Messed up my Credit Rating,Help Needed!

jazzythumper

A few years ago I completely messed up my credit rating, well in April 2008, I defaulted on a credit card ( I wont go into why but I was pretty messed up at the time!).

Since then i haven't been able to get any credit cards until last summer, when I managed to get a Capital One card designed to rebuild a credit rating (and even had the limit increased on it), at the time my rating was around 760 on my Experian rating, since then i managed to get another card which made my rating drop to just under this. It was a card i could transfer a balance too interest free for 15months or so.

Stupidly for some reason I didn't set up a direct debit to pay the minimum balance each month and i missed the payment date by 5 days. Since the default there was nothing bad on my file, I am seriously concerned that this will have messed up my credit score for a long time!

I hadn't done anything to mess up my credit score since that default, but before my missed payment my score was 635. I assume now it will drop lower.

The it says that the recent cards and credit searches have damaged my score. If i continue to repay them continually will there be any way i can get a mortgage any time soon?

Any advice would be greatly appreciated.

Thanks

jazzy

Eonel

My feeling is that you are unlikely to get a mortgage until your 2008 default drops off your credit record.

A late payment by 5 days may lead to a one month missed payment marker on your file. In isolation this is of little significance and will soon be ignored by lenders. However the default will not be ignored until it drops off in 2014.

Your credit score will have been lowered by getting the extra bt card - but again that should be be less important to you. Now you have 2 cards, you should not need to not apply for any further cards and concentrate on managing these 2 well.

& please do not read too much into credit scores provided by Experian & do not pay for them. They are useless as they do not take not account many other facts looked at by lenders including your salary.

jazzythumper

Eonel wrote: »

My feeling is that you are unlikely to get a mortgage until your 2008 default drops off your credit record.

A late payment by 5 days may lead to a one month missed payment marker on your file. In isolation this is of little significance and will soon be ignored by lenders. However the default will not be ignored until it drops off in 2014.

Your credit score will have been lowered by getting the extra bt card - but again that should be be less important to you. Now you have 2 cards, you should not need to not apply for any further cards and concentrate on managing these 2 well.

& please do not read too much into credit scores provided by Experian & do not pay for them. They are useless as they do not take not account many other facts looked at by lenders including your salary.

Thanks for the advice, so I have absolutely no chance of getting a mortgage until then, what about if it is with my girlfriend who has an immaculate credit history?

CLAPTON

well, mortgages are different from unsecured loans and different criteria apply


the only wya you will know is to ask and find out from a mortgage lender or a mortgage broker

jazzythumper

Before I missed this payment I was offered a mortgage over the phone by a company that was suggested on Capital Ones website, the only problem is i believe they need to do a credit search to offer you a mortgage and i dont want to lower my credit score any more but having a credit search

rartherinv

even if you get a mortgage you will be paying £thousands more in interest due to perceived risk by lenders. a couple of extra percent or even a few decimals can add a huge chunk when it's multiplied by 25 years. is that fair that your gf pays £thousands due to your credit rating? i would keep saving for another 2 years and let it slip off your file so then you will be borrowing less and at a much better rate.

jazzythumper

rartherinv wrote: »

even if you get a mortgage you will be paying £thousands more in interest due to perceived risk by lenders. a couple of extra percent or even a few decimals can add a huge chunk when it's multiplied by 25 years. is that fair that your gf pays £thousands due to your credit rating? i would keep saving for another 2 years and let it slip off your file so then you will be borrowing less and at a much better rate.

I'm sorry but the question wasn't is it fair towards my girlfriend, and I am sorry but that is none of your business either as to how it affect her or me, I simply asked the question would it help if i got a mortgage with my girlfriend who has a good credit rating.

Even if the mortgage was arrange now with a high interest rate, I assume it would be possible to switch mortgages to a lower rate after the default has slipped off the file?

Jazzy

jazzythumper

CLAPTON wrote: »

well, mortgages are different from unsecured loans and different criteria apply


the only wya you will know is to ask and find out from a mortgage lender or a mortgage broker

Can you recommend a good one who gives good free advice?

rartherinv

jazzythumper wrote: »

I'm sorry but the question wasn't is it fair towards my girlfriend, and I am sorry but that is none of your business either as to how it affect her or me, I simply asked the question would it help if i got a mortgage with my girlfriend who has a good credit rating.

Even if the mortgage was arrange now with a high interest rate, I assume it would be possible to switch mortgages to a lower rate after the default has slipped off the file?

Jazzy

well you already answered your question as to whether you will be able to get a mortgage when you said you have been offered a mortgage. it won't help that she has a good rating because as with anything in life you are only as strong as the weakest link.

sorry to hit a nerve, but you should consider your partner as well. apart from paying high interest due to your bad credit you will also be linking your credit file to hers by applying jointly for a mortgage, so when lenders search her flawless credit file they will see your bad debt as well.

apologies if that is not what you wanted to hear

jazzythumper

rartherinv wrote: »

well you already answered your question as to whether you will be able to get a mortgage when you said you have been offered a mortgage. it won't help that she has a good rating because as with anything in life you are only as strong as the weakest link.

sorry to hit a nerve, but you should consider your partner as well. apart from paying high interest due to your bad credit you will also be linking your credit file to hers by applying jointly for a mortgage, so when lenders search her flawless credit file they will see your bad debt as well.

apologies if that is not what you wanted to hear

Yes but do you not think i may have discussed this with her before?

Primavera_2

Hi there, It may be worth you posting on the Mortgages and Endowments board. There are resident mortgage advisors on that board who may be able to point you in the right direction.

Is the default on your credit file settled? If not it would definitely be worth clearing the balance as lenders would look at this more favourably.

It may be worth applying for a mortgage with your girlfriend as the lead applicant as her credit file is good.

LTV and affordibility would also be big factors. If you and your partner are both earning a good wage and have a reasonable deposit saved, I'm sure that a mortgage advisor would be able to help.