will wiping out my debt get me a good credit rating?

avx

Hi all....please advise...

I've 14k of debts on loan and crefit cards....some are on a payment plan....I checked my rating on noddle and it was 1/5. I've never had any ccj's or court judgements for missed payments

I'm getting a loan from a relative to wipe these out and close the accounts.

But will my credit rating rise as I am looking to get a mortgage. ..

Apologies if I'm asking a dopey question

Thanks!

Larac

It is likely that if you are on a payment plan that your creditors will have issued a default notice, which will appear on your credit file. Default notices will remain on your credit file for six years from the date the default was issued. If you have defaults on your credit file, then you will likely find it difficult to get a mortgage. You may well need to wait until the defaults clear before applying for a mortgage.

avx

As far as I know, no default notice was given. None was viewed on Noddle credit report

YorkshireBoy

Are the accounts in question marked with an 'arrangement to pay'? If so, these will remain for between 3-6 years depending on whether the accounts are closed or not once settled.

Whilst not as bad as defaults or CCjs, but better than missed payments, APs will put many lenders off doing business with you.

_Andy_

"But will my credit rating rise as I am looking to get a mortgage. .."

not as such, no. As your adverse credit history is still there on your records. This isn't 'wiped out'

Thrugelmir

avx wrote: »

I'm getting a loan from a relative to wipe these out and close the accounts.

But will my credit rating rise as I am looking to get a mortgage. ..

Not for some time.

However taking a few steps in the right direction is the way forward. Otherwise you'll end up going nowhere fast.