how long till i have a good credit history?

costaerer

i have got into a lot of debt over a short period of time and have an appaling credit history.

i have just started a dmp and have paid a few creditors off with f&f settlements.

officially,if i continue the dmp according to them it will take seven yrs to clear....so even if i pay more money to them and get it clear in say.....3 years, will i have to wait another 6 yrs or so before my credit history is 'good' enough to get credit again?

how long does it take after paying off all your debts and having no arrears or defaults for your credit history to look 'good'?

Nargleblast

Someone may correct me but I think it is 6 years from when an account goes into default. if you have a number of accounts defaulted then I assume it would be 6 years from the date of the last one to default before your history is clear?

Lois_and_CK

Once a payment plan is finished, it takes six years to clear from your credit file, as far as I know. Or a default takes six years to clear from your file.

In the meantime, you can improve matters by closing any unused accounts or cleared credit cards, and reducing your credit limits with your creditors. You can also make sure you're registered on the electoral roll, and check that your credit file isn't listing any credit against old addresses.

You should also identify why you want to get credit again. If this is for mortgage purposes then that's fine. But if you're keen to get loans/credit cards in the future then you should examine the reasons for this, considering the situation you're in at the moment. Most people in our situations, after having spent years doggedly paying off debt and going without, never want to owe anyone anything ever again.

costaerer

im only 20 now, so my whole future is ahead of me.i do not know if the future about mortgages and credit cards. i am not planning to take out anyc redit for a long while....but if need be, i want to keep my options open!

all my credit cards, bar one have been cancelled by the credit card companies themselves as i got behind with payments. i only have one now with a 185 credit limit that im keeping for emergencies.

Lois_and_CK

costaerer wrote: »

im only 20 now, so my whole future is ahead of me.i do not know if the future about mortgages and credit cards. i am not planning to take out anyc redit for a long while....but if need be, i want to keep my options open!

all my credit cards, bar one have been cancelled by the credit card companies themselves as i got behind with payments. i only have one now with a 185 credit limit that im keeping for emergencies.

Now's the perfect time for you to be budgeting - skills that will see you through a comfortable financial future. Please try and avoid the cycle of debts that a lot of us on here have got into. Once you are debt free, use those budgeting skills to save up for things you want, rather than relying on credit. Check out the old style board, the pensions board, and the savings board for great advice.

Good luck with your debt free journey.

fermi

If the account has been defaulted than it is removed from you credit report 6 years from the initial default date, regardless of whether or not the debt has been settled at that 6 year point.

If a debt has not been defaulted at any point, then it is removed from your report 6 years from the final settlement date.