two defaults about to come off, will my credit score jump up?

Poorcouple

Hi All,

One last question, I think!

I have two defaults on my record which are due to come off within 8 weeks. Once they do, should I expect my credit score to jump up?
I have 3 credit cards and a store card at the moment (total debt around £5k) which I am paying a little over minimum payments on. I was hoping for a loan to cover these, so I can close my higher interest cards. I have been refused withint he last 6 months, but once these 2 defaults come off, will my chances instantly increase?

Tixy

Don't worry about your score. It will very likely increase but no lender see that score, they look at the data on your report.

If those are the only 2 defaults you have, and you don't have any other big negatives on your file after that (bankruptcy / CCJs/ IVA etc) then you ability to get credit is likely to improve significantly once the defaults no longer show.

But any potential lender will consider other factors when making a lending decision, its just that you are less likely to be declined based on your credit history (but might still be refused due to perceived afforability etc).

Poorcouple

I was using the term 'credit score' as a generic label for my chances of credit acceptance, (the overall picture) rather than the meaningless score given by Credit Expert.
I do have a bankruptcy oredr against me, but this over 6 years old and doesnt show on my credit report. Will that still have a detriment to my current chances of credit?

Tixy

It should not for unsecured consumer credit. If any lender asks about previous bankruptcy then it could, but generally unsecured lenders don't ask.

izools

Agreed. I've previously been bankrupt as well and the only lender who I know of who asks whether you've ever been bankrupt when applying for something other than a mortgage is RBS group.

Still, Yorkshire Building Society happily approved me for an 85% mortgage last year eyes wide open knowing I'd been bankrupt four years prior, so even then it isn't always a big hurdle.

Nationwide's policy is even more lax, they only ask that you've been discharged at least a year!

The_Boss

Poorcouple wrote: »

I was using the term 'credit score' as a generic label for my chances of credit acceptance, (the overall picture) rather than the meaningless score given by Credit Expert.
I do have a bankruptcy oredr against me, but this over 6 years old and doesnt show on my credit report. Will that still have a detriment to my current chances of credit?

Your likeliness of getting credit will increase. Unless you are now unemployed, have a low salary or have just started a new job.

tinkerbell28

I don't get it.

Previously been bankrupt, which has now dropped off. Two defaults. I'm presuming these are an incorrect entry linked to the BR, so falling off a bit late, as opposed to new ones.

5k of high debt on cards, which you want to refinance to pay off. Have you learnt anything?

Poorcouple

tinkerbell28 wrote: »

I don't get it.

Previously been bankrupt, which has now dropped off. Two defaults. I'm presuming these are an incorrect entry linked to the BR, so falling off a bit late, as opposed to new ones.

5k of high debt on cards, which you want to refinance to pay off. Have you learnt anything?

Yes, I have. I know it doesn't look great but my partner had some serious and urgent debt which is not linked to mine in any way. We have used my credit cards to offset spending while we sort out her debts. Her debts no longer exist, so we're working solely on the reduction of my debts.

My debts are manageable between us, without much bother, but I'd still rather get a better interest card to balance transfer, or even a lower rate loan.

Previously being bankrupt has taught me to be more careful with my finances. I am being a lot more careful, but you can't always predict when you will need extra money. (We had 2 cars suffer major mechanical faults, in the last 12 months...costing us £4000 ish)

Previous bankruptcy doesn't mean you should never get credit again, just that you should recognise when it's be becoming a problem.

To reiterate, I ain't looking for a loan/credit card to increase my debt. And my debt is in no way unmanageable. Purely,I wish to take advantage of a better interest rate!

Edit: my current credit is not maxed out. I have around £2000 available credit.

You-kip

Poorcouple wrote: »

Yes, I have. I know it doesn't look great but my partner had some serious and urgent debt which is not linked to mine in any way. We have used my credit cards to offset spending while we sort out her debts. Her debts no longer exist, so we're working solely on the reduction of my debts.

My debts are manageable between us, without much bother, but I'd still rather get a better interest card to balance transfer, or even a lower rate loan.

Previously being bankrupt has taught me to be more careful with my finances. I am being a lot more careful, but you can't always predict when you will need extra money. (We had 2 cars suffer major mechanical faults, in the last 12 months...costing us £4000 ish)

Previous bankruptcy doesn't mean you should never get credit again, just that you should recognise when it's be becoming a problem.

To reiterate, I ain't looking for a loan/credit card to increase my debt. And my debt is in no way unmanageable. Purely,I wish to take advantage of a better interest rate!

Edit: my current credit is not maxed out. I have around £2000 available credit.

Once your defaults come off your file and the rest of it has no Late/missed payments or any adverse then I'm sure you'll get a better interest rate.

izools

Poorcouple wrote: »

Previous bankruptcy doesn't mean you should never get credit again, just that you should recognise when it's be becoming a problem

Couldn't have said it better myself. Ignore the judgmental types on here.

Thrugelmir

Poorcouple wrote: »

but once these 2 defaults come off, will my chances instantly increase?

Your existing credit facilities / balances are far more likely to be issue.

So better to be upfront with the purpose of the new loan and stick to your word as well.