Defaulted Payments

tomparko

Hi,

This is my first post on here. So, hello all!

I hope I have put this question in the correct Forum. There was so many to choose from.

I have been divorced recently and in the whole nightmare me and my ex disagreed about who should be paying off some finance for some furniture. In the time that we disagreed over this, the finance fell into a 'Default' and this is now on my credit record and reports. I have however paid this off in full now and I am aware that the 'Default' will stay on my record for 6 years but will be shown as 'Settled'.

My question is; will this Default have a major effect in my chances to get credit/re-mortgage etc even though it is paid off in full?

Any advice and info on this would be much appreciated.

Kind regards,

Tom

rayday2

Well the fact that it is a settled default will help. It really depends on which agency they use and what there requirements are for a mortgage. Our credit history is not good we are on a DMP and we went to Halifax and our history according to them only showed one catalogue account in arrears and we were turned down (please bare in mind our history is dire!) but it made me chuckle that the only thing on there system they didn't like was the smallest debt we had!

Just to balance that story the next day I rang Chelsea building society and they let us have a mortgage even with there search which showed all the biggies!

Tixy

It will have some effect but if the rest of your report looks okay (some credit accounts, not too much credit, balances not all at the limit) then it shouldn't prove disastrous. The older it gets the less likely it is to affect the decisions made.

As rayday says not all defaults are registered at all agencies. you could get copies of you credit file from all 3 agencies (£2 each by post) and see if it doesn't appear on any.

There is quite a bit of heresay about as to which bank uses which credit agency for which type of debt so you may be able to hedge your bets in your favour. (its worth noting that at least 1 bank use 1 agency for loans and another for credit cards). The CC forum has a thread on who uses who but I'm not sure how reliable it is.

TMoose

Mind you - some defaults are registered at all CRA's - for example my Egg default from '05 Although I apparently have an RBS default that neither the debt, nor the default show on any of my reports.

I'm looking forward to settling my default this year, and plan to have a party in 2011 when my file is nice and clean!

tomparko

Hi,

Thanks for the info. This has put my mind a rest. The rest of my credit report is OK as far as I can see, so hopefully I may be OK with the re-mortgage that is due oin January.

Thanks again,

Tom