Rebuilding Your Credit Score...

[Sleeping Well]

Hi.... I understand my credit file/score will be shot to bits for the duration of the IVA and a year after but would be interested to know how to rebuild my credit score.. I take it getting accepted for credit cards etc would help with the rebuilding... Thanks in advance...

[plasticdaft]

Credit card, phone contract etc. Being on the electoral roll is a boost too. Start by taking small amounts of credit to rebuild a good picture of repayments. It can take time.

Paul

[Sleeping Well]

Thanks Paul.., will give it a go, onwards and upwards..

[Foggy]

There is a helpful article here:

http://www.pjgrecovery.com/clean-up-credit-rating

[sponge]

I on the other hand think it's very old thinking and the reality is very different. I suggest when you have finished your IVA in general terms your credit score will be surprisingly high and that fact you have little or no credit history, will not stop you getting regular rate credit cards, as some other post IVA, posters have testified, with alarmingly high credit limits...Despite me beating my drum about it, my reflective thought is, maybe it's not such a good thing after all!.

[Hair_bobbles]

Do you know something? I agree with you sponge- I think this " rebuilding your credit score" is a fallacy,,, I think post iva ,,credit files cleaned up & no credit history- it doesn't make any difference,, there is no credit history to compare you to the next person so why should that make you any less desirable.
I am horrified at the idea of having a credit card to " rebuild credit score" - I don't want one thankyou !! I think it ridiculous that you think you have to have a credit card to rebuild your score.
It seems to me you can't win either way,,,,lenders are assessing you to see if you are going to make them any money!!

If your paying it off on time every month you are not making them any money- but you are showing responsible borrowing- but if you don't have a credit card, you are showing you don't need to rely on credit (shouldn't that be counted as responsible??)& you are still not making them any money-

After struggling with debt,,struggling through iva, I want a clean credit file just for the pure satisfaction of it but I don't want credit - unless it's for a morgage,,,

The new tried & tested motto is " make do & mend" in our household ....

[clairemichelle]

I think ive come round to the sponge school of thinking. Im go to wait till everything has dropped off then upgrade my nationwide account to a paid account and see if they automatically offer me a normal credit card. I've got a regular saver and cash builder account as well as my debit card account and trying to add to both each month.

Dont like the thought of a high limit but just have in time for emerencies for holidays.

Cm x

[Foggy]

The bottom line is that Sponge is correct and his "method" will work, IN SOME CASES.

A lot will depend upon the CRA your chosen lender uses and their criteria regarding history vs score.

And, in every case, of course, you do need to check yourself if your credit files at all three agencies are clean and intervene to correct any errors.

[Sleeping Well]

Thank you all, very interesting, much appreciated.