Tips to improve credit rating please?!

[moofolk]

Hi I'm looking for advice: the title sums it up really!

I'm actively trying to improve my credit rating. I had some dents when I was younger, but over the past 15 years or so my credit rating has been awful, I think partly because of never having credit. No loans, no credit card, never pay in instalments if I can post in one go, avoided direct debits in favour of standing orders, direct payments etc.

I've gone from awful to 'good' by arranging some debt repayments and making some purchases using PayPal credit.

I'm earning ok at the moment but was considering getting an overdraft, just to have and not use as I'd heard this is good for credit rating but worried it will have the opposite effect!!

Are there any other tips for making me look appealing to future mortgage lenders?

Have a look on Money Saving Expert website, on their forum there is a whole topic on credit ratings which has lots of useful stuff.

For mortgage applications, lenders like to see a good payment history - regular payments if you do have credit as this shows that you can manage your money. If you don't have credit (e.g. finance payments for a car or similar) and like to buy with cash then this weirdly goes against you, but it's because they can't see you 'managing your money'.

I followed some advice (from MSE and friends who'd done similar) and got a credit card which I use but pay off straight away. It really does improve your score, but make sure you don't use more than half of your credit limit (this will cause your score to go down) and pay off in the month if you can.

Get an actual credit card maybe, buy something on it -even if it’s just one weekly shop-but put that money aside then pay the credit card bill off in full.

X post

Yep credit card seems the way to go.

So annoying that living within your means brings bad credit score!!

Simply get a credit card. Go on the comparison site to check your eligibility first. Apply to the one you have a high probability of being accepted. Use the cards and pay off any balances every month to not incur interest fees. A year later your score should go up. You can also monitor score through Experian or clear score for free.

I'd recommend a credit card. One with a reward maybe like Amazon or American Express so you are benefiting from using it. Use it for regular spending and pay in full by DD at the end of the month.

Are you on the electoral roll? If not, that’s a good one. As others have said, a credit card you make purchases on and pay off each month. You can get a points one so it’s some benefit to you. An small overdraft that you don’t use.