I applied for a Monument card...and got it.

ti1980

As most people on here will know, they are a sub-prime lender but even so, I didn't think I would be accepted as I have a default on my record and that is a lot worse than missing the odd payment here and there.

They gave me a £3500 limit and I did a balance transfer of £3400 with a 2.5% fee (£85). This is at 0% until January so works out cheaper than my other card which was at 7.9% for 6 months. :T

I should point out the following though as that probably had a bearing on their acceptance.

The default on my record was for about £130, an old store card that I completely forgot about when I moved house. When I found out about it after applying for my credit reports I paid it the outstanding amount in full.
I have not missed any payments in over 2 years and always pay much more than the minimum on my cards (except for my &More card as that is also at 0%).
I have a long record with my current account bank as I have been with them for over 15 years.
I am on the electoral role at my current address and have been for about 18 months.
Before this Monument card, I had not applied for any other forms of credit (apart from increases to cards I already have) in well over 2 years.
I have been with the same mobile provider for over 5 years.

Hope this informations helps someone.

The_Boss

ti1980 wrote:

The default on my record was for about £130, an old store card that I completely forgot about when I moved house. When I found out about it after applying for my credit reports I paid it the outstanding amount in full.
I have not missed any payments in over 2 years and always pay much more than the minimum on my cards (except for my &More card as that is also at 0%).

Hope this informations helps someone.

Congratulations - but just wanted to point some stuff out.

1. A default is a default - doesnt matter that you moved and forgot but you can put a note on your credit record. You might want to do this so people can see it was for a reason other than that you couldnt afford to pay anything back.

2. CRA files do not show how much you pay back, just whether your payments are up to date. This means they only show if you have paid the minimum payment. You dont get any extra credit for paying more than the minimum or the full amount, which is a shame for people like me that almost always pay off thieir non 0% balances in full.

ti1980

I wanted to put a note on my credit report back then but didn't bother as I knew I wasn't going to be applying for any more credit (2 years ago) and also had heard lots of conflicting advice as to whether notes on credit reports are actually looked upon favourably.
I wouldn't even have a clue how to word it but its something that I could do I guess though I don't want any more credit and won'e be applying for any.
What would I say in a note 'I have a default cos I forgot I owed my store card?' I sure they would just laugh and refuse anyway. I maybe wrong though.

The_Boss

If you dont want/need any more then leave it be. It will disappear 6 years after it was settled and I bet its been a good while since you did.

vwman_3

The_Boss wrote:

It will disappear 6 years after it was settled

Am I right in thinking that a default will drop off your report after 6 years even if it is not settled

SamMoffatt28

vwman wrote:

Am I right in thinking that a default will drop off your report after 6 years even if it is not settled

I believe so, I had an old credit card debt from a previous marriage. I never settled the balance of about £1000 because I moved and although I wrote to the lender they never sent me a statement to my new address and never pursued me for the outstanding amount. A few years passed by and I forgot all about it until now. It isnt showing on my credit report. (this was about 7 yrs ago) I hope they dont come after me now!!

The_Boss

Yes, it is 6 years from settled.

The reason the above may not show on credit report is that back then, banks werent required to report to CRAs. My old NatWest credit card and current account were never on any credit report I got - the card was started in late 1997, and the current account in mid 1996. They might have you on a GAIN notice though.

ti1980

I wonder if I get a note put on my credit file it would enable me to get a new mobile contract. I'm happy with my deal at the moment but am always seeing some real good deals about so maybe I should think about what to put as a note.

Anyone got any ideas?

The_Boss

I really dont think you would be turned down for a mobile unless there were serious serious problems, and IIRC the last search by a mobile provider I had done was purely an ID check.

vwman_3

The_Boss wrote:

Yes, it is 6 years from settled.

So a default can be in theory on your file for 20 years.

YorkshireBoy

vwman wrote:

So a default can be in theory on your file for 20 years.

There is some confusion here.

A default stays on your file for a period of 6 years from the date the lender decided you had defaulted, NOT from the date you subsequently settled/satisfied the account.