While perusing the forum, I noticed a few threads about credit reports, so I thought I would interject with my experience.
Disclaimer.
I am not a financial adviser, I am just giving information based on what I have experienced.
This is not a how to guide nor am I persuading you to participate.
If you choose to follow the steps I have taken, results will vary dependent on the country you live in, your economy (availability of credit) and your personal profile.
You take credit at your own risk, not mine
Where it started
Ok, so I have always been paid fairly well, enough to never need credit. I live within my means and until a year ago, I never had anything on credit; apart from a bank account that I have had for many years.
I was booking a holiday just a little over a year ago and I thought it would be a great idea if I got a credit card, just in case I needed one. Given that I am sensible with money, there was no chance I was going to overspend, so I guess, what the heck, I might as well get one.
I applied online for a Capital One credit card given that the rates seemed reasonable at that time.
After punching my details into the online form and pressed enter, the next screen was a big fat DECLINED.
I was thought the pure fact that I never had credit, my credit would be good.
I was wrong, so I decided to get my credit file.
How did I get my credit file
In the UK, there are 2 main credit reference agencies that provide these details for a fee.
I used credit expert, which costs £14.99 per month after 30 day trial.
What did my credit file look like?
Like a ghost town but I could see a few things on my credit file, which contributed to my low score.
In no particular order of importance
1. I was not on the electoral roll (its important here in the UK)
2. I had a delinquent account that had been closed (It was a dispute that I had with a bank 4 years ago for £66, which I didn't pay because I was stubborn)
3. Had many searches on my credit file with no credit given. This was when I got insurance quotes for my cars/bikes.
4. I was not at a single address for a good amount of time.
5. My available credit was £0
Here is the snapshot of my credit report
How I improved my score
I will give you the detail in a nutshell and if you have any questions, feel free to ask.
Applied for the electoral roll
(might not be the same in the US or any other country)
I applied in Apr-14 and it went on my credit file in Jun-14, I moved in July but updated my file
I then applied for the highest rate credit card (the only one I could get given my credit history)
They gave me £200 credit to start, so I just kept it for a few months without spending, maybe spent a few £ here and there but paid it off.
Once they seen that I wasn't spending, they increased my credit limit to £600 in July, I moved house and hammered my credit card in September for around £590.00, which lowered my score.
I paid this off in full 1 week later (this was all planned).
I waited until October-14 until I asked my bank for an overdraft of £800. Given that I was now on the electorol, not in debt and settled me credit card and had a £600 credit limit, they gave me an overdraft for £500.
After this, I applied for another card, which got declined so I hammered the first credit card again and paid it off a few days later, hammered it a week later, then paid it off again.
Done this a few a few times until Jan-15 and then asked my bank for a bigger overdraft because I wanted to buy a car (it was a lie). They gave me an overdraft of £1500.00 which pushed my credit rating up A LOT.
I think this happened because my track record of paying my credit on time coupled with the amount of credit I have available.
I then applied for another credit card and they gave me £1200.00 limit and about a week after that, my first credit card limit increased to £1800.00.
I have now just sat on the credit, without spending.
My next step would be to spend about half across my credit accounts and pay them off straight away.
Then I will apply for more credit and close off other accounts as settled as I go along.
I will update this with any major changes that happen to my file.
Any questions, please feel free to ask.
Disclaimer.
I am not a financial adviser, I am just giving information based on what I have experienced.
This is not a how to guide nor am I persuading you to participate.
If you choose to follow the steps I have taken, results will vary dependent on the country you live in, your economy (availability of credit) and your personal profile.
You take credit at your own risk, not mine
Where it started
Ok, so I have always been paid fairly well, enough to never need credit. I live within my means and until a year ago, I never had anything on credit; apart from a bank account that I have had for many years.
I was booking a holiday just a little over a year ago and I thought it would be a great idea if I got a credit card, just in case I needed one. Given that I am sensible with money, there was no chance I was going to overspend, so I guess, what the heck, I might as well get one.
I applied online for a Capital One credit card given that the rates seemed reasonable at that time.
After punching my details into the online form and pressed enter, the next screen was a big fat DECLINED.
I was thought the pure fact that I never had credit, my credit would be good.
I was wrong, so I decided to get my credit file.
How did I get my credit file
In the UK, there are 2 main credit reference agencies that provide these details for a fee.
I used credit expert, which costs £14.99 per month after 30 day trial.
What did my credit file look like?
Like a ghost town but I could see a few things on my credit file, which contributed to my low score.
In no particular order of importance
1. I was not on the electoral roll (its important here in the UK)
2. I had a delinquent account that had been closed (It was a dispute that I had with a bank 4 years ago for £66, which I didn't pay because I was stubborn)
3. Had many searches on my credit file with no credit given. This was when I got insurance quotes for my cars/bikes.
4. I was not at a single address for a good amount of time.
5. My available credit was £0
Here is the snapshot of my credit report
How I improved my score
I will give you the detail in a nutshell and if you have any questions, feel free to ask.
Applied for the electoral roll
(might not be the same in the US or any other country)
I applied in Apr-14 and it went on my credit file in Jun-14, I moved in July but updated my file
I then applied for the highest rate credit card (the only one I could get given my credit history)
They gave me £200 credit to start, so I just kept it for a few months without spending, maybe spent a few £ here and there but paid it off.
Once they seen that I wasn't spending, they increased my credit limit to £600 in July, I moved house and hammered my credit card in September for around £590.00, which lowered my score.
I paid this off in full 1 week later (this was all planned).
I waited until October-14 until I asked my bank for an overdraft of £800. Given that I was now on the electorol, not in debt and settled me credit card and had a £600 credit limit, they gave me an overdraft for £500.
After this, I applied for another card, which got declined so I hammered the first credit card again and paid it off a few days later, hammered it a week later, then paid it off again.
Done this a few a few times until Jan-15 and then asked my bank for a bigger overdraft because I wanted to buy a car (it was a lie). They gave me an overdraft of £1500.00 which pushed my credit rating up A LOT.
I think this happened because my track record of paying my credit on time coupled with the amount of credit I have available.
I then applied for another credit card and they gave me £1200.00 limit and about a week after that, my first credit card limit increased to £1800.00.
I have now just sat on the credit, without spending.
My next step would be to spend about half across my credit accounts and pay them off straight away.
Then I will apply for more credit and close off other accounts as settled as I go along.
I will update this with any major changes that happen to my file.
Any questions, please feel free to ask.
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