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Bad credit account on file

I have an account on my experian file. It was a loan which was settled in July 2011. Prior to being paid off I was making the regular required payments for 2 1/2 years. Prior to this I was behind and therefore for 1-2 years I have 6's shown.

Unfortunately due to the rules this account will not disappear until 2017. In some ways I would have been better off just not paying it at all and then it would have come off in a couple of years.

Just wondering how this will affect my application in 6-12 months time.

Thanks

Comments

  • Dave_Ham
    Dave_Ham Posts: 6,045 Forumite
    Tenth Anniversary Combo Breaker
    Did it default?

    If so there will be a date in the default column on Experian...
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • leereni
    leereni Posts: 377 Forumite
    No, didn't default so technically it's not a default and doesn't mention it in the column.

    However, lots of 6's as I said. Doesnt look very pleasing to the eye....
  • Dave_Ham
    Dave_Ham Posts: 6,045 Forumite
    Tenth Anniversary Combo Breaker
    So long as you stay on top of any credit/bills now, by the time you are looking and with a fair deposit you should be fine.

    Would have been a lot harder if it had been defaulted...
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • leereni
    leereni Posts: 377 Forumite
    The reason why I'm suggesting it's similar to a default is a default is technically a breach of contract which is what happened with this account until I brought it back up to date.
  • Dave_Ham
    Dave_Ham Posts: 6,045 Forumite
    Tenth Anniversary Combo Breaker
    A default is a huge issue, whilst yours is not perfect it is just bad history.

    So long as you have some recent history, this will be mitigated.
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • leereni
    leereni Posts: 377 Forumite
    BTW what would you say is a fair deposit for say a fla worth £150000.

    I earn £40000 per year, GF earns £10000 per year. She as a very good credit rating.

    One or two late payments on other accounts a couple of years ago.
  • leereni
    leereni Posts: 377 Forumite
    Oh and do you think Halifax would touch me. They wouldn't even give me a credit card several months ago.

    Please bare in mind I'm looking at applying in about 9months to a year.
  • Dave_Ham
    Dave_Ham Posts: 6,045 Forumite
    Tenth Anniversary Combo Breaker
    If you can get to 15% that would be great.

    If the loan with bad payment history was with Halifax then not a good selection...

    Could be ok, although difficult to give opinion without full sight of credit file.
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • leereni
    leereni Posts: 377 Forumite
    Yes thanks for your input.

    Loan was with lloydstsb which are almost the same bank. Think I'll need to try a different one.
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