building up a credit history

ptr235ted

In 2005 I began to pay payplan a monthly fee to pay my creditors. At the time my overall debt was around £76000, now I owq around £13000, I should be debt free in about 13 months. After that I plan to save up for a deposit to buy a house. As I want to get a mortgage in teh future (2015) I conatced capital one so that I can begin to build up my credit history, I dont want credit, just a history. They refused, stating taht I do not meet their criterior. Since 2005 I have not failed to make a payment to any of my creditors, therfore surely that is proof in itself. Can someone give me any advice on how to build up my credit file so I can get a mortgage in the future

Jimmy_roo

Hi,

Whilst you have indeed paid on time the scoring system that capital one uses would still have seen defaulted debt worth £13,000 which would have sent alarm bells ringing. your best bet is too try and get a vanquis card as these are apparently the easiest to get.

Dont forget though your credit file is still going to show the defaults that have been placed 6 years after the final payment is made so it will be at least 2019 until your file is completely clear so you can build it up again.

As for the mortgage in 2015, if the Markets don't improve drastically I really wouldn't hold out much hope of getting one a preferential rate I'm afraid .

taffy056

Jimmy_roo wrote: »

Dont forget though your credit file is still going to show the defaults that have been placed 6 years after the final payment is made so it will be at least 2019 until your file is completely clear so you can build it up again.

That is not correct ! The defaults would be in circa 2005/6 , they can't effectively default you after you made the last payment! And once the default has been made it will be off your file in 6 years. Please don't give incorrect advice as you will confuse people!

velcromoustache

Which is right?

Without wishing to hijack the OP's thread I checked my Credit file yesterday and I have a default in 06 which was marked as settled in 09, so when can I expect that to fall off of my credit report?

And to the OP, I had several defaults on my file but recently successfully applied for a Vanquis card, with a £500 limit (which I am now using like a sensible human being)

taffy056

The default must be removed 6 years after it was made, check the date of this carefully, if it passed 6 years and it's still there complain to the credit reference agency.