Repairing a Credit Rating

[flushwas]

Hello!

 

I've been in debt for many years to the tune of around £30,000 on credit cards and personal loans.

 

I've recently sold a business and after paying all the tax, I've managed to clear all of my debt.

 

Over the last year I've missed many payments on credit cards and loans. Some of the CC companies have reduced my limits and sky-rocketed the interest rates, and my overdraft facility was removed.

 

I'm never wanting to get into debt again, but I would like to know how best to repair my credit rating, which I'm sure is now in a right mess!! It might sound strange that I want to repair a credit rating when I don't need to borrow anything, but I would like a decent credit rating in case things change in the future - and I know that your credit rating is used for other things than borrowing money.

 

I've had a mortgage for a year (which I only got because it was self-cert) and have never missed or been late on a payment.

 

Any advice would be appreciated.

[flyingdoc]

IMHO the only way to repair a credit rating is to get credit and then manage it effectively.

In my own situation I applied for and got a CAPITOL 1 credit card (dont spit)

I use the card deliberately about 1ce per month and always keep the balance in credit this shows up on my equifax as a credit account being well managed.

 

My credit score now - while still not brilliant - is double what it was when i started.

[flushwas]

Thanks for the quick reply.

 

So rather than just keeping all my credit cards clear, I should actually use them?

 

Is it possible that my rating will naturally 'heal' itself over time if I didn't do that?

[flyingdoc]

I cannot answer that with any degree of certainty - I can only tell you what I did and the result.

 

I do know that clearing credit card balances each month your rating improves.

 

Someone else may be able to answer your question.

 

cheers

 

FD

[postggj]

i can shed some lite on this

 

my credit rating was once the pitts

my credit score was in the 300

the way i improved it was getting a cap 1 card and vanquish card.

i spent 50 quid a month on each and settled each month.

with the help of cag i got all my neg info removed and 18 months later i have a credit score in the 900 which i consider the holy grail.

 

what you need to do is get credit and manage it well.

over the months your score will increase.

 

the down side at the moment is if you have a bad credit record, the finance companies do a credit search on a regular basis and leave no trace on your cra.

 

if they see you are having problems, they will lower your overdraft, credit limit with no explanation

 

even with a bad rating, any body can get credit, so a rating is not that important, but you will pay for it with a higher deposit or apr

 

times the only healer ime afraid.