4 year old default

SLITHER99

I defaulted on a credit agreement when I was still a student. To be honest, I didn't really understand what it meant at the time, however despite working two jobs and a few big bills appearing really quickly, I had to use my card, but fell into trouble. The account did default and went to creditors, however I settled and closed the account since. I explained at the time that I had just lost a lawsuit and had to pay up (long story) which is why the card got used. (All whilst I was meant to be studying!)

Ever since, I have been militarily good as gold as far as credit is concerned. I got a capital one classic credit card which I literally buy one thing a month on and pay off the balance immediately - petrol, a CD, something like that.

I now have a mortgage with my partner (she was first applicant) and we have never missed a payment ever!

That's the background, this is the question/rant!

We want to start doing our house up. In order to assist with this, I wanted to get a new credit card to use for materials. However, I find that I have been declined for two separate company's cards. Egg and Barclaycard. I am on the electoral role and everything is tip top.

Is there really nothing I can do about this default as it is completely crippling me and I would have thought that since my default, the fact I had demonstrated a completely straight-laced credit history would have made a difference. I accept I most likely would have had to suck it up with a higher rate of interest, but I don't really want to get into the murky depths of a secured loan from some shonky back-street sub prime mob. It kind of makes me feel that 4 years of sacrificing to ensure everything is paid on time, selling most all of my worldly possessions to get that default paid is pretty much for nothing.

Does anyone else have experience of this? Know what I can do? Can I get the default removed as I currently have a spotless history? Can it be appealed?

I'm new at this game - as you most likely guessed. I think 6 years is a bit too long, surely it just forces people towards the sub-prime markets? I got my default when I was younger, nieve and didn't know the difference. OK its not an excuse, but surely... I dont know. Its bothering me slightly!

thriftymomma

Was it just a default or a CCJ?
Either way, in this current economic climate I just think that lenders are being a little more scrupulous. I have read somewhere that some lenders see defaults just the same as ccj's but don't quote me on that.
It may just be that you don't have a big enough credit history, or that you don't meet their minimum earn requirements. The only ones who know are the banks themselves and you can guess their response lol. Might be worth checking your credit files with all three agencies, just to check there is nothig dodgy going on.
Good luck x
Oh and your defualt will fall off naturally in 2 years - you're 2/3 of the way there!

SLITHER99

Just a default yes. Just ordered my experian report, though I'm pretty sure there's nothing I can do about it. Its kinda hard, the shower just broke down and I don't have the physical readies to get it done.

If my only option is to have to get 3-4 sub prime card just to get a good limit and then pay 35%, well that's just rediculous. I'll never be able to pay it all off. So I guess I won't.

tictax

Unfortunately this is what happens when you default.

The fact that you are p to date now and the default is settled may have helped prior to the current economic downturn but as someone else already said the banks are a lot more picky these days.

You are a great example to people who don't think twice about defaulting on their credit agreements and remember you are 2/3 of the way there.