Default on Loan?

JayB

Hi There,

Back in 2004 I took out a £6000 loan from my bank, Barclays, to go travelling. I returned in May 2005 & was out of work for a few months and was not making any repayments.

They called me and I explained the situation and they agreed to freeze the interest on my loan for 12 months and I would pay back £50 a month. I have not missed a £50 payment & this agrrement finishes next month I beleieve.

I was just wondering what reprercussions this will have on my credit rating? I have done the free trial with credit expert & got my score, which I think was 470, very poor apparently.

Have I actually 'defaulted' on my loan and how will this affect my rating? Also how long will it be on my file for?

I have a high interest, low credit limit (£250) Capital One credit card, which I pay off either the minimum payments or off in full each month to try and raise my credit limit. I was also thinking of getting a mobile phone contract with a spend limit & pay that on time every month, would this increase my credit rating?

Thanks for your time

JayB

Newone_2

JayB wrote:

Hi There,

Back in 2004 I took out a £6000 loan from my bank, Barclays, to go travelling. I returned in May 2005 & was out of work for a few months and was not making any repayments.

They called me and I explained the situation and they agreed to freeze the interest on my loan for 12 months and I would pay back £50 a month. I have not missed a £50 payment & this agrrement finishes next month I beleieve.

I was just wondering what reprercussions this will have on my credit rating? I have done the free trial with credit expert & got my score, which I think was 470, very poor apparently.

Have I actually 'defaulted' on my loan and how will this affect my rating? Also how long will it be on my file for?

I have a high interest, low credit limit (£250) Capital One credit card, which I pay off either the minimum payments or off in full each month to try and raise my credit limit. I was also thinking of getting a mobile phone contract with a spend limit & pay that on time every month, would this increase my credit rating?

Thanks for your time

JayB

rather than look at the credit score (which mean nothing), look at the payment history of the actual loan, how many payments are late, etc. if they have registered a default, it shiuld also state "date of default xxxx"

the record of this account will stay on file for 6 years from whenever the balance hits zero.