Credit rating after repayment of default

tosh3

I'm after some advice where possible. A year and a half ago I had severe debt problems and I defaulted on a credit card and a loan. 3 months later I paid off the defaults in full with all other credit back in order.

Is it possible to remove the defaults from my credit score or am I stuck with them?

If there is no way of removing these defaults, is there a number of years before they become irrelevent?

Any help/advice appreciated.

Brian1966

tosh3 wrote: »

I'm after some advice where possible. A year and a half ago I had severe debt problems and I defaulted on a credit card and a loan. 3 months later I paid off the defaults in full with all other credit back in order.

Is it possible to remove the defaults from my credit score or am I stuck with them?

If there is no way of removing these defaults, is there a number of years before they become irrelevent?

Any help/advice appreciated.

Possibly can be removed...
One man that can...username Never-in doubt.
He is best person to advise on this..No doubt..he will be along shortly to answer this

PNPSUKNET

They can only be removed if incorrectly issued, however most are correctly issued. It will stay on your file for 6 years from issue

Moggles_2

Congratulations on turning things round.
:beer:
We do not have the right to have data removed if it is basically correct, but you can ask the credit reference agencies to put a notice of correction on file explaining why you think information is misleading. This notice will then be seen by banks, mobile phone companies etc, when you apply for credit.

Note: most credit decisions are computerised, so if there is a notice of correction on file, your credit applications will take longer to process because they have to be referred for a manual decision i.e. a person will decide whether or not you can get credit.

Rebuilding a good credit history takes time, but you've made a start. Meanwhile, you may be able to reduce your costs using credit cards you already hold. For details, see Martin's *Credit Card Shuffle*article

http://www.moneysavingexpert.com/car...-card-interest

Windscreen_Viper

It rather depends on what you define "default" as....

If it is a missed payment for 3 months that you are marked as in "Arrears" - this is not a default notice as defined by the consumer credit act - A default notice you would have known about as this would "normally" only be issued if you have gone more than 3 months in arrears (i.e. 4 months or more sometimes) and it would tell you clearly that a default notice has been registed with CRA's.

A default would indeed stay on your credit record for 6 years - however 3 months of arrears would generally disappear after 2 years as most records only show the last 24 months of you account performance - so if your account looks like this....

000000123000000000000000

Or even like this

000000111000000000000000 (this one showing that you had 3 months of difficulties but never got more than 1 complete month behind in payments)

then I suggest you have nothing to worry about as it will be seen that A) you had problems 18 months ago you solved them and settled yourself right back in line & C) you have maintained the account perfectly since then

If the information is correct then as has already been advised, you will not be able to erase them, just wait for them to fall off the other end in 9 months time

S

chattychappy

Windscreen Viper's beaten me to it.

Bear in mind that many people miss payments from time-to-time and probably one or two have little effect. Perhaps you went further than that, but it seems you never got far behind, so I'm not sure if whether you really "defaulted", or just missed payments. In the latter case, as further months of on-time payments occur - and there have already been 18 of those, your "dodgy period" will look less important and be less detrimental.

In principle you can't have information removed if it is correct.

thriftymomma

Most of mine have 36 months months of activity as opposed to 24.

Moggles_2

Yes. Also, I wouldn't close the account. If you do that, the dodgy data stays there for another 6 years.

The CRAs keep payment history on active accounts until it drops off your file 36 months later.

If you close down the account, the final 36 months of payment history stays on file for 6 years from the date the account was settled.

So, if you want the negative data to disappear from view in the shortest time possible, keep the account open and active

YorkshireBoy

Moggles wrote: »

The CRAs keep payment history on active accounts until it drops off your file 36 months later.

If you close down the account, the final 36 months of payment history stays on file for 6 years from the date the account was settled.

Whilst that's true for Experian Moggles, my Equifax paper copy statutory report shows the last 48 months of payment history.

Moggles_2

YorkshireBoy wrote: »

Whilst that's true for Experian Moggles, my Equifax paper copy statutory report shows the last 48 months of payment history.

Thanks,YB. It's a good thing somebody's paying attention.

That said, if you want your nasties to disappear from view in the shortest time possible, keep the account open and active

tosh3

Thanks all. To clarify I defaulted (due to poor financial advice from an IVA company that subsequently failed) November 2007 on these credit accounts, but paid them off in full early Feb 08. I don't want more credit for at least a couple of years (mortgage) by which time the housing market may have staged a recovery and another bubble begins. That's if we can avoid a hyperinflation! Sorry off track.

I'll see if a correction notice can be added to my credit file, other than that it's another 4 1/2 years to go!