Satisfied default on credit file....

clusters

Hi there - please have a read and pop a response on, the more the better,

I stupidly defaulted on a loan years ago and the default is shown on my history from 2004. I paid this all off last year and it is shown as settled/satisfied on my credit file. I have no missed payments since 2004 on any accounts, I have a Mint Card (since Jan 2008) and a Natwest Credit card who I bank with (since June 2008) - I recently paid off a Natwest £2k loan so that is settled now (all my payments were spot on). I have a mobile phone account open for 3yrs now, no missed payments and a mortgage (joint with my OH).

I am hoping to upgrade my car shortly and have £5k of my own money to put towards it but may need a little extra on top (say £2-3k).

What are your opinions on whether or not I will get accepted on an unsecured loan, and if so- on a rate that is not sky high? I wondered what difference a settled default makes compared to an open one. I understand it's still a default and makes me a risk but your thoughts would be great.

Huge thanks in advance!!

standupguy

The fact that the default is marked as settled is better than an unsatisfied default and your credit record since is good.

This bodes well if a manual underwriter looks at your application but may still be an issue under automatic credit scoring.

You would get HP from the motor dealers finance company in view of your improving credit record but particularly because of the amount of deposit you are putting in.

You can still get some good rates on HP and will be in a strong position to negotiate a low rate.

recyclingbox

should do. i have just got HP on car and my credit history shows TWO satisfied defaults from four or five years ago (and a couple of missed cc payments this year)! the amount of deposit you are putting down shows the lenders that you are willing to accept a great deal of the risk because despite only lending you 2K they will still own the car until the financed portion is settled.

Marc1983_2

Hi folks newbie to the forums here!

I'm in a similar kind of situation here where i have an equifax score of 405 but a settled default from 5 and a half years ago still showing on mt credit file. My car has totally given up the game now and was looking to take out a loan to purchase a new car.

I've also got a loan currently that i would be looking to consolidate at the same time!

Do you think this will be ok?

TIA,


Marc

TheKeyMaker

Wait a bit more until your defaults reach a 6 years milestone then it would drop off from the Credit Reports and then you could apply for whatever you wanted with better possibilities and less risk to be declined, not because of your score but because of the content.
7 months ago wife and me were looking for a £12k car loan. Took on board some advises from this site and got a £500 car; never happier (touch wood!) and we’ve completely forgot that we were looking for a new car – still rolling! … and we did get a break to put aside some savings.

WhySoHard_2

If you've managed to get two credit cards fine with the default on there then presumably it's all plain sailing from here?!