‘How can I improve my credit score?’
Part-time teacher Christina Bray, 42, lives in Birmingham with her son Kofi, 14
“I work two days a week in a school, earning £1.1k a month. I only teach parttime as I had breast cancer a few years ago so wanted to cut back my hours.
“I’m desperate to improve my credit rating, which is currently classed as poor. I had a joint overdraft with my ex, who ran up debt which lowered my score.
“My name is now officially disassociated, and last November I remortgaged to get a better rate of interest. That freed up £4k which paid off credit cards.
“I currently spend £100 a month on my remaining debts, which I hope to pay off by the end of the year. I want to take out a loan for a car as well as save for my son’s first car and driving lessons in three years’ time – can I do that and improve my credit score?”
SARAH’S 3-POINT PLAN
1) Boost credit. Christina must avoid any applications for credit and must pay all debts on time for at least six months, so no car loans just yet. She should ensure she’s on the electoral register and cancel any unused credit cards – even if they aren’t being used, they can have a detrimental effect. She could get a credit builder card designed for those who are not likely to get credit from mainstream deals, but remember they have a high APR, so it should be paid off monthly. 2)Slash household spending. Christina could be savvier when she’s going out. Tesco Clubcard vouchers are often worth up to four times as much on days out. Sign up to newsletters from chains like Pizza Express for deals and Google for voucher codes. She should switch and save on electricity, phones and broadband – £40 a month is too much for broadband. Visit Letssavemoney.com for deals. 3) Save on tuition. She spends £60 a month on tuition for her son, but BBC Bitesize is full of free tutorials and Topmarks.co. uk is fab for resources. Christina could look for a uni student to tutor Kofi. Graduates charge as little as £10 to £15 an hour. Some tutors even do cheaper Skype sessions. She could also join up with friends for group tuition.