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Is my credit rating totally shot?

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GSD4ME
GSD4ME Posts: 116 Forumite
Since I lost my job I have had to use CCs to pay for food, petrol etc so I owe a lot now. I have no intention of avoiding paying these bills, I know I have run up the debt and I need to pay. In a desperate attempt to pay everything off I am selling my house so after that I shall have paid off the morgage, ccs, overdraught, everything. I shan't have anywhere to live but that is another story.:o

Up until last month I always managed to pay the minimum on every card although I was occasionally a bit late paying, never more than a week or so. But last month I coulld not manage to pay anything on my Virgin card. I have written to them to explain that I will pay off everything as soon as the house is sold, in hopefully a few months as I have found a buyer.

My question is about my credit rating. I hope to never have to borrow again but when I have sorted myself out I may need to get a small mortgage to find a new home. I have several slightly late payments, a couple of over the limits and now I have not paid the Virgin card at all for two months. Is my rating likely to be totally rubbish?

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  • zppp
    zppp Posts: 2,476 Forumite
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    GSD4ME wrote: »
    Since I lost my job I have had to use CCs to pay for food, petrol etc so I owe a lot now. I have no intention of avoiding paying these bills, I know I have run up the debt and I need to pay. In a desperate attempt to pay everything off I am selling my house so after that I shall have paid off the morgage, ccs, overdraught, everything. I shan't have anywhere to live but that is another story.:o

    Up until last month I always managed to pay the minimum on every card although I was occasionally a bit late paying, never more than a week or so. But last month I coulld not manage to pay anything on my Virgin card. I have written to them to explain that I will pay off everything as soon as the house is sold, in hopefully a few months as I have found a buyer.

    My question is about my credit rating. I hope to never have to borrow again but when I have sorted myself out I may need to get a small mortgage to find a new home. I have several slightly late payments, a couple of over the limits and now I have not paid the Virgin card at all for two months. Is my rating likely to be totally rubbish?

    Have you taken a look at your credit file as yet? It's just we won't know how the late payments have impacted on your credit file, as everyone's credit file is different.

    I would say with the information given that it will affect your credit file, whether that will stop you getting credit in the future is unclear.
    Best Regards

    zppp :)

  • CannyJock
    CannyJock Posts: 3,838 Forumite
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    Are you claiming all the relevant benefits to maybe help tide you over until your house sells and reduce your reliance on credit cards to begin with?

    How much damage, is done by your late and now missed payment is a tricky one to gauge, depends how it's been reported on your credit report, though you'll need to look at your own report to see.
    "A child of five could understand this. Fetch me a child of five." - Groucho Marx
  • woody01
    woody01 Posts: 1,918 Forumite
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    GSD4ME wrote: »
    Since I lost my job I have had to use CCs to pay for food, petrol etc so I owe a lot now. I have no intention of avoiding paying these bills, I know I have run up the debt and I need to pay. In a desperate attempt to pay everything off I am selling my house so after that I shall have paid off the morgage, ccs, overdraught, everything. I shan't have anywhere to live but that is another story.:o

    Up until last month I always managed to pay the minimum on every card although I was occasionally a bit late paying, never more than a week or so. But last month I coulld not manage to pay anything on my Virgin card. I have written to them to explain that I will pay off everything as soon as the house is sold, in hopefully a few months as I have found a buyer.

    My question is about my credit rating. I hope to never have to borrow again but when I have sorted myself out I may need to get a small mortgage to find a new home. I have several slightly late payments, a couple of over the limits and now I have not paid the Virgin card at all for two months. Is my rating likely to be totally rubbish?

    You will have some late payment markers, and eventually, if you keep not paying, defaults will be set aswell.
    The late payment markers which will be there will definitely have an adverse effect, and a default will floor everything.

    With the above in mind, i doubt you will be mainstream credit worthy for the next few years at least.
  • GSD4ME
    GSD4ME Posts: 116 Forumite
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    Thanks for your replies. So it does not look too good.

    The only good thing, to my mind at least, is that I will owe absolutely nothing, so I will have credit available on the couple of cards I decide to keep (but not use). Will it be a good idea to close the other cards? Will the fact that I owe zero but have available credit look slightly better for me?

    CannyJock, I am claiming Job Seekers but I am not allowed anything else. Every time I try to claim anything the old bags at the DHSS or whatever it is called now, find some reason for giving me nothing. I am clearly too educated and middle class to be able to qualify for any hand outs that others get!

    And I am not really that angry about it. LOL
  • woody01
    woody01 Posts: 1,918 Forumite
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    The only good thing, to my mind at least, is that I will owe absolutely nothing, so I will have credit available on the couple of cards I decide to keep (but not use).
    This might be a mistake to think that.
    If your credit rating suffers, and when they do their checks on credit limits to see if they can increase/decrease them, you may well find that they will make a very hefty decrease because of the missed payments/defaults.

    Most CC companies will do this.
  • CannyJock
    CannyJock Posts: 3,838 Forumite
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    GSD4ME wrote: »
    Thanks for your replies. So it does not look too good.

    Best not to get too fixated on what damage has already been done - if it's done then you're stuck with it. It'll affect things in the short term but get easier in the long term.

    All anyone can do when they're in a situation like yours is do everything possible to prevent things getting worse, or causing any further damage.

    Even once you've cleared the card balances you have, keep the cards and use them each month for a token purchase and clear them in full. This will rebuild a positive payment history.

    If you're 2 months behind with Virgin then that has to be your priority - the last thing you want is a default notice put on your account.
    "A child of five could understand this. Fetch me a child of five." - Groucho Marx
  • jwil
    jwil Posts: 19,423 Forumite
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    Is there no way you can pay anything to the Virgin card? Even if it's just a pound to show willing - perhaps get in touch with them to see if they will arrange a temporary payment plan until you sell the house. If you can avoid the default, it will help.
    "If you can dream it, you can do it". Walt Disney
  • GSD4ME
    GSD4ME Posts: 116 Forumite
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    I made a token payment of £1 to virgin last month and will pay something this month. Hopefully that will help.

    I must say they sent me a letter yesterday which was much less nasty than the previous one threatening me with debt collectors. So hopefully paying something off and telling them what is happening will ease things a bit.

    I will take your advice about keeping the cards and using them for small purchases, CannyJock. Thanks a lot.
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