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Repairing my credit rating

(6 Posts)
melibu84 Tue 27-Sep-16 13:16:36

Long story short, my credit rating took a battering between 2012 - 2014 due to my ineptitude and ability to hide my head in the sand!

When I first totted up the numbers at the end of 2014, I had £9k worth of debt, including a CCJ.

Fast forward to now, and I have managed to get it down to £6k, and the CCJ is now paid off. I even managed to save money in the run up to going on maternity leave. My relationship with money has completely changed, and I can see financial security in the future. I want to improve my credit rating so that my partner and I can buy a house in 2018 / 2019 when the CCJ falls off my report. He has a deposit, and we both earn enough, so the only thing standing in our way is my dire credit history!

I have recently been approved for 2 credit cards (interest rates are high but with my rating, i'm surprised i managed to get anything) with small limits of £200 and £500. The £200 I got a few months ago. The £500 I was just approved for. I don't actually need the credit cards, but I want to use them as it looks good to show that you can manage credit. The question is, what do I spend it on?

My sister thinks I should get something I've always wanted, but am too practical to buy ie an apple watch (sorry, I am an apple fan girl; I have been lusting after them from afar ever since they first came out).

I'm thinking of using it for Christmas presents, which seems far less selfish and more practical lol, and means I can spend a little bit extra on everyone. On my own, i usually manage £30 per person, and there are about 10 people. I do love buying gifts!

What do you think I should do? Any suggestions welcome :D

Sorry if I waffled on a bit!

Unlockable Tue 27-Sep-16 13:19:14

Just spend it on ordinary ours ages like petrol and food and make sure you pay it off every month. Save your Apple Watch money for your new house wait will give you a lower LTV and you'll get a better rate and deal in the longer term 😀

ThatIsNachoCheese Tue 27-Sep-16 13:34:34

We did the same and use ours for groceries and petrol and then pay it in full each Month.

melibu84 Tue 27-Sep-16 13:35:53

Very good point about the LTV!

My DP pays for all the food cos he helps his dad with his food shop on Monday, so they do it all together. He never tells me how much it is or lets me give him the money! I don't drive, so I don't usually contribute to the petrol. I do pay for all the household bills, though, except for the rent, so maybe I'll have them go through one of the cards instead, and leave the other for emergencies.

MUjunkie Tue 27-Sep-16 13:40:37

You need to just make small purchases and pay them off at the end of the month! And don't use up to the limit, only about 50% of it. That will help build your rating so you can get one with lower interest, then you can treat yourself!

(Says me that is trying to do the same! I know what I should be doing but lack self control) hmm

buckyou Tue 27-Sep-16 13:47:47

Don't spend on "extra" stuff or you might end up in the same position you were in last time! Just put a bit of your usual spend on each month and then pay it off.

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