how long for a clear credit rating

us,thecat&thedebt

hi

sorry if this is else were...

me and my partner are hopefully gonna have the opurtunity to clear our debts at the end of the year...

what i need to know is how long it takes for your credit file to become good enough for a decent mortgage?

we have defaults on our files but no ccj's.

any help appreciated :rolleyes:

Debt_Free_Chick

Each default is on there for six years from the date it was first registered. Even if you pay it off, the default remains on file but it's just marked as "settled" i.e. paid off.

Sorry

us,thecat&thedebt

Debt_Free_Chick wrote:

Each default is on there for six years from the date it was first registered. Even if you pay it off, the default remains on file but it's just marked as "settled" i.e. paid off.

Sorry

does it still affect your rating if its settled...

file_wizzard

us,thecat&thedebt wrote:

does it still affect your rating if its settled...

Yes, the effect on scoring policy’s between a default and a settled default is minimal, all the lender will see is that you have a history of not repaying debts inline with the original repayment schedule.

The fact that it was eventual settled is of little interest to most mainstream lenders, hence the increased interest rates in the sub prime market who will take business like this

us,thecat&thedebt

once there settled will i be able to get a credit card to build up my rating or something...

Peppa_Pig_5

Hi us,thecat&thedebt.

Welcome. Just wanted to let you know that I had a default . It has just gone off my credit report, 6 years later. But just to give you hope, we managed to get a mortgage with the Abbey a couple of years ago at a decent rate. So there are mortgage companies out there that will take you on. As far as the credit cards go, you will probably have to go for a higher rate one for a while, until the default has gone. It is only now that we have been accepted for a 0% credit card, which I admit now feels good.

Also do not apply for too much as that doesn't look good on your credit report either.

Hope I could help and I am sure there are more out there with more advice for you.

GettingThere_2

Hi :hello:

I'm also suffering from the default problem - I have one default registered on my credit report which was settled a few months later. It seems to have a big impact on basic credit scoring as no-one takes individual details into account, making it hard to get decent rates. It's annoying - many companies say they will only accept people who have no CCJs, yet a settled default is just as negative to them.

Good news tho, we managed to get a good mortgage deal after being turned down twice - there are companies that will help. Being honest on the application form seems to help, as the providers may then be willing to look beyond your credit score and into a fairer history.

An independent financial advisor should be able to suggest good deals for you - they get commission from the mortgage companies instead of being paid by you. They can search the whole market, and can find out which deals you are likely to be accepted for.

Good luck with clearing everything Once it's cleared, spoil the cat rotten!

Hugs

us,thecat&thedebt

thanks it makes me feel better that there is a chance..

im only 19 my partner is 21 so we have time on our side glad i went through this debt bussiness young lol

:rotfl: