To ask if you had a bad credit score...

[triedtired]

Name changed.

If you once had a bad credit score, do you now have a good one? If so, how did you improve it and how long did it take?

I am early twenties and moved into my own place 1.5 years ago with DS. I have missed quite a few payments over this time due to financial difficulties and have almost reached my credit limit on my credit card. My credit score is poor, but not terrible. I do pay all things on time now and have always paid most of them on time.

I am really worried I have now ruined my changes of ever getting a mortgage etc. in the future.

I am now not eligible for a credit card or overdraft.

Don't worry. Keep building up your score. Best way is by paying off the bulk of your credit card monthly and not missing any payments. My friend has just got a mortgage in her late 40s after being on a debt management plan and being unable to get credit for a number of years.

Took me about 8 years, started to try to fix things when I was 27 and cleared everything by 35.

Generally things stay on your record for six years, therefore if you make all the payments on all your accounts for the next six years you should gradually see an improvement even if you have not paid off all your debt.

Lenders are more interested in what has happened recently so if you show yourself to be responsible you should start to see improvement in a year or two.

The key is to be consistently responsible - if you paid off a couple of thousand over six months but then immediately racked up the debt again, that would be a red flag.

Lenders want to see
a) No missed or late payments (shows you are managing your debt)
b) Having an account open for several years (shows companies you've borrowed from haven't decided you are a bad risk)
c) A low percentage of your available credit actually being used.

The last point is difficult if you are in a lot of debt now, but the important thing is to consistently pay a little off each month.

When I finally got out of debt my credit rating shot up (to a degree which I felt slightly ridiculous). The reason I think was that I had shown over several years that I could reduce my borrowing to a lower level.

Bad credit means you wouldn't get a mortgage now, but it will not stop you getting one if you can get out of debt first. If you're in your 20s you have plenty of time.

We had a horrible time with credit. Family member used our details and got us in lots of debt. We didn't want to take them to court because its family so we had what we could wiped and paid the rest.
Couldn't even get the rubbish store cards that take bad credit. we just had to wait 4 years, took out 2 phone contracts and kept those up. Then after about 5 years we were eligible for a credit card each. borrowed a little paid it back etc.
Now we have a mortgage and good credit.
it really is a waiting game.
I am sorry you are in this position but save what you can (a bigger deposit helps) and if you can get a contract or Internet and tv in your name that'd be a good start.
Also keep an eye on your score. and don't get disheartened when it goes down for no reason. Ours went down (both mine and my partners) for seemingly no reason. we didn't know why but they went back up again within a few months.
6 years in total we had to wait. that includes saving to pay off the debt.
partner in 800s and I am in 900s.
I think we got an argos card and any small purchase for the house or Xmas went on that and paid off over months. Dont pay it all at once, that cost us a few points for some reason.

Good luck 👍

Yes, around the same age as you.
I started getting everything in order again at that age and got a mortgage aged 30.

I missed a few payments on utilities when I moved house (no correspondence) which has affected my credit score since despite paying off the debt

Martin Lewis website has some good tips/options and there are specific 'credit builder' cards you can take out which you use to but everyday items then ensure you pay back monthly and it really boosts credit

Oh and make sure you are on the electoral register even if only renting