Advice needed, New user.

TypeRich

Hello everyone,

Would love some advice on rebuilding my credit & a few questions..

I'm in about 7k's worth of debt (6k Loan/1k credit card). I took them both out when I was in the forces, I stopped repaying my payments. When I left they were waiting for me, I have a CCJ & a few defualts (Phone bill's etc).

In the 6 months year or so i've been trying to rebuild my credit score & get out of debt. My credit score has raised by double, I have paid off my smaller debts and have been on top of monthly payments (Phone etc).
Now I have a few Questions.

*Regardless of a high credit score will my CCJ still stop me getting ANY form of credit? Is it worth paying the extra to boost my score (I have creditbuilder & use catalogues and pay them off just so i have payments on file).

*My CCJ is for the value of £282 pounds, can I just pay that off? Understandibly it will be marked off as paid but will it still cause me an issue?

Any info or advice would be really great!

Thanks

Rich

cookie220985

If you have been issued with a CCJ, your credit rating will have been seriously affected. The CCJ will remain visible to lenders on your credit history for six years after it is issued, meaning that you may find it relatively difficult and/or expensive to borrow money in this time.
A bad credit rating obviously affected your score already but it can also affect your chances of getting a bank account and any form of credit - which can make managing and keeping control of your finances particularly difficult.
Most banks will offer a basic bank account to people with CCJs or other things that affect their credit rating, as for the credit, your more likely to be offered as high interst paying loans o cards as possible if not declined, you could always try a pre-paid credit card, thats what i've done.

i vow to save up this coming year thats for sure.

TypeRich

I've already got a prepaid credit card. Would it be worth paying the CCJ off asap? Once paid off will it be marked as paid & will it affect further credit attempts.

Rich

cookie220985

if you can afford to pay it off, then that is a good start, the problem is, once you incur a CCJ on your report it stays labeled CCJ for the 6years like a default, but if you pay it off, it will state a CCJ with the balance of settled. At least if its a settled CCJ you have a 25% more chance of getting better credit, but you still could be declined or wrongly offered high credit by 75% of creditors. After you paid it off, dont apply for credit for 12months or it could prolong your time of bad credit offers. Clear the CCJ then all the seraches that occur in the next 12month period.

DVardysShadow

I think it is worth mentioning [too late for TypeRich] that if you do get a CCJ and settle it within a certain period, it should not go on your credit record. In other words, it is acceptable to have an honest dispute about something and get it settled in court without damaging your record.

TypeRich

Appreciate the help chaps.

It's been on file now for some time so I can only pay it off, better than leaving it.