temporary loan arrangements and bad credit

hugomc

Hi,

My wife gave up her work following the birth of our second baby. She has a loan that costs £100 a month, and set up a temporary arrangement with the provider that meant she would par £10 for 6 months while looking for a part-time job. My salary pays for everything else and i couldn't afford to take this on.

We didn't realise she would still get bad credit rating from this, and we have had a rejection from an application to go interest only on our mortgage for a while because of it.

Does anyone know how we can repair this? If we arrange to pay the arrears of the loan, can the loan company as experian or someone to note this, and would it make a difference?

Thanks

CHR15

Unfortunately you cannot repair it but the sooner you brings things back to normal, the sooner it will disappear from your credit file.

hugomc

Ok thanks. Do u know if she paid the arrears, would lenders will take that into consideration?

Tixy

Hi

You need to check her credit report to see what it says. Does she have a default marked on her file? Or an arrangement to pay? or just a row of missed/late payment markers?

If its a default and she pays off the arrears then they would mark it as a settled default - but its still pretty bad news for her credit file for the next 6years (and yours if you have a joint mortgage)
If its an arrangement to pay marker and the creditor agrees to take this marker off for bringing the account up to date then that would improve things.
If its missed payment markers then bringing the account up to date and then having 6-12 months paying the full amount will improve things a bit.

Sarah_Newton

even if it cant be repaired, you can work hard in the future not to let this happen again.

hugomc

Thanks for all your help