How bad is this looking?

Rob_UK

Guys,

I got 3 defaults, but all settled. No CCJ. Would another bank open bank account for me? Would I get mobile on contract? Planning to become self employed - do I stand a chance for business bank account? I wish I had never been young and dumb

Thanks,
Rob

DarkConvict

Settled or unsettled, defaults are not good. How long ago were they? Over 6 years they should fall off your file, until they are off they are bound to have an effect. The older they are the better, if these are recent defaults (within 3 years), they are going to have a greater impact

Each creditors scores you differently so there is no solid advice.

Bank accounts are easy to open so should be okay, business accounts i do not know.

Mobile phone, should be okay so long as you haven't defaulted on a phone contract with who your applying to. Also its easier to get lower value (£20pcm) than higher value (£50 pcm) contracts

Rob_UK

DarkConvict wrote: »

Settled or unsettled, defaults are not good. How long ago were they?

1. Defaulted 2005 July, settled 2005 August, broadband
2. Defaulted 2004 December, settled 2005 January. Barclays credit card.
3. Defaulted 2008 January, settled 2010 January. Virgin broadband.

DarkConvict

Whilst having any defaults is likely going to put you in the sub-prime credit category, the "3. Defaulted 2008 January, settled 2010 January. Virgin broadband." is going to cause the most problems.

If your on the voters poll you should be able to get a phone contract, with one of the main suppliers, orange/02/vodafone etc. You may need to pay an upfront deposit, or have a PAYG with them for at least 3 months, before getting a contract with them.

Normal current account shouldnt be a problem, but co-op cashminder would be a safe bet as it has no overdraft or credit check.

Business account im less sure on, but you can always apply.

Keep credit applications to no more than 3 in 3 months, although some say 3 in 6 months. (6-12 a year)

Rob_UK

Should I try to apply for credit card and try repairing my credit history by spending card and then paying off every month?

DarkConvict

There are several ways to rebuild a credit score, see here - http://www.moneysavingexpert.com/cards/bad-credit-credit-cards

DGJsaver

Yes good idea , please please make sure you pay it in full

Rob_UK

Also, I have read that paying by direct debit improves your credit score.

stephy110288

Hi,
I have about 6 defaults from the last year, and tmobile gave me a £30 a month contract, they just insist that i have a credit limit on it which is fine with me. Also if you pay your bill in full on time every month its reported on your credit file. I was also able to open a basic current account with Abbey in september and got a visa electron, don't know about business accounts though

Rob_UK

Stephy,

Then it shouldnt be problem for me to open at least bank account +get contract phone +get some credit cards and start rebuilding my score.

Rob_UK

DGJsaver wrote: »

Yes good idea , please please make sure you pay it in full

Should I max out credit card and then pay it off fully next month, or its fine spending even some 50£ and repaying back coming month?