Rebuilding a credit rating...

cleanbluesky

cleanbluesky

cleanbluesky

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Joined
2 Nov 2004
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My credit is fine, but I am curious as to how one would rebuild a credit rating...

Suppose a person had been in debt but had since cleared all that debt, yet the bank would still refuse them anything beyong a 'basic' card...
 
I suppose the best way would be to get one of those insanely high interest rate cards that they hand out willy nilly, buy something on it every month and pay it off immediately. A couple of years doing that should get your credit rating on the up again.
 
Scuzi said:
I suppose the best way would be to get one of those insanely high interest rate cards that they hand out willy nilly, buy something on it every month and pay it off immediately. A couple of years doing that should get your credit rating on the up again.
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I THINK that my friend has been turned down for a Capital One... apparently they give cards to anybody but who knows...

Are there any other cards that do similar?
 
i thought you had your bank account etc taken away for 2-3years and everything all debt is written off with a clean credit rating within 5 years.. or am I mistaken?
 
andy@moFo said:
i thought you had your bank account etc taken away for 2-3years and everything all debt is written off with a clean credit rating within 5 years.. or am I mistaken?
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it still shows on your record, but as a settled account for at least 3 years after the settlement (not the bankruptcy ruling which lasts 6 years iirc). Therefore anyone searching on you will still be able to see that you were made bankrupt.

How does bankruptcy affect your credit rating?
Your bankruptcy will be registered with credit reference agencies and remain on your file for a minimum of six years. After this time you may still have to declare your previous history, particularly when applying for a mortgage
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cleanbluesky said:
I THINK that my friend has been turned down for a Capital One... apparently they give cards to anybody but who knows...

Are there any other cards that do similar?
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I got turned down by Capital One, turns out it was because my electoral roll registration was slightly different. I normally added the building name and number, they just had the number.
 
andy@moFo said:
i thought you had your bank account etc taken away for 2-3years and everything all debt is written off with a clean credit rating within 5 years.. or am I mistaken?
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A person will have a clean credit rating in 6 years regardless of bancrupcy or not, as the credit rating only stretches back 6 years
 
cleanbluesky said:
A person will have a clean credit rating in 6 years regardless of bancrupcy or not, as the credit rating only stretches back 6 years
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that's true, but there are things that can be 'added' by the company - i.e. default notices etc. The company is entitled to request that an explanation remains on the credit file after the actual agreement has been settled.
 
really only 6 years??

So that means that all that trouble i had back at uni is now forgotten?
Balifs, £3k ODs £2k CC debts.. etc etc.. (all payed now )

I was young, what can i say :)

i might do one of them online thingys.
 
you think your in the **** when you check with equifax to see why your getting refused anything and everything and they say they dont have any details on you :/

turned out its because i wasnt on the electoral register :o

but yeah silly APR crds are the only way :(
 
The way i did is after a got a CCJ against my name 7 yrs ago was to pick up one of those stupidly high interest rate Capital one credit cards. Started off with a measly £200 credit but after 6 months it went up to £500. They then sent me a gold card with a limit of £1500 and again 6 mths later they upped it to £10k.
So i guess my credit rating was improved by that card, although i never bought anything on it of major value.
2 yrs ago i applied for a loan and got it, paid it off after 2 mths then i applied for another loan and again paid that off within 6 mths.
Now HSBC have given me a credit card with a limit of £20k and also mortgage of £350k should i want it.

Thats basically how i did it, going from having crap credit to now having A+ credit. Although i dont buy much on my cc's as i pay everything by cash or by my switch card...i try to avoid going into debt as it is...ive had the feeling of being in massive debt at one point in my life and i wouldnt want to be there again...its why i say dont get a cc unless you can afford it or are very very wise with your money...they are evil things that can take over your life if you let them:p.
 
Spawn said:
...they are evil things that can take over your life if you let them:p.
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Your not wrong, I'm in that position now. :mad: will take 2 years to pay off my debt monthly :eek: damn credit card companies should be more strict who they give their money too. If they not careful every offer I get through my door I might just take and get a massive huge 200k + and then go backrupt. Damn spam letters and emails :confused: :confused:
 
how does not paying your monthly bills on your store cards and credit cards affect your rating? not to the point of getting a ccj but getting numerous letters and such?

even with a poor credit rating how does mobile phone contracts work - is it much easier to get one?

i have a friend that was stupid in his uni days and is now trying to work out his status - he is too scared to check his rating! - seriously!
 
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