Improving Credit Rating with Default on File

WifeandMummy

Sorry... I previously posted this on what I thought was a new thread and then realised I had replied on someone elses post - so I have deleted that post (apologies) anyway here is my question...

Hi, both me and my husband are trying to improve our credit ratings. My husband's is very poor with noddle scoring him 1/5 he has a default on his file from March 2011 so still has 4 years left. Is it likely this score will improve at all even with the default on his account. We have recently paid a loan off early thanks to a successful PPI claim and we are over paying other debts and keeping all other accounts upto date. Is there anything else he can do?

Thanks in advance x

MoneySaverLog

Unlikely to improve from 1/5 whilst the default remains. But any score from Call Credit is just their view. They do not lend money, lenders have their own scoring systems. But saying that lenders will usually see the default (satisfied or not) and run a mile.

It's going to be a waiting game until it drops off I'm afraid.

WifeandMummy

Thanks for the reply. I thought as much Oh well hindsight is such a wonderful thing hey x

MoneySaverLog

Give it time, it will heal. Been there done that got the t-shirt, so there is a way out. You're doing the right thing by paying the others off as that will be positive data that will show once the defaults gone.

WifeandMummy

Thank you, that's reassuring. Some days feel positive, other days feel rubbish. We will get there though i'm sure. Lots of lovely people on here to help along the way x

matttye

If he can get a sub-prime credit card, borrow a little on it and repay in full each month, that will greatly improve his credit history so that when the defaults drop off he'll at least have something positive on his credit files recently.

From what I've seen people seem to have most success getting a CapitalOne card, and indeed that's what I have to repair my bad history.

Would only advise applying for one or, at most two, for now. If they both fail then wait a year and try again.

MoneySaverLog

It's ironic take out further credit to improve ones creditworthiness. Only do the previous suggestion if you're going to pay back in full each month though

WifeandMummy

Thank you, I actually have just started doing what you have suggested to improve my own credit rating and today used my card (which is with capital one) to put diesel in my car. I already have the money set aside to pay it off

Hubs mentioned trying to get a card himself to do the same but we didn't know if applying for new credit under his circumstances would be a good idea. Its something to think about thought.

Also if you pay the default off early does it come off your account or does it still stay on for 6 years? x

MoneySaverLog

Worth a try if you settle the default it will still show up for the 6 years though.

WifeandMummy

Thats what I thought but a friend seems to think you can request that its removed when you settle? its all very confusing lol x

MoneySaverLog

You could try negotiating with the creditor, doubt it will work though as it's a true reflection of what was.