Arrangement to pay - Credit File

cobracock1979

Hi,


My credit rating is a mess but I would like to improve it as much as possible.

I have been on a CCCS plan for nearly 4 years, and have paid every month without missing any payments.

however, I have recently acquired my Equifax Credit File (and I am awaiting Experien).

On the Equifax file, of 6 Creditors that have all been receiveing payments from me through CCCS for 4 years, only one has market each month with AP (barclaycard).

The rest simply show Default and nothing after the Default marking for the past 4 years, even though they have been receiveing regular monthly payments from me via CCCS.

Should they not be showing each months with AP? If so, am I able to contact them and insist they correct & backdate to show AP in previous months and moving forward. Is it their choice whether they show the account as Default or AP, or should they legally be updating the CRA as AP for my accounts?

is it likely that changing all the Defaults to AP will improve my Credit rating? If so by how much, if any?

All the accounts mentioned are inactive.

I also have a CCJ (unsatisfied) registered may 2006. Once that drops off my file (may 2012) will this have a major positive impact on my credit rating??

Thnaks in advance for any advice

cobracock1979

Also,

I forgot to ask - how long does an AP last on the credit file? i know its 6 years, but is that from the last registered AP entry or is it from when the AP entries started??

In which case, I may actually be better off leaving the account as default and waiting for 2.5 years until the default has completely left my file?

HAYLEY8005

Hi There

Dont quote me on this as i am fairly new to mse but i have a feeling if a ccj is unsatisfied it wont drop off they can add another 6 years as no payment has been made inline with the court order.
But as i say imsure someone will be along that know more

CLAPTON

from what you say, you currently can't afford to pay your debts at the contractual rate
why are you concerned about your credit rating?

cobracock1979

I am starting a buisness and as I director my credit rating will affect the rating of the buisiness (even the ability to open a non- credit bank account) ans also potentially the rating of my co-director. Also in the next few years I would like to get myself in a position where I am able to get a mortgage etc

CLAPTON

you have defaulted on your contract with the lenders even though you have made an 'arrangement to pay' and continue to honour the revised payments.

some lenders will show this as an AP while others show this as a default; there is nothing you can really do about this as it is factually correct, although one can but ask.

while unsatisified defaults and AP show on your credit record, potential creditors will know you can't pay your current debts and so will be reluctant to provide new finance.

usually CCCS insist you take out no new finance whilst still on a DMP with them

cobracock1979

Thank you clapton,


And am I correct in thinking that after 6 years the defaults will be removed completely from my Credit file?

Yes I understand that even as AP, creditors will view me as a high risk. However I would still like to improve my file as much as possible because as mentioned, I want to have as little negative impact on the rating of my new buisness (which will also have a co-director with very good credit) as possible.

For example, I will soon need to open a buisness banking account - we only need a very basic account and will not be applying for an overdraft or any type of credit - however I am worried I may be refused even the most basic of accounts.

My other line of thinking is - if I would get all my inactive defaults showing as AP my next step may be to satisfy my CCJ (this is of course depending on the success of my new buisness, which I am confident in). At this point with my defaults showing as AP and my CCJ as satisfied. would my credit rating not be dramatically improved to the point that I may be able to get a high interest mortgage (obviously one aimed at someone with bad credit, but a mortgage nonetheless)...

CLAPTON

I know very little about business accounts so I can't say anything about them

however, for personal a/cs, having a joint a/c with some-one with a poor credit rating will adversely affect some-one with a good one.

mortgages are somewhat diffferent; 2/3 years of your SE profits certified by an account or tax records and 20-25% deposit will go a long way to getting a mortgage once your debts are satisfied (although the rules are changing all the time in the present economic climate)

anyway my very best wishes for the success of your new venture

cobracock1979

Thank you Clapton you advice and time are appreciated