Feeling awful!

pickle18

Well have just applied for a credit report and feeling sick to my stomach about it arriving!
Our credit is that bad I have been refused by every company - including consolidation ones ie freedon finance etc though they were mainly due to the arrears on the house.

Also when I tried to get the loan a couple of months ago ( BAD move before my real lightbulb moment) they said I also had a £10000 default on my report. What is a default? We don't have any credit or anything for £10000.

Our debt problems have only really occured in the last 12 months - not sure if thats in our favour or not?!?

I suppose my worst worry is that our mortgage fixed rate will be up in 2 furthur years and what will we do then?? If we get back on track now , is 2 years enough of a good credit rating for us to get a decent deal again?

Sorry for the sad post but I am just terrified of it coming back awful and am unsure how long it really takes your credit card to suitably recover from negative marks.

Pickle

itsarichmansworld

I would question the £10k default if you have never had a debt for this.

See who it is who you "owe" this money too and try resolve it.

learntmydebtlesson

Me to, I recently applied for my credit report and also felt sick with worry waiting for it to land on the mat. However, although it wasn't great it was better than what I had anticipated.

Once I got the report through, I feel that it was actually a start to sorting out my debts as it showed me everything that you owed and with whom. I burried my head in the sandfor so long it was a releif to add it all up and start facing it.

If there is anything on your report that you don't recognise, all the companies names and addresses are included for you to contact them.

A default on a credit file is recorded when the credit agreement has been broken but you can appeal this if you find the information is not accurate on your credit file.

Lots of luck to you.

Sea78

agree with that - definitely question it.

I can imagine how you must be feeling, but at least once you have it, you'll know for sure what you owe and where and also what you need to do about it! Good luck - let us kow how it goes.

Sea xx

pickle18

Well got it back - tbh its quite bad but I was expecting worse and I can see how it can get better. The main problem is default on Mortgage payment and default to egg which got sent to debt collection. Then most things have a missed payment. We just need to make sure everything is kept AT LEAST upto date . Other problem is a CCJ which was paid but remains "unsatisfied" meant to come off our file in 2010.
How long do defaults stay on ? What period of time should I give to stop searches etc? We had a large amount of searches in a short space of time (20 searches in 3 months) as desperation had set in!

Thanks

CLAPTON

maybe i've misunderstood your posts but as i see it your income is very good at over 3,000 per month and your debts are relative modest.

I don't really see why you need to worry about your credit rating at the moment, you need to concentrate on clearing the mortgage asap then the other debts ...with a surplus of over 1,000 per month this shouldn't take long.
Once thats done you should think abouit building up major saving.
You need to get the CCJ marked as satisfied as you have paid it off.
the defaults and the CCJ will stay on your credit file for 6 years.

pickle18

Thanks Clapton.
Thats correct- within the past few months my other half has had a significant payrise so we should now be able to throw money at the debts at a fairly quick rate and certainly building up savings will be a priority after that.
Unfortunately the bulk of the debt was built up over the previous year where his salary was too good and we used credit to live off.
The main purpose to this post was my concern of how damaging our credit rating is going to be in future instances particularly due to our mortgage deal ending in two years.
I am confident now we can easily manage our debts and more importantly commited to it. Thanks again

learntmydebtlesson

Hello

Glad your report was better than you expected!

As for defaults, these stay on your credit file for 6 years, are your defaults showing as "satisifed". Not sure how long a CCJ stays on for? Perhaps someone else reading knows? Yes, get this CCJ marked as "satisifed".

As for searches on you credit file, as I understand it, lenders are fussy about this and they don't like more than 2 in a 6 month period.

Have you any accounts on your file that have been settled and aren't showing as satisifed? If applicable, close any accounts where the balance is £0 from the past.

Did you find out what your credit score is? To give you an idea mine is marked as "Poor" and the last time I checked it was 613 out of 1000. As I understand, all lenders have access to your score but it's not the only thing they consider, they have there own criteria.

I read a post the other day where someone's credit score increased as they started getting financially sorted and they had defaults etc. CCJs and Defaults take points off and I am not sure if these points are added back to your score until they are removed from the file, but if you can bump up your score and mark defaults and CCJs as satified, that's great.

I hope this helps in some way. Good luck!

pickle18

Thanks learntmydebtlesson,
I bought the report that searches all of the 3 credit companies
1 score (experian)- 436 - this seems to be from the amount of searches which is best I suppose as they take the least time to clear
2 score (equifax) :mad: - 271 - due to searches and account management (arrears , defaultts etc)
3 score (callcredit) 771
We have no plans to get anymore credit, which TBH I may of done if I hadn't of seen this awful report. We shouldn't need anymore searches done either - just renewed car insurance, house and opened a new bank account so we can have a good few months clear of any searches.

If this damages my credit for 6 years noone can be blamed but me - all I can do now is keep all payments up to date and stop the credit searches.

Thanks again

immoral_angeluk

Credit scores don't really mean everything as each company will 'score' you using their own system anyway so I wouldn't concentrate on that too much.. just that actual info on your credit file.

learntmydebtlesson

Hi Pickle18

As immoral_angel said above, don't worry too much about the scores as everywhere has different criteria and the main thing is what's in the report. I am only focusing on this myself as I want to get a mortgage.

Although Defaults are noted for 6 years, you can repair your file, which is what you're doing. Pay bills on time each month, check you're on the electrol register, it's an idea not to make applications as it will be added to your file and generally I belive they say no more than 2 in a 6 month period.

Well done on taking this BIG postive step forward.

Good luck!