best way to build a credit score???

Discussion in 'Finance, Property, Law' started by Chris_2oo6, Mar 23, 2008.

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  1. whats the best way for someone whos's had debt trouble in the past??

    i was about 3 grand in debt a few years back.. cleared it all off in 1 payment in 2006

    at the minute ive got 2 mobile phones, sky, virgin cable, t mobile usb internet... all in my name and being paid on time for the past 2 years or so

    yet my score doesent seem to be getting anywhere.. im after a 2000 loan to buy a car, but keep getting knocked back :?

    i have about 750 a month disposable income, after bills etc are paid

    and its frustrating knowing full well i could have 2k paid off in just over a year and easily afford it! :x
     
  2. because im usless at saving

    if i save.. i wouldnt be able to go anywhere or do anything

    and im on leave for another 4 weeks yet... it'd drive me insane sitting in doing nothing
     
  3. Remember that a credit score is a measure of the way that you have handled credit in the past and your ability to handle future debt.

    Best bet is to get a credit card, use it, and always repay on time leaving a little to accumulate. Then pay that off in full the next month. Do that for 6 months and you will build up a respectable score. Also, a lot of people find that lying about income (as long as you're consistent and credible) doesn't harm.

    I've known people pay off huge sums on the credit cards only to find they have a poor credit rating at the end of the day. Sometimes it's best to be seen to be slightly in debt, but always managing it well.

    I'd save up the money and pay cash

    edit: You answered your own question there!
     
  4. meridian

    meridian LE Good Egg (charities)

  5. If you have been refused on three loans within a year you will struggle to be accepted for a fourth. Each application lowers your credit score.
     
  6. msr

    msr LE

    So, you've had problems with money in the past, you admit you can't stick to a budget and you are asking for loan?

    msr
     
  7. two phones.....Sky....AND cable?

    To quote Sean Connery in the film "The Rock" -

    "Personally I think youre a fu.cking idiot"
     
  8. ViroBono

    ViroBono LE Moderator

    Credit Reference Agencies such as Experian and Equifax don't compile credit scores; individual lenders use their own criteria. CRAs provide information on current and past credit.

    I suspect that if Chris2006 was in debt for a while, and didn't clear it until 2006, his CRA files may be showing defaults. A default can be as damaging as a CCJ, even if marked as 'settled'.

    There's not much that can be done; removing defaults is extremely difficult. They stay on file for 6 years.

    However, if you were in debt, and the debts related to loans, credit cards or bank accounts, I suspect that there will be lots of penalty charges that can be reclaimed.
     
  9. Go for a mortgage. It seems all credit scoring goes out the window. If you let the house out, you'll be no worse off.

    Bit extreme to borrow 2k for a motor i know.
     
  10. lol

    sky is for at home

    cable is for on camp

    its dirt cheap and i can afford it so who cares???
     
  11. I would suggest paying for your credit report from a CRA.......Find out what is lowering your credit score....Speak to who is giving the CRA the negative info and see what they suggest.....

    Nearly all of the information passed onto the CRA's is created, handled and received by computers... therefore they are unlikely to look at particular stuations until you highlight it to them.....

    would I offer you advice ...............yes
    Would i lend you a tenner..............no!
     
  12. Chris, I hope that you do not think that I am just a nosey old bugger but I

    would like to offer you some advice. I offer it because I have been where

    you are now. I did nine years in the British Army and when I walked out of

    the gate at Catterick I had about twenty quid in my pocket and within a

    month I was sleeping in haystacks and bus shelters. Every cent I was

    paid as a soldier I spent. Easy come easy go, tomorrow will take care

    of itself. But in civvy street it doesn't. Whatever else you do Chris, learn

    to save a regular part of your income. Learn it as though your life

    depends upon, because for happy go lucky guys like you and I, it just

    might. Boring I know but believe me, you will have a far more contented

    life if you can get on top of the savings bit. Good luck. :D
     
  13. if you've been clear for 6 months then summit else seems up that you don't know bout!!

    i got deep in shite 8 months ago. 1 bumper payment and boom i'm now swimming. i paid 6.50 to CreditExpert and they show your score outta 1000. 1000 being bad... i was 990 8 months ago now 350!! Just don't spend unless it's paying someone back worked for me..

    £400 credit card that had one month interest run up and paid off 4 times!! EASY!!!
     
  14. give it 3-6 months between applications for credit and it is a complicated process. Maybe its because you have so much going out that affects you and certainly any defaults will be showing up.If you have £750 pm spare you can easily save enough for a car or maybe get a cheaper one in less time