OT: How do you improve your credit rating?

[eastlondonseagull]

I know this isn't Debtors Anonymous, but I'm f***ed financially (again).

Delays in salary payments and general financial mismanagement by me meant that I incurred more than £300 in penalty charges over the last ten days for bounced cheques and direct debits (including two to the Albion). I'm now fine again cos I've been paid, but the missed-payments have shot my credit rating to pieces.

Anyone know the best way to redress my credit rating? Or is it simply a case of sitting it out? If so, how long does it take to get it back up to scratch?

Yours pleadingly

 

[Chicken Run]

Debt cosolidation but it's expensive or bankrupt yourself

 

[Sonic]

Lots of advice on this website. Probably a better place to pose this question.

moneysavingexpert.com

 

[Biscuit]

Correct blatant mistakes. Your credit score is only as good as what shows up in your credit report. Review your reports from all three credit bureaus for accuracy once a year as well as several months before applying for a loan. Changing a mistake on your report - such as a payment that is wrongly labeled as late -- can take 30 days to three months, sometimes longer.

Pay your bills on time. This is always a good practice, and it's especially critical that you make prompt payments close to the time you need a loan. That's because a late or missed payment in the last few months is likely to lower your score much more than an isolated late payment five years ago.

Reduce your credit card balances. A heavily weighted factor in your FICO score is how much money you owe on your credit cards relative to your total credit limit. Generally, it's good to keep your balances at or below 25 percent of your credit card limit, said Jeanne Kelly, founder of The Kelly Group in Brookfield, Conn., which helps clients improve their credit scores.


or this site is helpfull: http://www.bankrate.com/brm/news/credit-scoring/20040128a1.asp

Good luck.

 

[eastlondonseagull]

That's the irony. My Egg card credit limit kept getting eeked up (by them) until it topped £7000. I got a £15,000 bank loan and consolidated all my debts, cut-up one credit card, then reduced Egg limit to £500. All very sensible, I thought.

Trouble is, I'm back to £6,000 OD and went over it to £6100 last week (hence all the missed payments). When i tried to up Egg Card to 1200, they refused the higher limit because of bad credit.

Tried to get another bank loan today to consolidate once again, but it was declined because of bad credit. It's so annoying how a mere £100 over my OD limit f***ed me up so much. After all the bank's charges, I was £400 over my OD limit. C***s.

 

[Biscuit]

How did it go up to £6 grand if u had a £500 limit?

 

[Wardy]

That's the irony. My Egg card credit limit kept getting eeked up (by them) until it topped £7000. I got a £15,000 bank loan and consolidated all my debts, cut-up one credit card, then reduced Egg limit to £500. All very sensible, I thought.

Trouble is, I'm back to £6,000 OD and went over it to £6100 last week (hence all the missed payments). When i tried to up Egg Card to 1200, they refused the higher limit because of bad credit.

Tried to get another bank loan today to consolidate once again, but it was declined because of bad credit. It's so annoying how a mere £100 over my OD limit f***ed me up so much. After all the bank's charges, I was £400 over my OD limit. C***s.

And i worry about my £600 overdraft

 

[eastlondonseagull]

How did it go up to £6 grand if u had a £500 limit?

Sorry, it was my overdraft that slipped up to £6000 after I'd consolidated it back to zero.

My credit card limit stayed at £500, but I then asked them to up it to £1000 to cover all the madness. They accepted, but then refused the extra £200.

 

[chez]

Tim, there is in fact no such thing as a credit rating or a blacklist for that matter. The website stated above (www.moneysavingexpert.com) is an excellent site and will tell you everthing you need to know.

 

[fatboy]

Mine must be f***ed.

I have two £2k overdrafts, about £1k on credit card, I've had lots of bounced payments and haven't always paid bills on time, plus about £12k student loan.

Surely many students will be the same situation?

Now I am working the debts will be gone in no time.

How long will my rating be f***ed for?

 

[Beach Hut]

And i worry about my £600 overdraft

Ditto, I worry about £1,200 owed on an interest free card

 

[Yoda]

I'm already f***ed. Have all my credit cards on reduced payments.

Have an Egg card too but have not heard from them for about 6+ months and haven't paid for about the same time. No letters or calls.

In total I owe £8000 on cards and £8000 on a bank loan with another grand on an O/D.

Edit Mis calculated. Only about £7000 on the cards.

 

[Race]

I'm already f***ed. Have all my credit cards on reduced payments.

Have an Egg card too but have not heard from them for about 6+ months and haven't paid for about the same time. No letters or calls.

In total I owe £8000 on cards and £8000 on a bank loan with another grand on an O/D.

Do you have anything to show for it or is that just been spent on day to day living etc?

 

[Yorkie]

Blimey I wouldn't be able to sleep at night

 

[Beach Hut]

Blimey I wouldn't be able to sleep at night

Think I would struggle as well.

 

[Set of Tracksuits]

I know this isn't Debtors Anonymous, but I'm f***ed financially (again).

Delays in salary payments and general financial mismanagement by me meant that I incurred more than £300 in penalty charges over the last ten days for bounced cheques and direct debits (including two to the Albion). I'm now fine again cos I've been paid, but the missed-payments have shot my credit rating to pieces.

Anyone know the best way to redress my credit rating? Or is it simply a case of sitting it out? If so, how long does it take to get it back up to scratch?

Yours pleadingly

As Biscuit mentioned in his clearly-copied-and-pasted reply, you can add explanatory notes to your credit file to help explain any one-off f***-ups that you make due to circumstances beyond your control. If you get in touch with Experian and Equifax (the two main credit agencies that companies use) and request a copy of your credit file, they will sent it out together with instructions for you to make a "Notice of Correction" to your file.

When I got mine, I couldn't bring myself to read it for about 3 weeks, but it's better to know exactly where you stand so that you can deal with it, rather than just hoping it will go away.

Couple of tips though:

1. Don't keep applying for credit when you have a fair idea you won't get it. This will only make your credit rating worse.
2. Any direct debits that you currently have, take care to keep them up to date as a consistent payment of a DD will help your credit score.

Most important, don't panic, and don't ignore letters etc. A lot of firms are very receptive if you phone them to explain the situation and will agree to reduced payments or other arrangements as an alternative to serving default notices etc against you.

 

[withdeanwombat]

Someone will know that very famous Dickensian quote about income and expenditure.

But basically the advice is don't spend what you don't have,and if you already have,stop spending NOW and get to the CAB for advice.

........Do not declare bankruptcy on the grounds that a) it marks your card ,and b) its stupid.

 

[Yoda]

Do you have anything to show for it or is that just been spent on day to day living etc?

I did use quite a bit of it to go to the Olympics last year.

 

[eastlondonseagull]

I'm already f***ed. Have all my credit cards on reduced payments.

Have an Egg card too but have not heard from them for about 6+ months and haven't paid for about the same time. No letters or calls.

In total I owe £8000 on cards and £8000 on a bank loan with another grand on an O/D.

Fairplay Yoda, it's a headache innit? I owe about £22K in total. Plus £117K on the mortgage.

Thanks for all your advice everyone.