How to repair a poor credit history

[carina62]

My daughter is 27 and lives in a rented accommodation. She has a poor credit history and i wondered what she can do to repair it because in the future she would like to get on the property ladder and be able to get a mortgage with her partner. Advice much appreciated, thanks

[nemesis45]

Re: How to repair a poor credit history

Hello Carina,
What is showing on your daughters credit reference files at the moment.?

Defaulted Accounts = Bad
Late /Missed payments = Bad
Arrangements to pay (AP) = Bad.

Long running credit accounts in good order.
Phone accounts
Credit Cards
Loans.

Mortgage lenders now use an extremely invasive credit history questionnaire and increasingly are looking for more than the usual
3 years of good to excellent creditor management, a joint app may be a little easier if one party has an excellent credit profile.

[carina62]

Re: How to repair a poor credit history

I think it will probably be a number of years before she can afford to get on the property ladder with her partner but if they decide to buy a house together, i am not sure of his credit history but I think i will suggest to my daughter that she gets a copy of her credit file and check it out and see how it goes from there. It would be such a shame if she couldn't get a mortgage for a long time.

[nemesis45]

Re: How to repair a poor credit history

It is a slow process Carina, getting a " credit builder" credit card Low Limit paid off every month for at least 2 years, utilities/phone accounts up to date, electoral roll, no frequent home moves and solid employment record.
One VERY big No, No Payday Loans will result in a rejection even if paid off on time, they show the individual cannot manage on their income,#

nem