Trust Deed Forum - Credit Score lowering- 23 months since final payme
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 Credit Score lowering- 23 months since final payme
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pinlessg
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14 Posts

Posted - 06 July 2018 :  15:34:12  Show Profile  Reply with Quote
Hi all,

I made my final TD payment in August 2016 and am now 23 months into the 3 year period following my TD. I have been keeping an eye on my credit score since then and making purchases on a high interest credit and paying off on time on each month. Since then, I made a successful application for a 0 interest credit card (15 months) so took some comfort in knowing I was on the road to recovery. However, over the last couple of months I have noticed my credit score falling and it is now in the 'very low' category. I have continued to make purchases and pay in full on my high interest credit card and have made purchases on the 0% credit card and made on time payments towards the balance over the minimum, but not the full amount.

Can anyone shed an light on their experiences with credit scoring in the 2nd half of the TD? I am just really concerned this will not improve and I'll struggle to get back to normal.

If anyone could help, I'd really appreciate it.

Thanks,

Pinlessg

Pinlessg

TDA (Debt Adviser)
Trust Deed Expert



12472 Posts

Posted - 06 July 2018 :  15:56:58  Show Profile  Reply with Quote
Hi pinlessg.

We always advise not to be too concerned with a credit score at all.

The important factors are to make sure that the report is accurate and that you're making responsible use of credit. In the long run that will improve your ability to obtain credit.

Your credit score may decline if you are building up a credit balance on the 0% card. That's because you'll inevitably have less ability to repay any new credit as a result.

It might also be helpful to get rid of a high interest card if you don't need it. The very fact of having one of these might put off some potential lenders.

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pinlessg
Contributor

14 Posts

Posted - 06 July 2018 :  17:32:53  Show Profile  Reply with Quote
Hi TDA,

Thanks for your help! I didn't know the high interest credit card could have a negative impact on my file. I thought by using it consistently, it would help repair my credit, is this not the case?

Pinlessg
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TDA (Debt Adviser)
Trust Deed Expert



12472 Posts

Posted - 09 July 2018 :  09:30:26  Show Profile  Reply with Quote
I think of this as a process pinlessg.

Using a high interest card responsibly soon after a trust deed is a chance to demonstrate creditworthiness.

Once creditworthiness improves enough to access more mainstream credit, getting rid of the high-cost accounts is probably a good idea.

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