Credit report mistake????

Welsh_girl_3

Hi I hope someone can help me with this... I will try to explain as clearly as possible.
I checked my credit report today and have found what I think are some errors which I need sorted.
For a good few months i was ignoring my store cards (new look and river island) and missed many months payments. The debts were then passed on to a debt collecting company. After being contacted by them a few times I decided it was time to face up to the debts and start paying them - which I did in November last year. I have been paying them every month without fail and am now towards the end of paying them off. When I looked on my credit report it says I am defaulted on both new look and river island. I understand that they have been passed on to a different company but surely the report shouldn't still say I'm in default. Please help??! Any info would be greatly accepted xxx

MrsTUS

You defaulted on your cards when you ignored them, just becuase you have nearly paid them off, it doesn't meant the default is removed. The best you can aim for now is to pay off the store cards and the defaults will be marked as 'settled' however, they'll remain on your credit file for 6 years from the date of issue...

Welsh_girl_3

Ok great, so once they are paid off in full with the debt collecting agency, will they then notify river island and new look who will then change the status to settled?? Sorry i am pretty clueless about all this

MrsTUS

The debt collection agency, once the debt has been cleared, will notify the credit reference agencies that the default is settled, however the default is still on file and you'll find it very difficult at best to obtain any further credit. You also won't be able to obtain a mortgage for the forseeable 6 years, if you do, then it will be sub-prime and ultimately, more expensive. My advice is clear the debts ASAP and then keep your finances in check for the next 6 years until they drop off...

Welsh_girl_3

Wow really, didn't realise it would be that bad. Over a few hundred pound!! Ok thank you very much for the information x

cajef

Welsh_girl wrote: »

When I looked on my credit report it says I am defaulted on both new look and river island. I understand that they have been passed on to a different company but surely the report shouldn't still say I'm in default.

It does not say you are still in default it says you defaulted which you did, it stays on the credit report for six years so if you apply for credit in the future the company will check and will be reluctant to give credit as you have defaulted in the past with two different companies.

xdm941

MrsTUS wrote: »

You also won't be able to obtain a mortgage for the forseeable 6 years, if you do, then it will be sub-prime and ultimately, more expensive.

Why would it be sub-prime after six years?? After the six year date has passed as long as all defaults have been removed and all credit agreement show 'green' this would mean a normal credit report. Sub-prime or high interest rate mortgage would not be the case here.

MrsTUS

xdm941 wrote: »

Why would it be sub-prime after six years?? After the six year date has passed as long as all defaults have been removed and all credit agreement show 'green' this would mean a normal credit report. Sub-prime or high interest rate mortgage would not be the case here.

If she DOES manage to get a mortgage WITHIN the 6 years it will be sub-prime - as per my original message. You've read it incorrectly

xdm941

Oooops .... MY mistake!!! Apologies. Should learn to read better!!!