Credit Cards as the key to a bad rating strategy
1.Get a credit reference agency report on yourself to establish the scope of your problems (see below).
2. Pay out any outstanding judgements.
3. Apply to those lenders so moved, to provide you with a very small credit limit on one of their basic cards, say £200. Click on the button below to get a list of these.
4. Open a savings account and apply for a bank based credit card, again asking for a small credit limit amount, say £500.
5. Use these cards just shy of the maximum, and pay them out before the billing period for about six months. Keep the bank account in positive balance, say £200 in credit, and make your card payments via that account.
6. At the end of six months ask the bank to raise your credit limit to say £1000. The other lender will generally contact you a month or so later offering a higher limit.
7. At the end of the first year apply to your banker for a small personal loan, say £2000. Pay it according to the terms, without fail.
8. At the end of the second year, take out a mortgage, buy a car, go shopping. As long as you do it within your means, you are away clear.
Start building your credit card rating online
Click on this button to go to our credit cards page and select “Yes” where it asks if you have a bad credit history. We’ll find you an adverse credit card provider who will start rebuilding your credit rating.