A
female
age
36-40,
anonymous
writes:i got a copy of my credit report the other day and i was shocked to learn that my score is very poor. i know that i owe £35k on my mortgage, £9k on my car and £3k on my credit cards (my limit is £15k, given to me by the card companies....i never use this amount, nor did i ask for that much). i have no personal loans. i am shocked my score is 408 as i have never missed a payment and never been late. i earn more than £30k per year and have a healthy bank balance. how can i increase my credit score to help me get the best financial deals in the future? any advice would be most appreciated. Reply to this Question
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female
reader, Dorothy Dix  + ♥, writes (15 May 2011):
Hi there. Just as long as you don't default on any of your loans, are not late, and pay extra on them - not just the minimum amount, these things all help.
Credit ratings, are really all about how well you pay back all your loans.
If for instance you were late with a loan repayment, and didn't call the bank to tell them, this wouldn't help you either. Especially if you do this regularly.
They are really looking at how responsible a person is with their money. Good communication with the bank whenever you are having problems paying is also useful. It shows responsibility. Rather than saying nothing and waiting for them to call you and not taking their calls when they do call you, or not returning their calls.
Spending up big on your credit card, but then only ever paying the minimum payment and continuing to spend. This is perhaps not so bad as no payment at all, just as long as you do continue to make payments every month and on time as well.
It probably does take a few years of this happening - regular loan repayments - to build up a certain trust in all banks. It's not something that just happens overnight.
It could be anything up to 7-10 years to increase your credit rating overall.
A
female
reader, cupidhelper  +, writes (25 September 2007):
hey, if no forgotten bad credit from youth and no stolen idenity,
it sounds like (from an american stand point, I don't know foreign)
you have to much credit vs. you debt ratio. meaning, you only make 30lbs, but your debt is 2.5 times that (I'm including you credit cards which are free of debt but banks worry you'll go on massive spending spree).
See if giving up some credit card will help your rating, but don't give it up-- you have a house and a car, honestly, you don't really need great credit. You might need those cards if you have an emergency, you might need to live off those cards (which can save your house if you need to make mortgage payment though a credit card check), the info just to ease your mind.
Next, figure out how much extra income you get from bank/stock/investment interest and pension your company gives you (american card applications have a spot that for almony, parent support, that you don't need to list but you can)-- don't do anything that would be considered a lie and don't except more credit if they offer, and that should help give you more income to debt.
Last, pay off debt, it'll save you on interest fee but keep 6 month in bill in savings (if you can). also see if you house went down or up and how that affect credit, but under american laws you're intitled to keep your house and ca if you bankrupt-- if that's the case, don't combine debt for the write-off. You'll have cheaper interest and give the BANK more of your house in the process. bancruptcy can't take you house in America, but the bank can always foreclose.
AMERICAN ADVISE BASED ON AMERICAN LAWS
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