Cleaning up Credit File

izools

Thought I'd start a new thread on this one.

Just checked my OH's credit report as wanting to get back into "Prime" credit card.

My other half's credit report is currently like this:

>31 Accounts

>Six accounts "Satisfactory", Two satisfied defaults from Nov. 2006, and one Outstanding default from May 2007.

>None of the active accounts have any history of arrears, missed, or late payments.

>Two settled accounts (Catalogues) have a history of one missed payment each from two years ago.

>The Defaulted account is from O2 and we plan to offer Full and Final of 70% outstanding in exchange for removal of the default. I assume they will accept, as no payments have been made to the account in years and it has a high balance of £905.


So, in a few months time the credit report should be more like:

>31 Accounts.

>Five active accounts, newest account over 12 months old

>Two satisfied defaults from 11/2006

>No missed payments on active accounts and two missed payments on settled accounts from 30+ months ago.

>Zero credit searches in preceeding six months

You think that'd be good enough to get back on the "Prime" ladder? OH's Vanquis account has been open since Nov. 2007 and now has a £2,000 limit so there's good history of a well run credit card on there

bingy_burge

31 accounts is alot.

How many defaults are there??

prime I would say is a bit of a way off but someone more experienced than me might tell you otherwise.

I would look at a barclay card intial as its the best of the sub prime cards @ 27.9 I expect his 2k vanquis card is 59.9 or something silly. Does he clear the balance in full every month?

izools

Hmm.

31 Accounts but remember that 25 of these are settled, some settled a long time ago.

Three defaults at present but I am going to persuade O2 to remove theirs so soon there will be two defaults, both satisfied, both from over four years ago.

I'm optimistic! N-I-D suggests that HBOS only look back three years and if all is spick and span for the last three years they won't note arrears & defaults from further back.

OH used to clear the Vanquis balance in full.

They are real swines - they reduced the APR to 29.9% when they upped the limit to £2,000 so OH bought some stuff and rung up a big balance.

"Ypiee" thought Vanquis, we've lured in the purchases, now lets make some money! So APR went up to 69.9%

Wrote to them politely saying "Right, here's a copy of your credit agreement and there's a big red circle around the clauses that you breached"

SO now the account is closed, just clearing the balance with interest still at 29.9% but no longer any credit facility on the a/c, just clearing the bal, hence want to go elsewhere.

exel1966

I think you'd be hard pushed to get back on the prime ladder with 3 defaults showing for the next few years. Obviously your recent history will possibly lead to further credit increases with the cards already held, but prime cards I think may be unrealistic for now.

How come you only list 2 defaults 'in a few months time'. Where's the other one gone ?

EDIT : I see we cross posted and you've answered in your last post. A default will not be removed before 6 years if it's been correctly put there. What makes you think you can get it removed ?

never-in-doubt

If you read my post you'll see that I said that HSBC take each case on its own merits and as quoted, a couple of friends of mine had a default each, one got declined one got accepted. I have had a text back regards this and both defaults were outstanding so that rules out the theory of paid/unpaid defaults.

Regards to your wifes situ, I mentioned, several times in the other thread (same answer, others will confirm the same) - that you're aiming too high. You really need to be getting her to write to each lender that show on her CRA and request they update each closed account as closed. There is a major difference if she has 31 accounts that 'could be used' as opposed to 31 'closed' accounts! So long as they are closed then these will be used only for reference to repayment history but will be counteracted against the defaults.

As previously stated - you need to wait til early next year and try an easy lender such as Tesco or HBOS. However horrid it sounds, you are a risk and therefore the lender will not lend to you - if you want to try go for it - i'll be happy to stand corrected but will bet you 100% you'll get decline after decline as things stand.

With what you've already said, would you lend money to yourself? Sorry to sound harsh but we've been here several times before and no matter how many threads you post on, or how you word it, the outcome and advice will always be the same mate.

Regards to the outstanding default, why bother? If its a couple of years old and you haven't paid into it then let it go statute barred and it'll drop off the same time as the others then. Lets assume you pay it now, they could hold the data for 6 years from the date you paid (only historic data - not the default) which will show late payments!

Original link: http://forums.moneysavingexpert.com/showthread.html?t=1993173&highlight=

never-in-doubt

exel1966 wrote: »

How come you only list 2 defaults 'in a few months time'. Where's the other one gone ?

EDIT : I see we cross posted and you've answered in your last post. A default will not be removed before 6 years if it's been correctly put there. What makes you think you can get it removed ?

Think he means he will get them to remove it - however mobile companies do remove them cos it is in their interest to have money - they don;t care about defaults like banks and will generally remove it upon agreement of full payment of debt.

OP - Send a letter like this to get them to agree to default removal, they will consider it if you don't insult them with a silly repayment offer!: http://forums.moneysavingexpert.com/showpost.html?p=24056685&postcount=4

izools

Re: A default will not be removed if it has been correctly put there This is true the vast majority of the time however I have been told, and read a few example of, defaults being removed as a gesture of good will in return for a good full and final settlement payment on an account that hasn't been paid for a number of years. I can but try! My letters seem to be relatively effective

We'll wait and see how much my OH's chrismas bonus is and then however big that is dictates what percentage of the £905 O2 default they get offered.

RE: 31 accounts, X closed I checked today and only six are showing as active. One of the six is an unsed bank account so I've fired off a letter for my OH requesting it be closed and marked as settled. All the others have a "Settled" date.

Anyway I'm not talking about myself I wouldn't lend money to myself, so I don't expect anyone else to. I'm talking about my OH here who never defaulted on a credit agreement just telecoms agreements through mis-selling. I'm sure you remember that the fake "I'm calling from your network provider" scams were all the rage four or five years ago!!

Thanks again for everyone's advice I will continue to clear things up on the credit file as much as I can and hold off until the outstanding default has been satisfied and removed, making sure not to bother applying for anything until there is 36 months of 100% clean history and nothing outstanding deliquent.

I totally agree that my OH will be declined with things as they stand, which is why I'm posting here to get the best advice I can as to how long my OH should hold off for!

Would I lend money to my other half? Well I do on a regular basis and get it back early with interest If I don't get it back, I just won't put out or make dinner That looming, unspoken threat is normally very effective

What else can be done to tidy up OH's credit file? Well I noticed that the Vanquis account showed up three times, two of them settled, and the active one with only one month of payment history, so I've fired off a letter asking them to remove the two superflous accounts and update the payment history on the active one, citing the credit report and threatening ICO intervention, so that should help I think.

Anything else anyone can reccomend I do over the next six to nine months for my OH whilst we wait for these olde' defaults to stagnate a littme more? All advice appreciated!