Help.. Bad Debt!

netgear11

In a spot of bother. made some payments on a natwest student mastercard during uni and the payments spiralled out of control. I haved owed about £300-£350 (presently at £354.56) for the last 2 years now and apparently, my card was defaulted sometime ago, generating an adverse credit card history and also credit rating (although I haven't checked with Experian yet).

I'm now in a position to pay the debts off...

However, I need advice... 6 years for this to be wiped clean is a bit harsh lol. Is there anyway for me to exercise my credit score back up again? I have just made my first main payment of £150, so still owe about £200 more, which I have arranged to pay by next week.

Any advice?

Thaks MSE!

skyrider007

You'll need to get in touch with NatWest. Did you suddenly stopped making payments into your CC account? I thought they would automatically sweep money from your current/savings account to cover the CC debt before going into default.

netgear11

Hi skyrider,

No, they have apparently just defaulted my card. They did not delve into either of my current accounts for the money...

What do you think?

netgear11

anyone lend a hand?

PROLIANT

The bad word on all three of your credit files will remain for 6 years from date of default, pay off the debt and wait a month then get all three of your credit files and check to make sure that the Natwest have marked the debt as settled, wait another month and apply to all three of the following credit card companies for a high rate low limit card and begin to rebuild your credit rating; Aqua (underwritten by HBOS) Capital One Classic Visa and Vanquis Visa, then get your self over on to the Sub Prime Credit Card club thread here and get support and encouragement while you repair your credit rating. Good luck.

poorandindenial

hi netgear

I am normally on the DFW board so will try to help.

If you got a default then they have to have notified you at the time, you need to get hold of your credit reference file and see exactly what is on there. You can sign up for one of the free trials or you can send a £2 postal order or cheque to the credit reference agency of your choice and they will send you a printed version (see the information commissioner's website for addresses and a template letter)

If you had a default all that time ago and then had repaid the card your credit 'score' would have slowly improved in spite of the default (not to the level of someone with no default but should have improved at least a little as lenders could see that you had resolved the issue). The default WILL stay onfor six years though and you should have been sent a notice saying that you had defaulted

Have you been meeting repayments on time for this debt? if not then this will continue to leave your credit 'score' in the merky depths of 'do not touch with a barge pole'

Auntie_K

Hi netgear

You might be able to put a 'notice of correction' on your credit file. This is a way to explain your side of the story, and it means that any lender you apply to must read that notice, before making their decision (i.e. they can't just automatically decline you because of your defaulted account). However I think this would be effective only if you have genuine reasons for not being able to repay your debt before - e.g. if unemployed, sick or something like that...?

jonesMUFCforever

IMO a note of correction will make things worse.

One default now marked as settled is not the end of the world provided everything else is ok.

Don't forget to ask when settling the card to get a certificate of satisfaction.

PROLIANT

jonesMUFCforever wrote: »

IMO a note of correction will make things worse.

One default now marked as settled is not the end of the world provided everything else is ok.

Don't forget to ask when settling the card to get a certificate of satisfaction.

A notice of correction forces an underwriter to look at the application manually, has worked for me twice and been accepted for both products.

jonesMUFCforever

But could just as easily lead to a straight decline where the lender can't be bothered to look at the correction.

Glad it's gone right for you.

netgear11

i love you people! so knowledgeable, i;d be lost without you. many thanks!

i like thte tip about getting out high-risk cc's, however, someone above also said that the fact that i have had a cc defaulted will be apparent for 6 years and what not.. So what is the point of me trying to repair something which cannot be undone?

just trying to see how this works.

PS. sent off for free credit report via DPA