‘My poor credit score worries me’
Rebecca O’brien, 27 – a fraud analyst living in Paisley, Scotland – is worried about falling into arrears again
“I work fulltime doing night shifts as a fraud analyst, earning £17,500 a year, as well as studying nursing three days a week at college. Next year I’ll go to university three days a week, but I’ll keep working full-time. “I got into debt 10 years ago, thanks to a student overdraft and two credit cards. I kept transferring balances until it caught up with me. Then I was made redundant and fell into arrears. I took out additional credit to help cover the costs, but once I was back in a secure job I took out an Amigo loan to consolidate my debt. My credit score was ‘very poor,’ but it’s now improved to ‘poor.’ “I’m currently £4,500 in debt and I’m paying back £200 a month. I hope to start doubling my payments so I can be debtfree within two to three years. “I need to make sure I’m earning enough to cover my minimum payments, but I worry about the cost of Christmas and unexpected vet bills. I’d love to be debt-free and I want to keep improving my credit score.” SARAH’S 3-POINT PLAN 1) KEEP CREDIT SCORE HEALTHY Information about missed payments on your credit score disappear after six years. Rebecca can call Experian on 0344 481 0800 to ask them to put a “notice of correction” on her file, which is an explanation of the circumstances surrounding “black marks.” She should also try not to use more than 75% of her available credit limit or take out more than two forms of credit within six months. 2) PRE-EMPT CHRISTMAS Rebecca might benefit from putting aside money every month into a Christmas Club, offered by most supermarkets and department stores. Joining the scheme means you can only access your savings a few weeks before Christmas, so you won’t be tempted to dip into them early. With Tesco, you get a bonus £3 for every £50 you save and Asda gives bonuses of £6 when you save £144 – a far better interest rate than a standard current account. 3) CUT PET COSTS Vets’ fees vary depending on the practice, so Rebecca should shop around for vaccinations, dental care and neutering. She can also cut the cost of pet food by as much as 50% by buying in bulk at Pet-supermarket.co.uk. The Pets At Home loyalty scheme is also great for discounts.