How long to rebuild credit rating?

welly_59 · 11 January 2018 at 9:19PM

I'm in a situation where due to either me or my partner taking time off to study over that last few years that I have built up a fair few number of defaults and a ccj.

Fortunately I'm now in a position to see a massive raise in salary. Looking at something in the region of 30k on top of what I currently earn. This means I should be able to settle ALL my debts within 3 or 4 months.

Currently my credit rating is junk, can't get a mobile phone contract or credit card. How soon can I expect to see my credit start to get better and actually be trusted like a responsible person again?

[Deleted User] · 11 January 2018 at 9:24PM

Depends on what lenders you want to impress.

Once defaults are 2 or 3 years old and settled, you should get some mainstream options, albeit not at the best rates.

welly_59 · 11 January 2018 at 9:29PM

The aim is to be in a position to buy a house within 3 or 4 years at a decent mortgage rate.

Only other thing I would like is a car on PCP for the wife at some point within a year

[Deleted User] · 11 January 2018 at 9:31PM

With good behaviour, you will have mortgage options.

But car loans will impact affordability. Taking a long term view, consider whether you can buy cheaper cars for cash.

Chrysalis · 11 January 2018 at 9:33PM

With a mortgage they seem to look at affordability more than credit scoring.

I have absolutely no idea if a mortgage lender would overlook 3-4 year old defaults/CCJs tho. To me it seems too soon but I am just speculating.

My sister gets her contract phones via her partner, as she still gets turned down and thats over 5 years ago she defaulted on her mortgage payments.

However she had done no credit rebuilding.

DCFC79 · 11 January 2018 at 9:35PM

Im sure theres a network you can get a phone contract from. It takes tkme and patience, no need to get a car on pcp just get 1 usjng cash.

cjmillsnun · 11 January 2018 at 11:30PM

Why consider a car on PCP. If you’re getting a 30k pa salary increase then you should be able to pay cash for even a fairly new car within a year.

Sillymoney · 12 January 2018 at 9:37PM

30k gross is different to what you will be left with net remember. Get the job before you start making plans. PCP deals are usually quite strict in regards to your credit record. Your credit record could improve quickly depending on how you have managed your recent debt. Ultimately you want to be in a position to go for the best rates, that means your defaults and ccjs need to be 6yrs plus.

cjmillsnun · 12 January 2018 at 9:46PM

Agreed that 30k gross is different to net, however this will still be a substantial difference in pay. A decent car can be had for little money, a nearly new car for less than 10k.

How long to rebuild credit rating?

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