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Credit rating building advise


Omi
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Hello guys, Mrs Omi here!

Have been advised by a friend of ours that a good way to improve Mr Omi's credit rating is to get a home shopping catalogue and run your account immpeccably for a while. You see whilst my credit rating suffered a nasty 'accident' earler in the year if we want to get a mortgage (which we do nearer the end of this year) then we need to repair Omi's slightly dented rating....

Any thoughts?

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Sack him, and go out with me.

No, really.. there are lenders that will give you a small credit card, typically Barclaycard or Capital One. Barclaycard do an "Initial Visa" card which has an extortionate rate of something like 25%, but if you use the card for fuel or something and then pay it off each month, you'll never pay any interest anyway. 6 months of that, and you'll no doubt see an improvement 169144-ok.gif

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Now is this really Mrs Omi, or is it just Omi in a dress again? coffee.gif

When I didn't have a credit rating, I bought a TV from Comet and they kindly offered me credit. I took them up on it and paid it off within a few weeks (it was a 1 year plan). I got a letter thanking me for doing this and they instantly doubled my credit allowance with them.

I repeated this with a few things and I think that helped get me going. Over time, adding mobile phones, cars, mortgages etc have built it up well.

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It might be worth registering on this site. Not cheap but it allows you to check and correct your own records and shows what information people have about you. Also helps prevent identity theft:

www.experian.co.uk

As the others have said, get some credit and keep your nose, very, very clean for at least the next 6 to 9 months.

I know what its like, I've been there sekret.gif

HTH 169144-ok.gif

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I agree with all of the above. Another tip is if you have an account that has been in arrears such as a credit card / store card, don't close the account. Keep it open and keep all payments up to date. If you close the account the arrears remain visible for 2 years, by keeping the account open and paid on time (or not even used) your score will increase.

I work in credit so if you need any specific advise about anything feel free to pm me 169144-ok.gif

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I am an underwriter for a very well known finance house and on all personal credit searches there are (as said) numerous instances of where people have had big and small credit balances and paid or not paid them off. We look for a good spread of credit over a variety of different types and the most important is that all payments are made and on time, not gaps. Also it is important that all your credit cards are not up to there credit limit as this looks like you are stealing from peter to pay paul and you can not handle your financial affairs.

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[ QUOTE ]

Now is this really Mrs Omi, or is it just Omi in a dress again? coffee.gif

When I didn't have a credit rating, I bought a TV from Comet and they kindly offered me credit. I took them up on it and paid it off within a few weeks (it was a 1 year plan). I got a letter thanking me for doing this and they instantly doubled my credit allowance with them.

I repeated this with a few things and I think that helped get me going. Over time, adding mobile phones, cars, mortgages etc have built it up well.

[/ QUOTE ]

that is defo mrs omi, i she very blunt like that......but I love her all the same

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Hi Booster,

We have not credit scoring system in place, this tends only to be used for the ''bread and butter'' type of transaction and normally for the smaller amounts. We simply look at the Experian search, past payment history, deposit to be given on the car, the term they want and any rv or balloon payment required, if that particular underwriter says they will pay.... it's accepted and processed. There are certain rules that have to be adhered too but most of these are common sense... ie, the individual has to be on the voters role !! No recent (large) CCJ's etc.

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Theres no real easy way to "build your credit rating" since it takes a track record of regular debt servicing to get the best rating.

The following always helps.

1. Ensure you are on the electoral role.

2. Ensure you have a landline telephone registered in your name.

3. As above with utility bills.

4. ALWAYS pay off at least your minimum commitment each month.

5. Write to Experian and obtain your credit file. You may be have an "association" with another individual at your address who is bringing your credit rating down. You may disaassociate yourself by writing a letter of explanation of the reasons why to Experian. 169144-ok.gif

HTH

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Taken from an email I received from Equifax, credit searh company

[ QUOTE ]

How to get your credit rating in good shape for 2006

January often seems like the longest month - especially when the excesses of Christmas leave our finances feeling a little overstretched! It's a fact that consumer debt is on the increase and credit is now a part of everyday life. That's why we want our customers to understand the ins and outs of credit, so you can take control and manage your finances to your best advantage.

This month's expert advice from Equifax is aimed at helping you get your credit rating in good shape. Then, if you need to apply for more credit in 2006, you stand a better chance of negotiating the best deal for you.

Because a good credit rating can mean a better credit deal

Why not make it your new year's resolution to get a better understanding of your Equifax Credit Rating™ and see whether there's anything you can do to improve it?

Your Equifax Credit Rating™ is the score that is calculated based on the information contained in your Equifax Credit Report™. It includes your credit card, mortgage or loan payment history as well as any public records such as Bankruptcies or County Court Judgments.

Each piece of historical information on your credit report is rated and given a points score, based on how it compares to people who pay their bills and loans on time. The more positively it compares to those people, the higher your score and the better your credit rating becomes.

How to improve your Equifax Credit Rating™

Here's a few tips from the Equifax experts to help improve your credit score and stand a better chance of being accepted for new credit at a favourable rate.

Make sure you pay off your bills on time, every month

If you're starting to make late payments, don't use credit again until you've improved the situation

If you're making payments on lots of accounts with high interest rates, think about combining your bills with a single loan that you can afford to repay regularly

Check your Equifax Credit Report and make sure there are no errors. If there are, use our online dispute facility to request an investigation.

Apply now for your Equifax Credit Rating™ and you can also view your Equifax Credit Report™, for free. Together, they give you a really good snapshot of how lenders see you. There are more hints and tips online to help you improve your score and you can seek any further advice you need from our Customer Care team. Then you could be all set to negotiate better rates for any further credit you need this year!

[/ QUOTE ]

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