Help with improving credit rating..and also if clear balance how much reduced

trafficzombie

Hi

I am wondering if anyone can help with a few things.

Firstly if I owe about £1500 on debts and I want to clear them in one rather than paying over the agreed time frame, what kind of % amount will be accepted to clear? For example if I owe £1500 would they accept say £1000, or something similar?

Secondly…

I have a fairly bad credit rating (I presume) I have been accepted on credit cards recently by Capital One and Aqua, who have both increased my limit recently as I have cleared and paid on time.

I owe in total about £3000 to various things (loans, credit cards, etc, etc)

At the end of August I am clearing the whole lot off and for the first time in about 15 years I will not owe anyone a single penny, woo hoo.

I live my mother (yes sad for a nearly 35 year old ...lol) so don’t have a mortgage or rent (which I will soon as I will be getting my own gaff), I think what I am trying to get at is how long does it take till a credit rating improves, and how to do it.

Thanks in advance

Tixy

Hi and welcome

trafficzombie wrote: »

Hi

I am wondering if anyone can help with a few things.

Firstly if I owe about £1500 on debts and I want to clear them in one rather than paying over the agreed time frame, what kind of % amount will be accepted to clear? For example if I owe £1500 would they accept say £1000, or something similar? who do you owe this money to? have you defaulted on the payments to these debts previously? if not then they probably won't accept a reduced settlement at all. Depending on who the creditors are they might just settle for say 90% but this would be marked on your credit file as partial settlement, which will not help with improving your credit rating.

Secondly…

I have a fairly bad credit rating (I presume) why do you think you have? have you seen a copy of your credit file? does it have late payments? missed payments? defaults? CCJs? I have been accepted on credit cards recently by Capital One and Aqua, who have both increased my limit recently as I have cleared and paid on time.

I owe in total about £3000 to various things (loans, credit cards, etc, etc)

At the end of August I am clearing the whole lot off and for the first time in about 15 years I will not owe anyone a single penny, woo hoo.

I live my mother (yes sad for a nearly 35 year old ...lol) so don’t have a mortgage or rent (which I will soon as I will be getting my own gaff), I think what I am trying to get at is how long does it take till a credit rating improves, and how to do it. Depends how 'bad' it is.

Thanks in advance

If you have defaults or CCJs these take 6years from the date of default. If you have missed payments these are noted for 3years (usually).
Without knowing what is on your credit file then its hard to say how long it will take to improve.
You need to know what is on it in the first place - suggest you get copies of your credit file from experian and equifax (£2 statutory report or there are free trials you can sign up to if you will remember to cancel them).

trafficzombie

Thanks for that

I have my credit report and there are no CCJ's but defaults..yes for sure

So after 3 years from the last one they clear, but I presume your credit rating improves over time...is that correct ?

Tixy

Certainly a 5year old default probably won't have such a big impact on you ability to get credit as a 1 year old default.
And a settled default is a bit better than a unsettled default.

But to have anything like a 'good' credit rating you will need to wait 6years from the default date of whichever creditor gave you a default most recently.

trafficzombie

Great

Thank you