Credit rating!

[Bookriddle]

Hey i have a question about credit rating!

The last few years me and my wife have struggled financially, but this year, due to job loss because of covid, i am having to give up my house(i rent)

Thankfully my parents are letting me my wife and dd move into there home, to help us out! They are only gonna charge us £250 rent, so this will give us the opportunity to pay all of our debts/credit cards and overdrafts off!

Our credit rating is shot to bits!

My question, what is some good ways to build our credit rating back up?

Everything you need to know here.

How long it will take to repair your credit file will depend on whether you have missed payments. If you haven't missed any payments, your credit rating will still be good, there's nothing to repair.

However, if you have missed payments, it could take up to 6 years for your files to be in a good state again, but the older any missed payments get, the better it becomes.

I'm really sorry to hear you're having to give up your home. In my experience, which may not be the same as other people's, I found that speaking to someone who I bank with was a good start. I personally consolidated my debts and found a manageable way to pay them off. It wasn't easy and it took time but it made things easier not finding that I was eating into how much I could pay back with interest payments from the different bits (credit cards, overdrafts and loans).

There are some good interest rates out there and it might be worth going onto one of the credit rating websites in the first instance to see where your current credit rating is. They also tend to have some handy tips on how to improve it. The websites also have potential loans and zero percent credit card options which they could recommend to transfer your debt to so you can pay it off in an affordable way.

Simple things like voter registration and not missing minimum payments help. Also, in the most basic of terms, sitting down with your OH and working out the family incoming money and outgoings and seeing where you can shave off money (presumably no utility bills or rent so money saved there). Then you can see how much you can realistically pay off per month without putting yourself out.

I know some of the stuff is basic and I hope it's not telling you anything you already know. I know the stress it can bring worrying about it all mounting up on you and wouldn't wish that on anyone. I hope this helps and you start to feel better about your finances very soon.