Someone pleaaaaase tell me how to improve my bloody credit rating!

[RavioliOnToast]

When I was younger I defaulted on 2 accounts. The balances have been settled however they're still on file. I was sure that it should only be another year or so before hey dropped off (6 years) but when I've just checked clearscore, one of them was only updated in 2014- that's going to mean it'll be 2020 before it goes :(

I have a next account and a barclaycard. I recently got accepted for an interest free MBNA card so have paid off the next account (waiting for next statement to come through before it can be closed) and have paid most of my Barclay card off (£67 remaining that I'm paying next Friday and closing). So other than paying this MBNA card off before the interest free period is up, how can I improve my credit score? Do I sign some of the bills into my name? Get an overdraft? I have 2 bank accounts open, one is my actual current account (Barclays) , I have a Natwest one open as this is what DDs dad used to pay maintenance into and don't want to close it i case he ever tries to say 'oh well I tried to pay you money but the account was closed'.

Do I close he Barclays current account (it's the one I've held longest) and use the Natwest one as my sole account? I have no idea- please help.

Credit rating really is only a number...if you've been approved for a store card and a couple of CCs it can't be so bad that lenders aren't prepared to have you as a customer. What is it that's concerning you?

One of the websites said my credit rating was 1/5, I do occasionally get turned down for credit and want to open a joint acct with dh but don't want him to be financially linked tonne with my bad rating

I would get help from your local Citizens Advise Bureau.

Agree, some unbiased advise might be best...credit score aside (and as a bank worker for 20+ years) I'd advise keeping finances separate...

Are you on the electoral roll? Have you got all your previous addresses linked on your profile?

Have you had late payments? Have you been paying the minimum on your cards?

How much debt do you have compared to what's available to you? I.e. Limits total £10k, you owe £8k? How much debt do you have compared to your salary?

All of these are factors.

I have 1700 debt and salary is 8500 pt.

I don't think I'm electoral roll yet for my new property, I was however for all previous.

Limit is 1800 as I downsized it from about 7k as I want to get rid of it asap.

credit rating is just a random number
focus on getting your finances properly under control
ignore the paranoia adverts from the agencies

Credit rating isn't entirely accurate but 1/5 is really very poor...anomalies in the scoring system wouldn't account for a 'good' credit score showing as a 1/5.

Basic tips op:

Make sure every payment is made on time.

The higher the average age of accounts is, the better it looks - don't close down a long running account for a new one.

Make sure you're on the electoral role.

Make sure you USE your credit cards. Every month, even if you have a balance owing.

An example of something that seemed to work for me - At the minute, I have £2800 of credit card debt, £3k limit...not great. I pay about £100 off a month to reduce the balance. BUT...the last two months, i've paid a huge chunk of money onto the card, about £1k, on payday. Then i've spent on the credit card for my usual expenses, rather than my debit card, only up to the same amount I usually would. But my credit rating shot up because for 3 weeks of the month, my balance is £750 lower, for 2 weeks about £500 lower etc, iyswim.

It doesn't sound like you have a lot of credit so I wouldn't close the Barclaycard or the Next account, so long as you're careful. What I would do is use them every month, and pay them off in full...it looks positive because it clearly shows you have credit and are able to use it responsibly.

Join the two main credit reference agencies - www.equifax.co.uk and www.experian.co.uk - You can do a 30 day free trial.

Get detailed copies of you credit score and make sure there is nothing on there other than the defaults

Then get in touch with both credit companies - they have advisers who can let you know how to improve your score but main ones are

Make sure you are on the voters roll at current property
Make sure all bank statements, bills etc are registered at the same place
Don't miss any credit payments!
Use credit cards but pay off (in full if possible) at the end of each month

I've already closed my next account the temptation was too much. The cc I can keep though, stick £50 a month on and then clear it.

Have a look on moneysavingexpert website I got a free credit score on there and he has loads of tips about improving credit and how they assess you.

Will have a look at mse now. I've already had my free score from the two other agencies

Sign up to this:

www.moneysavingexpert.com/creditclub

Seems to be very honest and clear.