I basically nailed my credit rating to a sinking ship before I went to university by getting overdrafts and a credit card and a mobile phone and not paying for them... probably about £3,000 owed. I still haven't paid them – so some of it may have been written off... County Court Judgments etc. I do, however, have a steady job – earn about £50,000 and am 25-years-old and have not been out of work since finishing University. I need a basic account to run my bills and enable the bank to see that I actually am responsible with my money these days so that they can invite me to take up credit products at a later date. I currently run a branch based basic cash current account with A&L which does not permit me to do this. How can I fix this (as at the moment no one can see that I am being responsible with my cash as the account is branch-based). Is there an account you could recommend?

Aaron Bartlett

Assuming you began your university course when you were 18, the debts you racked up before you became an undergraduate will now be at least seven years old. As a result, it’s quite possible that they will already have dropped off your credit report, because information about bad debt is usually kept for six years. Of course, the only way to find out is to get hold of your credit report and check it carefully. If the debts are still registered and aren’t due to come off your report anytime soon, your best option – and the responsible thing to do, now you can afford it – is to pay them off. You could also add a note to your report explaining that you got into difficulties while you were an impoverished and somewhat foolhardy student, but that you have now graduated, got a good job and grown up. Prospective lenders will then see your note and might look more kindly upon your chequered record. Once you’ve checked your credit report, and sorted it out if necessary, speak to your current bank and perhaps a few others to see what your options are. Most banks now offer so-called ‘basic accounts’ which usually come with bill payment facilities. And if you operate the account well, you’ll eventually be upgraded to a fully functional account with a proper debit card and an overdraft facility. These days, banks pass information about how customers manage their overdrafts to the credit reference agencies. As a result, having an overdraft facility, whether or not you use it, is a great way of starting to build a positive credit history that may eventually unlock the door to other lenders’ credit products.