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Credit Rating: How it works and How to improve it discussion area
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Hi,
I've just accessed my credit report and score and my score is 140 - terrible. The reason for this is due to a few unpaid credit cards and store cards on my account from a few years ago. I got in to money trouble and I simply stopped paying. I plan on calling them all and setting up a payment plan with each of them.
What I want to know is when these are paid off will my credit score start rising?
Is there anything else I can do to start raising it?
I'm looking to get a mortgage in a few years and I'm guessing there's no way is be accepted at the moment. Any tips?
Thanks.0 -
ineedaholiday wrote: »Hi,
I've just accessed my credit report and score and my score is 140 - terrible. The reason for this is due to a few unpaid credit cards and store cards on my account from a few years ago. I got in to money trouble and I simply stopped paying. I plan on calling them all and setting up a payment plan with each of them.
What I want to know is when these are paid off will my credit score start rising?
Is there anything else I can do to start raising it?
I'm looking to get a mortgage in a few years and I'm guessing there's no way is be accepted at the moment. Any tips?
Thanks.
Presumably these accounts show as defaulted? If so then each account will remain visible on your credit file from the default dates shown on file. After that time they will drop off and have no further impact on your file.
If you start repaying them then the outstanding balance will start to decrease, but they will still show as defaulted.
If you pay them off in full before the 6years then they will show as satisfied defaults.A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0 -
So does that mean really the damage is already done and nothing I can do about it until after the 6 years? Also, is it better to show satisfied defaults that leaving it? Thank you.0
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ineedaholiday wrote: »So does that mean really the damage is already done and nothing I can do about it until after the 6 years?
It can be possible to get a mortgage with satisfied defaults on file, though likely only from subprime lenders who will want a higher % deposit and will have higher APRs.ineedaholiday wrote: »Also, is it better to show satisfied defaults that leaving it? Thank you.
The risk in not making payment arrangements is there is a higher chance of a creditor/debt collector taking court action against you and leaving you with a CCJ on file for 6years from the date of the judgement.
How many unpaid debts do you have? what are the default dates on your credit file?A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0 -
Former_MSE_Dan wrote: »
This thread is specifically to discuss theIncluding the new, unique Credit Checker
Click reply to discuss
I had a credit card that was ONLY used for payments to Auction Sniper and to be honest I had forgotten that if I was successful at auction their fees would be charged to THAT card. I had however been paying a wad of bills back along however there had been a Bank Holiday in the way, a real killer of a job replacing a broken shock absorber on my car and the death and funeral of a good friend. Later a fresh wad of junk mail arrived and when I went to sort it ready for burning there was a letter in the middle from that awful credit card company! Allegedly there had been a late payment and the princely sum of £4.89 was owing! I phoned them and they said that nothing was owing now as the payment had gone through OK. Unfortunately according to this letter all the promotions had now been cancelled (there had been a very tempting fifteen month zero interest Balance Transfer offer at a low transfer rate) The lady put me onto the boss who had a Liverpudlian accent that buzzed like a chainsaw. Their best Balance Transfer offer was now 12 months with a 5% transfer fee. I shut down the card as I can say NO just like their pesky computers. They will loose a lot of money with their abrasive style and they will loose market share. The company is the one that times their bills to arrive on a Saturday and this looses two working days just for a start. Bye-Bye I won't be having any more trouble from that lot who hail from across the pond.0 -
I want some advise, I have recently closed a number of catalogue accounts and moved a credit card to interest free credit card. My credit rating has gone from 3 to 1 star and my score has also dropped, I am confused I thought they they would go up not down? I have not missed any payments or made any late payments and also pay more than the minimum required each month on any other debts, how can I make my score improve, I image that things will be more difficult now because my score has dropped, any advise please ?0
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Your score is irrelevant, so ignore it. Lenders just want to see well managed accounts.0
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Just wondering what people thought my chances are of getting 2 consecutive late payment markers from kandco taken off my file.
I just checked my file as we are going to be applyjng for a mortgage next month and these are spoiling my otherwise good credit history.
the late payments occurred due to them making an error with my date of birth meaning I was locked out of my online and automated telephone payment facilities.
I have since completely cleared the balance, it was £22 and the lady who sorted out my date of birth problems, after 2 phonecalls and 1 letter, when I queried the late payment problem told me not to worry she would make a note on my account this was on 2nd june so perhaps it just hasn't been updated?
Really worried, I have emailed them asking for the markers to be removed so waiting for a reply just hoped for some advice on what to expect.I don't get nearly enough credit for not being a violent psychopath.0 -
Hi All just looking for some advice really i had a score of 567 and i had 3 defaults for mobile phones aswell as a credit card with 3 missed payments on my credit report. Paid off the 3 defaults in full and got into an arrangement with the 3 missed payments and that has all been done now. My score is now 658 what else can i do to try and improve my score.
I have looked at everything on my credit report and anything that has a balance will be paid off in full apart from my credit card which i must say i have about 26% avalible balance. Should my score improve slightly when the missed payments have passed the 6 month mark ?
Does anyone else think there is anything else i can do to improve my credit score even into the top end of fair by say Sept ?
All advice would be appreciated .
Many Thanks0 -
Does anyone else think there is anything else i can do to improve my credit score even into the top end of fair by say Sept ?
Your credit score is not the main thing to focus on, the only person whoever sees it is you.
In terms of your ability to get credit having 3 defaults on your file will likely affect you for the whole of the 6years they are on file. But satsified defaults are a little better than outstanding defaults, and the older those defaults get the less of an impact they are likely to have to credit applications.
All you can do now is ensure you don't miss any more payments on anything. Continue paying off your credit card debt each month on time, ideally pay more than the minimum payment each month. Once the credit card is repaid in full then I would keep using it for a couple of purchases each month, and repay the balance in full each month.A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0
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