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How long does it take to repair credit rating?
petrapan
Posts: 4 Newbie
I'm beginning to wonder!!
We had some problems in the past with debt. My husband had a few defaults and we had some late payments, payment arrangements etc (no CCJ's or mortgage arrears, though).
For the past three years we have been working hard to repair our credit history. We paid off debts, and managed to get high interest credit cards. We have never missed a payment on these (ever!). My credit card company gave me a normal card eventually, which I still have and keep in good order. I also have a catalogue and an accounts with Next directory, both of which are kept in good order- I've never missed a payment for either in three years. We have made no late payments for utlities etc. We own our home (mortgaged, no arrears), have been on the electoral roll since we moved here, I have a current account with debit card and overdraft (I've had this account all my life, though- I applied to move bank and was turned down due to credit rating!!).
Why is our credit rating still considered "poor" or "fair", and why is it that on the rare occasions we've applied for credit (we approached two companies for a car loan last year, for example) we've been turned down?
How long does it take for companies to give someone a chance? How long does it take for defaults to disappear from credit files- or do they stay there forever?!
We had some problems in the past with debt. My husband had a few defaults and we had some late payments, payment arrangements etc (no CCJ's or mortgage arrears, though).
For the past three years we have been working hard to repair our credit history. We paid off debts, and managed to get high interest credit cards. We have never missed a payment on these (ever!). My credit card company gave me a normal card eventually, which I still have and keep in good order. I also have a catalogue and an accounts with Next directory, both of which are kept in good order- I've never missed a payment for either in three years. We have made no late payments for utlities etc. We own our home (mortgaged, no arrears), have been on the electoral roll since we moved here, I have a current account with debit card and overdraft (I've had this account all my life, though- I applied to move bank and was turned down due to credit rating!!).
Why is our credit rating still considered "poor" or "fair", and why is it that on the rare occasions we've applied for credit (we approached two companies for a car loan last year, for example) we've been turned down?
How long does it take for companies to give someone a chance? How long does it take for defaults to disappear from credit files- or do they stay there forever?! 0
Comments
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Defaults stay on your credit file for 6 years I'm afraid then drop off.
One difficulty may be that you now have too much credit available to you with the cards you have taken and that may scare off some firms, be that large credit limits, or evidence you are only making minimum payments.
Hope that helps.
If you put up a short SOA detailing what your income is and then what credit you have it may assist other MSE's in trying to determine where the problem lies.2013 TARGET £30k
2012 £26500 paid off.
2011 £22750 paid off
2010 £19800 paid off
2009 MBNA Cleared 25.09.09 £34391.33 PAID OFFDFW Nerd 612 Proud to be dealing with my debts0 -
Do defaults stay on for 6 years once they've been paid off, or 6 years from when they arose?0
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6 years from the date the default was entered onto the credit file.2013 TARGET £30k
2012 £26500 paid off.
2011 £22750 paid off
2010 £19800 paid off
2009 MBNA Cleared 25.09.09 £34391.33 PAID OFFDFW Nerd 612 Proud to be dealing with my debts0
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