Repairing My Damaged Credit Rating

Matt7681

Hi all,

Just thought id post with a couple of questions and points regarding repairing a credit rating. I'm a 22 year old with a seriously negative credit rating, as a result of messing about with money while i was younger and alot more irresponsible. I owe in the region of around £4000 to a couple of different places, which has resulted in a CCJ and numerous records of missed payments on my credit file, which obviously has resulted in afew rejected applications since.

Having stupidly done little to resolve the situation previously, i'm now in a position where i want nothing more than to sort the whole sorry mess out, and also feel that financially i can start making dents into the situation.. the long term motivation being able to get a mortgate in afew years time with the missus.

I'm basically just wondering how long it takes to repair a credit file substantially enough for companies to start listening to you again, and how best to repair the credit file? Is it better to continue with monthly installments in order to show you can maintain regular payments, or close and pay off an account in a lump sum as soon as possible? Do all negative credit marks stay on the record for 6 years or can some be removed and cleared before then?

The aim is to have a decent enough credit rating (along with enough money to put down a decent deposit) within the next 4 to 5 years to start looking at a mortgage. Theoretically, if i was to pay off all my outstanding debt within the next couple of months, and maintain a healthy bank balance (i.e no overdrawn accounts, money saved in the bank at all times and payments such as rent and utilities going out regularly and paid), how much of a positive effect would this have on my credit file? Would 4-5 years of being "debt free" be enough to turn a very poor credit file into a decent one, even though my previous debts would still be listed on my file (albeit closed and paid off)?

My debt itself is relativley manageable and i reckon can be cleared quite short term, but now i'm just wondering how quickly i can turn my perilous credit score into a decent (or even moderate) one. Any help would be greatly appreciated.

Thanks for your time.. :hello:

LilacPixie

ccj's stay on your record for 6 years from judgment date.

With regards to credit rating time is a great healer. Get your CCJ's marked satisfied and make sure you are meeting all other monthly payments on time. If you have a CC make sure you pay in full each month.

Really it will be 6 years until you score is fully ok

debrag

if you can afford to pay them off now then i think that is best as 6 years from that date they will drop off.

yanky2001

Hi

Relatively a newbie, just signed up today ! Albeit receiving the weekly newletter for around 1 year !!

Can someone let me know if C/C charges have been claimed, will this show up on your credit score. I have 2 lots from two banks refunded - Halifax, paid cash on the day due, however the bank dont process them till the following day so late. Even though a rep from Halifax has stated cash credited to the account that day will clear - hence no late payment fee. The second was with Nationwide, received a refund onto the account, and paid the remainder of the mimimin payment - so was fined as they dont class refunds as part payment.

I know want to apply for cheaper C/C but am worried this will go against me with a new card Company. As they have only been settled is it worth waiting a month for the credit agency to update their records.

Dont want to be refused credit as never have been.

Thanks for any help given.

:A