Credit rating advice please. Defaults.

2impatient

Hi

I have 6 defaults from 2005 which were automatically registered when my husband and i applied for in IVA. However the IVA failed after being sent round twice as no creditors voted. Things took a turn for the better and we managed to settle the defaults around £10k in total. So they are all settled and showing so on my credit report.

I still have an arrangement to pay on a loan with Lloyds TSB for £10k and o/d of 3K which i am reducing each month. I also have a credit card with Lloyds tsb with £1250 which i am paying regularly. I have a catalouge with £200 which i am paying regularly as well.

What i need to know is, will my credit rating start to improve provided i stick to plans/ make payments on time OR will it be bad for 6 years due to the defaults from 2005. I have a financial association with my husband who also had defaults but has slightly better credit than me.

I know the defaults wont be removed for 6 years but can things improve for me, even with an arrangement to pay in place?

Another couple of things....are defaults as bad as CCJ's? (in the credit report world that is) and i cant get a normal bank account. We've been with nat west for 2 years and we have a step account but it's difficult as not everywhere accepts 'solo'. They wont upgrade our account even though we are always in credit and pay in over £2500 per month. Any ideas what our credit rating would need to look like before applying for a normal account? I'm worried about damaging it further by applying and being rejected.

Any help would be received with thanks.

C x

whatatwit

I don't know the answers, so not much good there.

But, the DFW board is quiet this morning, so maybe try bumping this thread later on when more folk are around.

Personally I would think that keeping up to date with current payments can only help.
Which bank are you with?

saubryn

I can't help with the credit report thing, but if you desperately need a Visa debit card try checking out the Current Accounts section of the forum - there's a thread about Citibank there. My credit file is a mess with a ton of defaults and even a CCJ. I'm self employed so won't be paying in a set amount each month, but I got a debit card with them.

I believe if you're paying in over £1500 per month you can get an overdraft with them, but not sure how stringent their credit checks are for that.

If its just a debit card, they seem to offer them to everyone no matter how bad your credit rating is. If you go through quidco theres £50 cashback on offer too.

Donedoingdebt

Your credit file can't get any worse by sticking to your arrangements to pay. However, it's very unlikely that you'll be able to get any decent form of credit from a legitimate company until the last of your defaults disappear. Regards your association with OH, you'll both be affected until the last default off either of your files is gone. Regarding CCJ/default comparison, again, they are both as damaging as each other to your credit file for 6 years from date of issue. However, the CCJ has more legal implications if you don't stick to agreed arrangements. I imagine your credit file would have to be pretty good to get a "normal" bank account as they're granting you a form of credit such as OD facility & use of Visa debit & cheque guarantee card etc, but others here may know more on that subject. Roll on 2011!

msmicawber

Hi 2impatient,

I'm not very knowledgeable about the ins and outs of credit ratings, but someone will be along soon who is, I'm sure.

I'm not convinced that a credit report with a few black marks on it makes that much difference in many cases. As you can see from my signature, it took me years to pay off my CC debts (after defaulting on a couple of payments), and the debts on my credit file is now marked as 'satisfied', and will be on there for another 5.5 years. During that time, I have moved house various times (rented accommodation each time), and passed the managing agents' credit checks; I have also gone from a basic bank account to 'full' one with debit card and agreed overdraft arrangement, and have managed to get (and pay off) a loan from a high street bank; I was even offered a credit card, which I refused.

It appears to depend very much on why you are being credit checked as to whether the odd black mark makes any difference.

If I've understood your post correctly, your main problem is that NatWest won't allow you to go from a Step account to a 'full' (or whatever they're called) current account even after two years of keeping in credit. That seems a bit harsh, as most banks only require you to manage your account well for 6 months before allowing you to upgrade. Have you asked them why they won't allow you to upgrade?

2impatient

Thanks everyone for your replies.

We do not have an overdraft facility on the account yet there have been a couple of occasions where the bank have authorised payments to be debited knowing there's not enough in there and then charged us for their good will!
I have challenged them on this and demamded a full refund of fees over the phone, they eventually agreed. Since then this has happened once more yet no charges appeared on the account