Credit rating - how long to clean up?

Helen302

Hi all,

I'm new to this website and wish I saw it a long time ago when I was struggling to decide what to do when there was no money left in the pot to pay all my creditors, luckily I found Paypal and am well on the road to recovery. I've got just under 2 years to go to polish off my current £28K debt (was £50k 2 years ago so making good headway!) It's made up of stupid credit card purchases, cash on credit cards and silly consolidation loans, a ridiculous waste of money but heh, we learn. I pay off £800 a month, have never missed a payment and give them any yearly bonus I receive from work, I have no CCJs or anything like that, just bad credit obviously because Payplan have negotiated frozen interest for me.

With that said, my query is ..... I've notified Experian immediately of any creditors that I have totally paid off - how long will it take before my credit file is fully repaired?, say for a mortgage application - not that I want to leap into credit again very quickly!!!

Thanks a lot,
Helen

moozie_2

Hi there and welcome

You are doing brilliantly with your debts - well done! :T

I don't have a definitive answer for you but I am sure someone else will be better informed and offer you advice soon.

I read on here that CCJs etc take 6 years to clear from credit files but not sure about any other sort of default

Best of luck with everything!

apples101

someone replied saying that if you maintain an account for three years then your prevous years are erased, however if you close the accouint they stay on file for six years........ i'm sure someone will correct me if wrong tho.

Helen302

Thanks for that, I didn't think about it like that, whenever I've paid one off I've been so eager to close the account and get shot of them but maybe I'm being hasty and they can work for me, 3 years is better than 6 if that's true! I have heard about the 6 year thing but then surely if you pay your debts off fully, albeit with frozen interest, they must be more lenient on you than people who have gone bankrupt or have CCJs?

I hadn't really thought about exactly what the bad credit rating would be until my boyfriend recently mentioned about buying a house together after I've paid it all off.

Thanks a lot,
Helen

cardy_2

I would double check on the arrangement Payplan have sorted for you. In my case they negotiated smaller payments with someone then and a year on I now have £210 late payment charges and in the eyes of that debtor I now have a bad credit rating (which I did not have with them before). I have gained nothing from this and my 6 (or 3 year) proven good credit rating has not yet begun.
Ring Payplan and your debtors and check if interest is frozen and has it fully been accepted. Payplan negotiated a monthly payment less than an interest I was being charged and again after a year I was contacted by that company threatining legal action.
(Hope I've not depressed you to much....sorry)

Experian_company_representative

The answer depends on the status of accounts on your credit report. Any accounts that have defaulted - which is usually the case re debts included in a debt management plan - will be kept on your credit report for six years from the default date, although reducing balances and eventual satisfaction should be reflected in the monthly updates. The three year period relates only to accounts that haven't defaulted. Live accounts only carry a three year history so if you keep an account running and out of default, late payments will disappear after three years. Once live accounts are closed, the information is effectively frozen and kept for six years.

Helen302

Just so I'm understanding you correctly!

I have defaulted on every account as I've taken the frozen interest route.... so what you're saying is leave the accounts open with a null balance and then in 3 years they will show a clean bill of health for me? but if I close an account down the details of that will remain on my file for 6 years?

Thanks cardy - I keep fully aware of what Payplan have negotiated for me but will watch out in future for what you mention

Thanks very much for both your help
Helen