Defaulted Loan - Credit Score Advice

safyis32

Hi,

I hope this is the right forum section.

We will be applying for a new mortgage over the next 6 months and because I know I have bad credit (I've been refused a bank current account), I'm trying to rectify my credit problems and find out why my credit is so bad.

Unfortunately in 2005-2007 I had a rough patch and buried my head in the sand for a while, everything from that period is either paid off or we have an agreed payment but obviously it continues to affect me.

I have problems on my file, 1 which is a credit card and I may need to query that elsewhere and a defulted bank loan and would like some advice please:-

My credit reports have been done by Equifax:

Problem 1:
In 2007 (End of) we defaulted on a £17,000 bank loan from HSBC, this was passed to another agency who we have been paying £250per month as agreed, the amount remaining to pay is £13,600, this shows correctly on the Equifax report, however its just the balance which has been changed and the individual payments do not show on the chart so it looks as though we have not made a payment since 2007.

Problem 2:
There are 2 records relating to an Egg Credit Card, one settled one is paid monthly by direct debit, I've only ever had 1 Egg card, does it matter that there are 2 records?, the other is paid minimum amount each month (£1032), I intend to pay off fully soon but will it be affecting my credit score.

Problem 3:
A Capital One credit card, in default paid off in 2006, unfortunatly I made a partial settlement (I only owed £300) and I really regret not paying the full amount because it says so on the credit file, does this matter or not?

Many Thanks for any advice offered it's very much appreciated.

seeya23

i think you find it hard to get mortgage with what on your file may get one with someone like ge money
but there apr is like 11.5%

http://mortgage.gemoney.co.uk/en/mortgages/index.html

safyis32

Hi,
Thanks for your reply, I already have a mortgage but we about to sell our home and move away for personal reasons, our current mortgage is up to date and all okay.

I just want to try and repair my file as much as possible to give me the best possible chance in 6-12months.

Thanks

seeya23

if you cant get a current account you will find it hard to get a new mortgage

monkey_fan

I have been in a similar situation - we had a mortgage and then needed to move (and indeed increase the mortgage for a bigger house). I was very worried at the time about the problem but the best thing to do is take control. Firstly I got a great broker (make sure you speak to them and tell them everything before you chose which one to go through). Plus I spoke/wrote to all my debtors to see if they would change anything on my credit score to improve it (having behaved for a while). Lastly when making the mortgage application I wrote cover letters to go with it, explaing my situation, what I have in place to move forward and all the good things I could list. Don't go on about why it happened! In the end we did get a good sized mortgage and even after the first 2 years we will still have a good apr if we can't get another. It also helped that we were smart when chosing the house and got a good deal. Most important - take control!

safyis32

Thanks I'm going to give it a go writing to them, it's just so frustrating albeit my own fault.