

And as already said, you have to get small bits of credit here and there and show you can pay it off.

Join 'Money Saving Expert' or read the forums there. There is a massive amount of good information. If you join their credit club, you can slowly work your way into 'good' credit.

 

[Einskis]

I donot plan on trying to get lots of credit, its just that very occasionally I've needed a card

 

[Jimbo1010]

Agree re moneysavingexpert.com site, both forums and the MSE Credit Club which gives you a monthly credit score/report - found the latter really useful.

 

[Pawnless Endgame]

I used the MSE Credit Club from early 2018 until early 2021. None of my circumstances changed, but all of a sudden, my details were no longer correct and thus wouldn't issue me with a report any more. Also, they didn't disclose what detail was incorrect. Before I sacked them off, my credit score was constantly at 999 out of 999.

Next up, I tried Clearscore and my details are apparently correct there. My score is well short there though, only at 471 out of 700.

 

[Einskis]

MSE Credit Club

the only cards it says i am likely to get are the ones that are listed as being for those with bad credit.

but it tells me what i need to know. Thank you to all replies.

 

[dLockers]

Aqua used to be well juicy as it had cashback. Used to make a fortune but had to clear it every 10 days or so due to tiny limits.

 

[BUDFORCE]

I work in mortgages and have done for many years, obviously pretty good understanding of FCA regulation, and the various other regulatory bodies.

I cannot believe the likes of Equifax and Experian are allowed to market these "credit scores" the way they do, completely miss leading. They are selling snake oil in my opinion.