Advice Please :(

tracey_02

Hoping someone can give me a bit of advice if possible. I was a bit silly with money when I was a student and ran up debt with various store cards, a credit card and also a contract phone. I left uni and got a job for a while and then the company went under and I was made redundant at which point my accounts began to default as I was job hunting and failinf miserably. I also had letters come to my parents house for a student endowment from the Student Loans Company and my dad being my dad duly binned these instead of passing them on and I acquired a lovely Scottish Decree for the sum!

I found work eventually and have paid off all of the outstanding amounts, the last was paid off in full in August of last year. I am up to date with all my bills, am registered on the electoral roll, have a contract phone for the past two years and a credit building credit card.

I would like to get a mortgage with my boyfriend but have discovered through Experian that I obviously have a very low credit rating of 338 and would not be accepted.

My defaults are as follows;

Scottish Decree 24/10/2008
RBS credit card 6/5/2009
Aktiv Kapital 20/10/2008
Aktiv Kapital 24/01/2008
Lowell Portfolio 9/3/2008

I think I would expect these to come off my credit file 2014/2015 but when will my rating begin to improve? looing at my credit file everything is good or excellent minus payment history which is obviously very poor. Will my rating gradually increase in the meantime or is it at a standstill until the defaults fall off my file? And will it automatically increase when they do?

Many Apologies I am quite naive with some of this!

Tixy

It will be hard to get a mortgage whilst these are still on your file.

Are they all shown as being settled?

Having newer accounts showing proper management of credit now will help over time.

If you do want to try to get a mortgage before these drop off your file then you would need to talk to a mortgage broker to see if they think it would be possible, but even if they think someone would be prepared to accept you for a mortgage you will not get the best high street mortgage rates and would need a higher deposit than usual.

But if you can wait until they all drop off your file and maintain the current credit agreements then you will then stand a good chance of getting a decent mortgage. No potential lender will be able to see any of these past credit problems.

tracey_02

Hi Tixy

Thanks for this. They all show as being settled on my file. My other credit accounts are all showing as excellent so I am hoping this will hold me in good stead to boost my rating in the future!

Will they not be able to see that I have had previous defaults at all after 6 years?

debtfreesoonihope2015

I got an rbs mortgage with 2 defaults I was told they only check 3 years back... Xxx

tracey_02

Aww that's great! I am worried about applying and being declined. I think I am going to continue to save for a while yet