Credit Rating

Hello123_2

Sorry if this in the wrong section.

I am desperately trying to find ways to improve my OH credit rating so we can eventually get a mortgage if possible. He has been an absolute fool. I had no idea what an idiot he had been until we started getting mortgage applications declined...and well you can guess the rest :-(

Here is a little background from his report:

- 2 defaulted mobile phone contracts in 2008. He ignored them & was 'cut off' etc & they have just been lying on his credit report until recently. I have just paid the outstanding balances (nearly 3 years later!)
- Missed mortgage payments/defaults (he HAD a mortgage with his ex but sold house when they separated and paid it off in full in 2010)
- Lots of missed & late payments on a credit card and 2 loans. Both were paid off in full 2010.

We have applied for 2 mortgages and declined for both. My credit report is good.

I am wondering where to go from here? So far I have registered him on the electoral roll, and ofcourse paid off all outstanding debts.

What else can I do to improve the report? Would it make a difference adding him to my sky account, EON, water etc?

Will we EVER be able to get a mortgage? He has been in permanant employment for 3 years and earns good salary (£30kish).

Any help would be appreciated I am desperate

Tixy

Hi

Looks like the damage is pretty bad and will stick with him for a while yet. Don't stick him on your utilities etc. It won't help him and may hinder you. If you are showing as financially associated on your credit files (from the mortgage applications) then you might want to file notice of disassociations.

What current/ongoing credit does he have? anything? does he have a credit card? if not might be an idea to apply for one (probably need to be subprime) and then use this each month for a couple of items and pay on in full (and on time!). This will help show he can now handle credit responsibly.

You are probably aware of this - but if not, the defaults stay on for 6years - so until 2014, and the old mortgage will stay visible for 6years from the date it was settled, as will the card and loans.

Is he still shown as financially associated with ex he had mortgage with? if so file a notice of disassociation with each of the 3 CRAs.

Its not impossible to get a mortgage with defaults on file, but you are likely to be limited as to who would accept - it won't be mainstream lenders but subprime which will cost more and expect you to have a higher deposit. If you want to go down this route before the defaults come off his file then go to an independant mortgage broker and make them aware of what is on file from the start so they can best assess who might accept you.

Hello123_2

Tixy wrote: »

Hi

Looks like the damage is pretty bad and will stick with him for a while yet. Don't stick him on your utilities etc. It won't help him and may hinder you. If you are showing as financially associated on your credit files (from the mortgage applications) then you might want to file notice of disassociations.

What current/ongoing credit does he have? anything? does he have a credit card? if not might be an idea to apply for one (probably need to be subprime) and then use this each month for a couple of items and pay on in full (and on time!). This will help show he can now handle credit responsibly.

You are probably aware of this - but if not, the defaults stay on for 6years - so until 2014, and the old mortgage will stay visible for 6years from the date it was settled, as will the card and loans.

Is he still shown as financially associated with ex he had mortgage with? if so file a notice of disassociation with each of the 3 CRAs.

Its not impossible to get a mortgage with defaults on file, but you are likely to be limited as to who would accept - it won't be mainstream lenders but subprime which will cost more and expect you to have a higher deposit. If you want to go down this route before the defaults come off his file then go to an independant mortgage broker and make them aware of what is on file from the start so they can best assess who might accept you.

Thanks for your advice.

He is no longer associated with his ex. He has no credit at the moment - he was thinking of applying for a credit card to use (and obviously pay off each month) to help the situation but was worried he would be declined anyway??

I am aware defaults stay on 6 years. He defaulted on the mortgage during 2008 & paid the mortgage off in 2010. Does that mean we won't be able to get a mortgage from a mainstream lender until 2014 or would it be 2016? Or will he never be able to get a mortgage ever again with a mainstream lender?

Is there anything else to improve his credit? Any help would be great Thanks

joedenise

He needs to get a subprime credit card such as Cap 1, vanquis etc and ensure it is paid off in full every month. Would be a good idea to set up DD for full payment to be sure it is paid on time.

Once he's shown he can handle one of these cards properly for at least 6-12 months he should be able to get a better rate on another card.

Don't know about the mortgage so can't help there.

Denise

KingElvis

I know this is the forum for advice but the only advice I can give is wait, you have no chance at all of getting a mortgage with all that on his record.

Mainstream lenders would run away screaming.

Tixy

In the future he should be able to get a normal mainstream mortgage, its not a permanent barrier. But this would be sometime after the last default has been removed.

Sorry missread your first post if the mortgage had a default then it too should go from his file 6years after default not 6years after settled.

A subprime card is the thing to consider now. Have a read of these
'Bad Credit' Credit Cards: Use them to rebuild credit rating
Credit Rating: How it works and how to improve it

Hello123_2

Thanks everyone