Interpreting Credit Report

jackkerouac

When i was younger i ran up around £11-12k of debt which after 2003 I pretty much ignored all contact with creditors. A few years ago I began paying it back and when I was contacting creditors one of them the RBS could not find any details of my £2k debt with them whatsoever and advised that it must have been written off. A debt advisor who I had been consulting at the time said that I had got lucky and should forget about it.

Today I was working out what i have still to pay to the final creditor left, and was delighted to see that I would be debt free by the middle of the year. So I thought I would check my credit rating to see where I stand as getting a mortgage is very much on my mind.

When I signed onto the free experian credit check it says my credit score is 989 Excellent, again i was delighted with this.

But it shows two defaults: one which the status is Satisfied where i settled the majority of the balance but still have £140 left on it, and this RBS debt of just under £2k. Both of these accounts last updates are recorded as january 2008.

Bit long winded I know, but I am wondering whether or not it would be worth my while paying these debts too. I am confused as to whether this will affect me getting a mortgage etc, or whether the credit score is all they look at. will it benefit me to pay these two rogue debts or would there be no point, is my credit tarnished by their very existence, or will they dissapear without affecting me if i just hold off?

thanks!

camuk81

Ignore your score as this won't mean anything, you need to look at the date applied not satisfied as check that date and go 6 years from that.

A default paid or not is still bad however please be aware now you have checked your report the creditors may be alerted that you have logged and may start to follow up again

Tixy

Hi

The credit score is not what lenders / mortgage lenders look at - nobody ever sees that score - what they look at is the credit report detail. And yes having a unsettled default will impact on your ability to get credit or what credit you might be offered.

The RBS debt - what is the default date on your credit file? Have you paid anything since 2003?

What else do you have on your credit file? do you have any recent credit accounts showing all repayments on time?
The other default - does it show as partially satisfied? what is the default date on it?

camuk81

Sorry ignore the satisfied comment it should be applied. Example I have an account with shop direct closed since 2010 but updated in 2011. To change the payment history. See the confusion.

In 6 years from 2010 this account will disappear.

jackkerouac

The debt for £140 with Aktiv Kapital defaulted on 24th May 2006. This shows as Satisfied not partially satisfied.
The RBS debt for £2k defaulted 7th Jan 2006.

In 2003 I cut up all my cards and the only credit I have had since then is my mobile phone, which is paid on time every month. Since I began repaying all my debt 3yrs ago, all my debt repayments to creditors were on time, and these last 18mths I have only had repayments to my final creditor.

These two defaults have thrown a spanner in the works!

The RBS account i never made any repayments to whatsoever... being incredibly silly while I was at uni, rather than go out and get a summer job, I opened a student account and over the next few days withdrew the max £2k student overdraught - quite literally that week was my only dealings with them.

The Aktiv one I am not even sure what that relates to...however completely out of the blue recently I recieved a letter from them requesting repayment of a debt, which i called up and made an offer to close the account, so I assume this is the account on my credit file, so I have had recent contact with them. I wouldnt be averse to paying the rest of what is owed this month if it will remove the default. However the RbS one is slightly more concerning

Tixy

Okay RBS - the debt will already be statute barred - which means legally you are not required to pay it. The default and the whole record will go from your credit file 6years after the default date - so next week (actually on equifax it takes an extra couple of weeks to go, but it will be gone soon).
If anyone writes to you in relation to this RBS debt do not agree to pay and come on here for advice about statute barred debts.

The Aktiv Kap - paying off the remainder won't remove the default - but would change it so it shows as a satisfied default - but again it will come off your credit file in May 2012 anyway so you might be as well just sitting it out.

If you are hoping to apply for a mortgage then you might want to consider building up some positive credit history (such as getting a credit card and using for a couple of items each month and paying in full each month) this should help demonstrate you can handle credit well.

jackkerouac

So the RBS debt will have no impact or bearing on me whatsoever after next week? That would be good news.

I have been reading tonight about writing to creditors who you have defaulted with where the balance is under £500, and basically asking for the default to be removed as a gesture of good will. I was considering doing this with Aktiv, but i wouldnt want this to adversely affect things if it is going to be removed in May anyway.

Also on my credit report, in the Electoral Roll section it lists the two addresses where I have lived for the past 25yrs, and by way of a red exclamation mark intimates that these are having a negative affect on my credit, and I have no idea why.

Likewise, the Previous Searches is highlighted as having a negative impact on my credit, and listed is 8 occurences where my credit has been checked, and they are all from insurance companies when I did an online quote on an aggregator site. This was me just me messing around as I have no intention of taking out car insurance as I work in that industry and have a company car with free insurance.......I cant believe that this would affect my credit history, surely not? can this be removed?

Do you have any sugestions which credit cards are best suited to people looking to repair credit history - I would of course be using it and clearing the balance every month. In the same breath, I wouldn't want to apply for credit and be declined, further wrecking my credit history!

Tixy

Some insurance companies do a full credito application and these short term could affect things. After 6months or so they have little bearing. If they are quotation searches or soft searches nobody sees them but you.

Are you on the electoral roll at your current address? if not this makes a big difference.

See here about credit files - http://www.moneysavingexpert.com/loans/credit-rating-credit-score
and 'bad' cards - http://www.moneysavingexpert.com/cards/bad-credit-credit-cards