Need advice on how to get my credit rating better (ccj)

Arx88 · 10 August 2017 at 12:40PM

Hi, hopefully this is the right place to post, apoligies if not.
This is quite a long story so I will try to shorten it.
I first got into debt when I was about 19 (I'm 25 now) I finished college and could only get temp work and wasn't earning enough money, I also had lots of family problems so I took out a few payday loans (at different times) and as you can imagine I couldn't pay them all back. With all the letters and phone calls my anxiety went up and I became depressed and suicidal (other things contributed also).
My main problem was with Vodafone as I had a contract with them in 2013 I think, I missed a payment bill then the rest. In the end they sent me a letter saying I owed them about £750 and cancelled my contract. It got passed to lowells. A few months ago they sent a letter saying they would issue a CCJ, I responded within the 2 weeks asking to pay in £10 instalments monthly (the total cost is approx £950) they agreed but I now have a CCJ still, I didn't actually realise until recently, they sent the county court letter at some point even though I wasn't communicating with them.
Anyway I now have a CCJ and had about 6 defaults. I recently had to re register on the electoral roll so now all those payday loans that didn't bother with me have now started harassing me again, this could also be regarding paying back the CCJ.
I'm not earning much money and the only way I can get a better job is by doing a short course at college but it's £500 and I can try get a loan anywhere as everywhere says you can't have a CCJ. I feel like I literally can't do anything right now and it's making me depressed and feel like it's not worth living as there Is nothing I can do to make my situation better ( I can't pay off huge sums) I'm even struggling to find a better job.
My credit score is 199 according to clear score where I should says I have one CCJ and 6 past defaults

I know this is all my fault and I wish I could of paid things off sooner but I have never been in a position to be able to pay off in instalments, also some payday loans I find are quite difficult to be in contact with. I realise I should of responded a lot earlier to Vodafone instead of leaving it years but I guess not much can be done now.

Sorry this is long and hopefully someone can help!

heartbreak_star · 10 August 2017 at 2:42PM

Can you get extra work? A few hours in a bar?

Might be worth trying some free courses to at least gain something towards new jobs.

I'm sorry to day your credit rating is trashed for the next six years - maybe put up an SOA on the Debt-Free Wannabe board and see if they can help?

HBS x

DCFC79 · 10 August 2017 at 4:21PM

Remember your credit score is only seen by yourself, lenders etc see your credit history.

Not sure what the previous poster (vishva) is on, the post is coming across as American and wont all be correct or useful for us in the UK.

Get your reports from Noddle and the MSE credit club for a better overall picture.

Arx88 · 10 August 2017 at 4:29PM

I can't find any free courses for what I am looking to do. I am currently doing freelance work and looking for a better job.
My plan was if I get accepted on this short course I would get an evening job also (both in the city).

The problem is I can't do anything I need to do as the CCJ stops me from being able to rent, take out a loan for the course etc.

Also I was led to believe if I paid in instalments I wouldn't get the CCJ but didn't realise until after I had one.
The email I got from Lowell:

Thank you for your recent email.

Due to non-payment, a County Court Claim form was issued against you on 13 March 2017. We are therefore unable to set an arrangement with you and you should instead respond to the Claim issued against you accordingly.

Once we have received your response we will review it, consider any proposal made and submit a request for Judgment where appropriate.

If you are admitting the debt in full and wish to pay by instalments, our team are available to complete the admission form response with you over the telephone if you prefer. They can be contacted by calling the below telephone number. Please ensure you have details of income and outgoings to hand when calling. If you are completing any other from in response to the claim, this should be sent directly to the Court as directed on the claim form.

If you do not respond to the claim within 14 days we may enter a County Court Judgment against you which would mean further costs. This could make it difficult for you to obtain credit, mortgages or even some employment while it remains unsatisfied on your credit file for a maximum of 6 years.

So because I paid in installments and not the £900 in full is that why I have the CCJ as I sent the form on time?

My credit is already ruined is there any point in paying £10 a month to them? This was originally a Vodafone bill...

worried_jim · 10 August 2017 at 4:40PM

Even if you pay the CCJ it will stay on your credit file under public information for six years from the given date. Paying it will have little to no effect on your credit rating as the CCJ will remain what ever for six years from the judgement date. You will have issues for the next six years but things will get a little easier with time but for now you are done for.

Arx88 · 10 August 2017 at 4:47PM

I have already started paying it since May, £10 monthly. It's about £900 but I'm thinking is it even worth it paying if I already have the CCJ and can't move forward with my life

Dobbibill · 10 August 2017 at 5:13PM

#3 is both irrelevant (US information) and spam.

OP - you won't be the first nor the last person to get into debt at 19yrs old. Don't beat yourself up about it - it's about dealing with it so you can move on.

You say several times you were in a 'temp' job/not much money etc but you don't say how much disposable income you have.

A good step forward is to complete a SOA - this should give you some figures to work with.

The CCJ has been issued and as other have said is there for 6 yrs.
Going forward is about damage limitation. It isn't the end of the world and as time passes so the impact will lessen.

Your credit score is how the CRAs view you and how much of a risk you may be to a lender by interpreting the data reported on you. The CCJ will indicate you are a high risk to lenders but this may be a blessing in disguise - it will motivate you to budget and not rely on credit.

The course may lead you to a better job of your choice - or it may not.
You need to consider what you need to do to get in a better financial position, rather than what you want to do.
You may need to consider a different job to balance your books. Do your freelance work in the evenings/weekends until demand picks up for it.

Hindsight is a wonderful thing and yes, maybe you could've/should've responded to Vodafone sooner but what's done is done. We all have things we could've/should've/would've done different through the 'hindsight lense'.

worried_jim · 10 August 2017 at 5:22PM

Arx88 wrote: »

I have already started paying it since May, £10 monthly. It's about £900 but I'm thinking is it even worth it paying if I already have the CCJ and can't move forward with my life

If you don't pay it court bailiffs could come for it (can't pay, we will take it away Ch5) but credit providers won't look at it and think fair enough you are paying it, they'll just see you've had a CCJ and load any application as a risk, which if you get credit will be at Sky high rates as you are now sub-Prime.

Arx88 · 10 August 2017 at 5:40PM

I'm actually 25 now, not 19, I mean the debts and taking out loans started aged 19. So I feel it's worse for me as I still live at home but would like to move out (rent by buy).
I am looking at other jobs but I never hear anything back probably because a lot of my jobs were short term (longest 2 years).
I don't own anything anyway so court bailiffs can't really take anything from me, I don't own a house or car or have any expensive possessions..
I'm not looking at getting a credit card or a lot of loans. I just need finance help for a short course, I have contacted the college to see if I can pay in instalments but doubt it although I would probably prefer to do that than take out a student loan, I would need about £1500.

I'm finding it really difficult to find a job which I have experience in.

I don't have a steady income so not sure about SOA.

DCFC79 · 10 August 2017 at 5:49PM

Have you looked for jobs that require little or no experience, jobs that require some common sense eg retailers, McDonalds ?

TBagpuss · 10 August 2017 at 7:37PM

Paying off the debt even though you have a CCJ is a good idea in the long run. Once it is cleared in full it will be shown as 'satisfied' on your credit report, which is better than having it show as still outstanding.

It sounds as though you admitted the debt but offered to pay in instalments, so the judgement was entered against you because you accepted that you owed the money. Unfortunately at the point at which they are issuing court proceedings most creditors are not going to withdraw the application even if you agree to pay, as that is a more risky and expensive option for them.

Is there anyone (family etc) who might be able to lend you money to clear the outstanding payday loans?

Having a CCJ and defaults will make it harder for you to move on, but not impossible -particularly once you ave cleared the debt.

What is the course you want to do? IS it something you could do part time, and perhaps try to get a job at the same time - maybe worth looking at jobs outside office/college hours (pubs and restaurants are perhaps the obvious options, but it's also worth looking at any local supermarkets with late opening, and call centres)

Need advice on how to get my credit rating better (ccj)

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