Improving Credit Score

A question about : Improving Credit Score

Hi All,

My partner has had a VERY poor credit score for a while now (due to unemployment and family debt). We are looking for our own place within the next year and her credit score worries me as i would prefer to get a mortgage with our wages combined and not just rely on mine because my credit score is VERY good.

I believe her score has been damaged because of miss payments, several store cards and unemployment. She's had mobile phone contracts, car finance in the past and has never defaulted on any of these.

the current situation is that she is now down to just one store card which currently has a direct debit set up on monthly installments in order to clear the debt, she has 2 phone contracts in her name and a bank account. She is working full time and has a regular income for the past 6 months.

What can we do to help improve her Credit Score?

kind regards.

Best answers:

• Ignore it, first of all. They are useless.
• What matters is the credit history, if she can run her bank account very well and pay off a credit card each month then it will help.
• Just be careful as banks exist to make money. You are both better off studying these forums to find ways to seriously cut down on BOTH of your spending and pay any debt.
  You both need to have substantial savings to get a mortgage but nothing is impossible. If you both really look at your outgoings you can encourage other to spend less, save more and for her to pay back her debts as soon as possible.
• Anecdotally, I had a mortgage application rejected in December 2013 because my credit report showed that I was near to the limit on one of my Credit Cards...
  Despite the card balance being cleared in full in October 2013 ( I did a lot of refurbishment in the summer of 2013 and put everything on my Barclaycard to get the cashback)
  We gave the mortgage company/underwriter statements showing the zero balance but I received the typical 'computer says no' answer.
  So my advice to you is:
  Reduce the balances on all your borrowing way in advance of applying for a mortgage.
  Pay more than the minimum payment each month
  Don't have any late payments in the past 12 months
  Wait until you've satisfied the above before applying for a mortgage