How to handle debts and credit score

robbiehulse

Hello everyone,

Any advice on the following is much appreciated.

After years of not handling my affairs very well, I have started to get in front. I now would like some advice on sorting out the mess I've left behind!

I've signed up to the free credit report on Noddle (went on Experian as well but found Noddle had much more detail) and have discovered the following on my file:-

An unsettled CCJ from October 2006

A partially settled loan account from April 2009 (which was actually fully settled in August 2008)

A defaulted account with the amount of £214 from November 2010

and finally my biggest concern, a £2,000 loan I took out in July 2007. The opening balance is shown at £3,002, however the current balance is showing £9,021 (?) and the account is not showing as defaulted, simply late payment which they are adding to every month.

My questions are:-

Will the CCJ be automatically removed in October (6 years from the judgement)?

Is there anything I can do regarding the incorrect information on the partially settled account, bearing in mind I have no proof of settlement?

What is the best course of action to rectify the defaulted account? Is it realistic to try and negotiate its removal by offering to pay in full?

What is the best course of action regarding the loan account? I'm a little concerned that as it simply states 'late payment', this will stay on my account indefinetly.

How will any of this affect my credit score, as this is my primary concern?

Finally...

Does anyone have any advice on how to improve my credit score? I have never had a credit card, overdraft or even a cheque book! This obviously hasn't helped when trying to establish a credit score. I have signed up for the Cashplus card which is going well and also have a catalogue which shows on my account. Any further advice would be greatly appreciated.

Tixy

Hi

robbiehulse wrote: »

Will the CCJ be automatically removed in October (6 years from the judgement)? Yes

Is there anything I can do regarding the incorrect information on the partially settled account, bearing in mind I have no proof of settlement? You could try writing to the creditor and stating when it was paid and asking them to correct the entry (its harder without proof but could be worth a try)

What is the best course of action to rectify the defaulted account? Is it realistic to try and negotiate its removal by offering to pay in full? Very unlikely to get it removed by offering to pay (occasionally people have been successful for certain creditors - eg phone providers/catalogues but less likely with other debts).
If you pay it up and it shows as satisfied then that is generally considered better than having an outstanding default on file. Or you could offer a reduced full & final settlement on it (they may only agree to mark as partially settled though).

What is the best course of action regarding the loan account? I'm a little concerned that as it simply states 'late payment', this will stay on my account indefinetly. It will stay on file for 6years from either a default date or 6years from settlement. So it could stay on indefinitely.
What is the actual situation with this debt? have you been paying anything towards it? did you ever make any payments?are you being chased for this amount?

How will any of this affect my credit score, as this is my primary concern? First don't focus on a score that the credit reference agencies will sell you - what any potential lender sees in the actual report with the full data on from whichever credit reference agency they use. The only thing they don't see is the name of the creditors, but they see the CCJ, the accounts & defaults etc.

Finally...

Does anyone have any advice on how to improve my credit score? In terms of improving your chance of getting credit - then the best thing for your credit report would be to pay off all the debts and the CCJ.
Whilst ever these items appear on your file you will find it very hard to get credit. The alternative might be to contact the loan company and come to an agreement with them (perhaps a reduced full & final settlement) and for the others to wait and hope they fall off your file (though obviously it will be quite a long wait for some items).

I have never had a credit card, overdraft or even a cheque book! This obviously hasn't helped when trying to establish a credit score. This is not the problem - you have had credit in the past so do have a credit history. I have signed up for the Cashplus card which is going well and also have a catalogue which shows on my account. Any further advice would be greatly appreciated.

You might also want to consider getting copies of your files from the other 2 agencies (£2 each or free trials) as there could be other debts listed on those - unless you know for certain these are your only debts.

Are your outstanding creditors currently chasing you? If not then by getting your credit file you will have effectively provided or confirmed your current address - so may well find they start chasing again.

robbiehulse

Hi,

Thanks very much for your reply.

According to my file I made the first 6 payments on the loan then nothing since. I have not received mail or phone calls from them since around the time of my last payment.

I'm pretty sure these are my only debts but I will also be obtaining the other reports to be sure.