How do we make our credit rating ok after my husband's outstanding debts?

Wildpoppies

Can anyone advise me on getting our credit rating back to an acceptable level?

Here is all the info:

My husband and I have been married four years. He earns more than me but I had a deposit for our house and because he was on a temporary contract at the time and I am self employed and it was at the time of crazy mortgages, I was able to self certify and the mortgage is entirely in my name though our account is joint and he contributes more than me, so although I provided the deposit he has paid more than me subsequently, even though the house is in my name only. We have never missed a mortgage payment and our mortgage is about 75% of the house value.!

My credit rating is fine.!

My husband's credit rating is awful. He has three outstanding debts which have just come to light (to me at least - he had head in sand). Of these three, one is now completely paid, one we paid a settlement fee in full and one we are paying off on a payment plan. However before these were sorted, unknown to me my husband received several final warnings and reminders and threats of CCJs, though luckily I think we have caught it before it gets to this.!

He has no credit cards. I have credit card debt but it is being paid off gradually and will be paid of in full in about three years I think. We also have overdrafts which again should be ok in two to three years. So oter than mortgage by end of 2015 we hope to be debt free.!

So in terms of credit rating, how do we now correct the damage my husband has done and get it to a stage where in 2016/17 we might be able to get a new mortgage and move house?

Given it is all my husband's fault - he cannot pretend he didn't know about the outstanding debts as he received plenty of letters about them - what does he have to do to make it right? What letters should he write and to whom? If he writes to the compnoes he owed money to what should he ask them to do regarding credit rating?

Obv there are now trust issues me and him have to work out. But right now it's the financial side I need to sort.!

Thanks you

princess*daisy

Defaults/CCJs stay on credit file for 6 years from the date they were issued. So if you are looking to get a mortgage in 2016 or 2017, any defaults or CCJs issued during that month in 2010 or 2011 respectively would not be an issue.

HTH

chanz4

Try to get a captial one card or vanquis, he needs to build up a positive history

Wildpoppies

Hi thank you for replying.

Does the six years start from when the payment plan is finished ie in two years time at current rate paying off £40 a month?

Also other questions:

If we get mortgage together in future does my good rating mean they won't worry too much about his bad one?

So if we get him a capital one card is it enough to buy one thing a month on it and pay it off in full each month?

Is it worth writing to the credit score people? And what would we say?

Thank you

cc4rhu

6 years starts from the date the default or ccj was registered with the CRAs. You need to get a copy of your file to check this.

With regards to the new mortgage I believe that they will look at your husband's file too I'm afraid and it won't look good. This will certainl happen if you need his income to get the mortgage.

Managng a good credit file will help you to get further credit.

There is no point writing to the CRAs as they are honestly reporting the facts (unless there is an error.) They won't remove the defaults. The power with that lies with the lenders and they very rarely do that I'm afraid.

Paul_the_Painter

Writing to them is not going to change anything. You can put a personal statement on your credit file that lenders will look at, but what are you going to say? "I (your husband) ignored my debts for a while"

Credit reference agencies report (or try to) the facts, the individual lender that you are looking to borrow money from use those facts, and other information you supply at the time of wanting to borrow, to come to a decision on whether to lend you money, and to see if you will be a profitable customer for them.


Writing to the Credit Reference agencies is pointless, unless you are correcting an error they have made on your husbands report.

Sorry to sound negative, but there is no easy solution. Luckily mortgages are one of the products (unlike credit cards) where the lender actually gathers more information than that provided by the CRAs, and uses it! In the meantime, it may be an idea for you to open a separate current account for "household" bills and have your husband put money into that each month, along with a reference on the payment from his bank account. This will show to the mortgage company that he can make the large payment required for a mortgage regularly and on time.


On the 6 years front, it is from the last default/late payment registered against the account, so to an extent it depends on how the the £40/month is being recorded. It MAY be better for YOU to take a loan to pay this off in full, and for your husband to pay you the £40/month.

Although think carefully about taking on someone else's debt, in your case you have very little to worry about though, as the house is in your name.