Improving Credit Rating

The_Laisy_Daisy

CrispieS wrote: »

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"

Thanks! Getting lots of helpful advice here, glad I posted! x

The_Laisy_Daisy

CrispieS wrote: »

@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

PS I applied for this earlier - perhaps a little too hasty but it's done now! One of my debts was to Capital One although they've sold it on to an agency now. They didn't give me a decision, they said they'd write to me - which in my experience means 'no' - but I'll update here when I hear from them.

zerog

Silky89 wrote: »

Collections will still write to you as you still owe the debt, I believe it's 5 years from last payment/contact that the debt becomes Statute Barred in Scotland, in the UK it's 6 years.

I think you mean in England and Wales. Don't know about NI

The_Laisy_Daisy

Dear Miss.....

.................sorry to say on this occasion you have been unsuccessful..............

*sighs*

RichL74

Dont go back to someone you defaulted on years ago, even if it's dropped off your credit report, chances are they will blacklist you for life.

Not the same thing as 'Is there a credit blacklist' you might have read on Q&A's for Experian and the like, it stands to reason - if you owe Capital One a couple of grand (for example) chances are they have your card marked (terrible pun, sorry) that you never paid, so dont apply to them again!

MrSilk

The_Laisy_Daisy wrote: »

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.

In my opinion the CAB are providing totally wrong advice, if you spent the money then it's right that you should pay it back, they are giving the wrong information, if you continue to ignore your debts the creditor can issue a CCJ throughout the 6 years in the UK, and 5 yours in Scotland, which could see bailiffs enter your home with police assistance, or apply an attachment of earning to your salary, which would deduct monthly payments directly from your employer.

I think the CAB need to re-think the advice they are giving.

ALIBOBSY

The CAB from the sounds of it were saying in the op's situation bankcrupcy was the best option, now assuming she/he probably didn't have the cash to make herself bankcrupt the other option was to wait for a creditor to take the bankcruptcy action or for the debts to become statute barred.
Re statute barred the debt still stands and you may get letters every now and then, but as soon as you write back and state statute barred they are obliged to stop any further action and go away. TBH in practice this means once debts are over 6 yrs old they are effectively gone.

The info about cards blacklisting you for life is not correct as I had an old account with a company that defaulted and went to a debt collection a few years ago. I paid some off, but due to other circumstances (long story won't go into here) ended up with an amount that went statute barred (now dropped off my file so a good whils ago). I now have a new card with the same company which I pay in full each month. Only has a small balance but is a credit builder. In 14 months the last of the defaults left drops off so hope to get a mainstream card then and hope the card showing all paid up to date for a couple of years will mean my credit rating is good at that stage.

I found even settling accounts didn't seem to make much difference tbh-defaults dropping off completely seems to help more.

You may find if all the old stuff has dropped off your file you are now getting turned down because of a lack of information on credit history? Especially if you aren't on the electoral register or rent all of which count against you.

TBH you really need to get copies of your credit files to see what the situation is.

Good Luck
Ali x

RichL74

Re Card black listing - some companies do and some dont then in that case.

Personally I wouldn't chance it myself but that's me.

getting_there1

I agree with Alibobsy - you really need to check you credit file/report to see what is going on. Also, I defaulted with Cap1 some years ago and it got passed on to a DCA and remained only partially satisfied and they still issued me with a new card some years later even though the default still remains on my file.

samtoby

The_Laisy_Daisy wrote: »

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!

I recommend you try with an account which may be easier to achieve. I started with Very which is a catalogue or a subprime card such an Vanquish, Aqua or Luma - see boards for subprime but be careful!