Improving Credit Rating

The_Laisy_Daisy

Sorry if this is posted in the wrong place - newbie! I have a terrible, terrible credit rating due to some abuse of credit cards and loans at the carefree age of 18! After ignoring creditors for a year, I took financial advice from the CAB: they recommended that I continue to ignore my creditors as the law (in Scotland) stated that if I maintained zero contact for three years, the debt would automatically be written off.

Anyway, it has been longer than three years (although they're still writing to me!) and I would like to build myself a credit history. I have no intentions of accruing further debts and read this site often for tips on saving etc. However, due to my past behaviour, this seems an impossible task. I cannot even get an overdraft from my bank! I fear I have been caught up in the rejection spiral!

Can anyone give me any advice about where to start applying for credit that is likely to accept me and won't leave 'fingerprints' on my report? I have had a look at the relevant section on this site but I'm scared that another rejection will just be another black mark by my name. Please bear in mind that, although I have no debts, I also have very limited income and don't wish to use the cashplus credit builder which you have to pay for.

Thanks in advance!

CLAPTON

wait 6 years until the defaults drop off your credit files

The_Laisy_Daisy

CLAPTON wrote: »

wait 6 years until the defaults drop off your credit files

It has been 6 years now.

The_Laisy_Daisy

Silky89 wrote: »

I'm not sure why the CAB told you to ignore them if you genuinely owed the money, I would certainly not advise anyone to ignore accounts that have been passed onto collections, as this could end up with you being taken to court for a CCJ, which then would stay in your file for a further 6 years and the court could demand repayments to be deducted from your salary.

At the time, the easiest way out of the situation for me was to declare myself bankrupt, which would have required a court summons from a creditor. It was suggested that if I wait, they may send me one and, if not, the time would have passed so I wouldn't need to repay anyway. 8 years later, I see this may not have been the wisest decision but unfortunately, my local CAB no longer has financial advice specialists to follow up my case!

Thank you for your advice! I'm looking into it! x

CLAPTON

what do your credit files say?

The_Laisy_Daisy

Clapton - I haven't been able to access them recently. A couple of years ago, I checked with Experian. I had some defaults but none more recent than 4 years so they should have passed the 6-years by now. I tried to check with Equifax earlier but got suspicious when they wanted my documents posted to them (paranoid much?!) and cancelled. Noddle couldn't help me either.

Silky89 - no, I didn't know I was still liable, they gave me the impression that the debt would be cleared! :-O Although it is good to know that they can't really take me to court like their letters say! Looks like I've got some repaying to do!

Eek, where to start?!

CLAPTON

well, what your credit files say is what potential creditors see.

any credit search will leave a fingerprint on your file saying a credit search was made and will update your current address.

The_Laisy_Daisy

Silky89 wrote: »

If you don't mind me asking, what kind of sum are we talking about?

I'm not sure of exact figures but I would guess about £10,000. Maybe a bit over with all the interest that will have been added. I suppose in the grand scheme of things it's not a huge amount it's just a bit overwhelming as can't even remember who I owe and how much to each.

The_Laisy_Daisy

I've explained above that I have tried but not managed so far. I don't think I'm on the electoral register which could be why they're not suplpiying the info. I think my first step is to get on it and get the report. I'm hoping they'll have details of who I owe? x

CrispieS

you'll definitely know when the credit score has been improved as you'll start receiving a tonne of credit card letters through the post. I settled a 3 year debt two months ago and I'm now getting at least a credit card letter a week now all saying "can improve your credit card rating"

CrispieS

@Silky89: Thanks for posting about "Secured Capital One credit card", I didn't even know these types of cards existed - feels a safer application than a regular card