Defaults

TMoose

Hi

I'm not sure if this is the correct part of the forum to post this, but you seem like a knowledgable lot, so I'll give it a go - feel free to direct me elsewhere if necessary!

I currently have a default on my credit file due to an unsecured loan I defaulted on in early '05. The default is date 15/3/05, therefore it is my understanding that on 15/3/11 this default will be removed from my file - come what may.

When this happens (and assuming all the rest of my credit history is in order for 2005-2011, will I go back to having a "clean" credit rating in the eyes of the banks. i.e. will I be able to get a CC/Loan/Mortgage if required?

I appreciate this is the "Debt Free" area, however I'm unlikely to be able to afford to buy a house with cash - unless someone wants to give me £250K?

Thanks for your help

MrsTinks

Yes it will drop off your credit file - but your "rating" is to do with a lot more than that. To rebuild your credit rating I would say start now! Get a credit card - yes it will have a pants APR but it shouldn't matter because what you will do is pay it in full each month - THIS is what will help get you better credit. You need to be able to show you can manage your credit...
Infact if you can get 2 and ALWAYS make sure you pay them in full

TMoose

I already have the CC that I'm paying in full each month - thank goodness for payday direct-debits!

I'm working on repaying all my debts, which should all be cleared down by the time the default drops off on 2011. So by 2011 I should have a credit file that reads : 1 x Credit Card (small limit) being paid off every month. (And a couple of savings/current accounts)

So for to all intents and purposes I'll be clean with a good history on that one card.

Donedoingdebt

The default will drop off on 15/03/11 along with all details of the defaulted account & it cannot be placed back on your file by the creditor or DCA.
Assuming you're running other accounts such as loan, credit card etc, then your credit file will appear normal after this date.

Confused_Mother

Hi, very interesting. I am in a very similar situation I have a few defaulted accounts on my credit file due to unsecured loans and CC I had in my idiotic youth! The defaulted dates on my credit file are in 2006 but there is also a 'File Updated for the Period to :' which is 04/01/2009 on all but one which is 08/07/2007? Will these still be removed from my file?

Can anyone shed any light on this? I was in an IVA which failed about 10 months ago, but there is an entry on my file that says 'Voluntary Arrangement Complete' & 'Satisfaction Date : 14 July 2008'?? Any help would be greatly appreciated.

Donedoingdebt

If these are defaulted accounts, they may still be updated by your creditors, but only up to 6 years from the date of default, after which, all details will drop off.

I had an arrangement to pay with MBNA which was never defaulted & was paid in full in June 2006. I believe the details of this account will stay on my file for a further 36 months until June 2009. I shall have to wait & see!

I'm not sure if the failed IVA would change any of the above.

Confused_Mother

Donedoingdebt wrote: »

If these are defaulted accounts, they may still be updated by your creditors, but only up to 6 years from the date of default, after which, all details will drop off.

So does that mean even if nothing is paid in the 6 years form the default date, it WILL go from my file, no matter how many times they update it?? but they can still chase me for the balance after the 6 year period??

Donedoingdebt

Confused_Mother wrote: »

So does that mean even if nothing is paid in the 6 years form the default date, it WILL go from my file, no matter how many times they update it?? but they can still chase me for the balance after the 6 year period??

Yes, that is correct.

Although it is no longer recorded on your credit file, they can still chase you for as long as you owe them money, but they cannot reinstate the details on your file.

If there is no contact between either party for 6 years, then under the statute of limitations, they cannot chase the debt through enforcement via the legal system, but can keep hounding you by phone & letter for as long as they wish.

fermi

Confused_Mother wrote: »

Can anyone shed any light on this? I was in an IVA which failed about 10 months ago, but there is an entry on my file that says 'Voluntary Arrangement Complete' & 'Satisfaction Date : 14 July 2008'?? Any help would be greatly appreciated.

You did enter an IVA, so that will still be recorded on your files.

That will fall off your CRFs 6 years from the start date of the agreement.