advice on repairing credit rating... I have 5 defaults though...

tracey_02

Hi All

I am looking for a bit of advice from anyone who can help really! I recently got my statutury credit report and I knew that I had some defaulted accounts, but didn't really know the extent.... However, I am now paying back all of the accounts that I owe money to

Obviously, the position that I am in at the moment, means that I cannot get credit anywhere to start to rebuild my awful credit rating that I currently have. Will my rating begin to improve itself as I pay off these defaulted debts? Or only once they have been paid off in full? Does keeping up these payments help to dilute the damage or not?

All the advice I can see here is to try to get credit cards and accounts to help to rebuild credit but I cannot get any and am not particularly fond of the idea either, are there any other ways? I pay all my household bills on time, broadband, sky, phone, rent etc but I am not sure whether these help on file or not.

Please someone offer me some advice as I have looked around and just don't understand what I can do in the position I am currently in.

Thanks

Tracey

[Deleted User]

Hi,

You should read Martin's Guide about repairing credit: http://www.moneysavingexpert.com/loans/credit-rating-credit-score

If you have tried to apply for any credit rescently then I would avoid doing this any more for a while 6 months to a year.

Continue to pay of the default accounts as this will help. Defaults will drop off 6 years after you defaulted, (5 years in Scotland).

Make sure you are on the electoral register.

There are credit cards out there for people with adverse credit - Like Vanquis or Capitol One (all in Martin's guide), you could also start with something like a mobile phone contract.

But personally I would wait until at least some of your defaults are marked as settled, to improve your chances of being accepted.

But read through the guide.

HTH

D9

tracey_02

Hi,

I havent applied for any credit at all recently, I just know that at the moment I wouldn't get accepted for anything, probably not even a mobile phone contract. I have read the guide and am still a bit fuzzy on what options I have. I am worried that I won't be able to get a mortgage in the future because I made some silly mistakes. If I keep paying these off for say a year or so, without applying for any kind of credit, am I more likely to be accepted for a mobile contract then? I have applied to be on the electoral roll, I didn't really know how important it was to be on this before. I am worried about attempting to apply for any kind of credit card in the near future for fear of being declined and showing up on my credit file.

Tracey

Mowgli87

Hi Tracey,

What are the dates for the defaults?

tracey_02

The default dates range from 2008-2009. So they will be with me a while yet... Most will be paid off within 1-2 years though.

Tracey

KingElvis

Those defaults really need to be settled and you need to leave it a few months, once you have, Vanquis will accept you with open arms and an interest rate of about 6 squillion.

Good luck

tracey_02

Do you think I need to wait until they are all paid off in full before attempting any repair then?

Tracey

Mowgli87

Obviously settling these accounts will improve your score... however, as long as you dont default anything else in the meantime, I would aim for 2014/2015 as your good score date!

Im in the same boat as you, so although your rating wont improve dramtically for a few years, concentrate on getting the debt paid off and keeping up to date with payments on non defuaulted accounts.

There are a number of things that attribute to your score, not just defaults... things like payment history and amount of debt count as well. For example, On Equifax In January this year I had a 'score' of 171 (very bad!!!), I had 3 defaulted account, with a total default balance of £5241 and an account with 2 late payments. I purchased my credit score again last week, at my score is 190. Not a huge improvement, but its only taken two months for an improvement. This is because I settled the late payment account before it defaulted, and my default balance is lower as Id made two months of payments.

Also, make sure you are on the electrol role!
Hope this helps!

tracey_02

Thank you very much I only have my experian statutory credit report so I have no idea what my actual score is, I just know that it must be low! Does your credit score show up on only the full credit reports?

Tracey

Mowgli87

No it doesnt. Im obsessive so Ive subscribed to Equifax for £6.99 a month and get myself a new credit report every 3-4 weeks so I can keep an eye on balances and make sure my creditors are updating it every month. The credit score is seperate and it costs £5.95. I'm going to purchase this every quarter or so just to see what progress Im making as it also gives you reasons behind your score and how to improve it.

I havent done any of the other reports (experian etc) yet... but Ill move on to those eventually. My defaults on equifax will drop off in 4 years, but Im determined to increase my score before then, even by a little!

Some may think its a waste of money, but Im seeing it as keeping on top and in control...at least thats what Im telling myself haha!!

Tixy

tracey_02 wrote: »

Thank you very much I only have my experian statutory credit report so I have no idea what my actual score is, I just know that it must be low! Does your credit score show up on only the full credit reports?

Tracey

Don't worry about your credit score - its irrelevant to you as with those defaults you know you won't be able to get any credit for sometime. As said above once they are paid off check that they show as satisfied defaults, and a while after that you could probably get one of the lower sub prime cards to start re-building your credit file. But you almost won't get any high-street credit until your defaults are at least 5years old. After 6years the records and defaults will no longer appear and assuming you've kept a good record aside from those defaults (with your sub-prime card or similar) then you should find you are able to get better credit products.

Domino9 wrote: »

Continue to pay of the default accounts as this will help. Defaults will drop off 6 years after you defaulted, (5 years in Scotland).

Just as an aside - even in Scotland they stay on for 6years (its only the SB legislation that differs the CRA reporting is the same):)