Default on Credit Report

WifeandMummy

Hi,

After watching Martin's money show last night it encouraged me and my husband to both look at our credit files. I have just signed husband up to Noddle and its showing that he has been defaulting on a Lloyds TSB debt for the past three years. Hubs was surprised as this debt was sold to Wescott and he has never missed a payment with them and he is reducing the balance every month with the payments he makes. Is it right that it would still show up like this, we assumed it would say wescott and be up to date? sorry I don't really know how this works? xxx

fermi

It is normal. Once you have originally defaulted, the monthly status codes stay as a "D". No matter what you are paying every month. It's not a new default each month, just a status update on the original default.

The balance owed should be be shown as gradually reducing, but apart from that the only change will be when the account is finally settled.

WifeandMummy

Thank you for the reply, thank goodness we looked as we had no idea! Everything else on husbands noddle file is fine but his score is 1/5 which is obviously the default. Think we will prioritise this debt! Thank you again x

WifeandMummy

Also, how long will the default stay on his record for? will it be 6 years from the balance being settled? xx

fermi

No. 6 years from the initial default date.

Then the default and all trace of the account is removed.

*DramaQueen*

It'll be 6 years from the date the default was first registered. So as you said he's been paying it off for the last 3 years it should dissapear in under another 3. Or maybe a bit less depending on what month it was registered.

WifeandMummy

Thank you, so to clarify when the debt was sold to wescott thats the date it defaulted? I am so sorry if i'm asking silly questions. Just trying to get my head round it xx

fermi

WifeandMummy wrote: »

Thank you, so to clarify when the debt was sold to wescott thats the date it defaulted? I am so sorry if i'm asking silly questions. Just trying to get my head round it xx

Not necessarily.

There should be an actual "default date" listed on the credit report entry.

WifeandMummy

Yes, thank you. I just found it! Is there anything he can do to improve his credit rating with the default still on? xx

*DramaQueen*

Has he tried applying for a capital once card? I tried Aqua (i think!) and got declined but a month or so later tried capital one and got accepted.

I've got 3 defaults, 2 on settled accounts and one through wescott which i'm still paying off, from the beginning of last year. So might be worth a shot?