Shocking credit file, ways to improve?

ChickenLady

So i have loads of defaults falling off over the next 6 or so months.

From next May(2014) my credit file will look like this:

Experian:

CCJ £257 11/2010.
CCJ £1900 09/2012

Defaults:

£105 02/2010
£41 08/2010
£86 11/2012
£120 11/2010
£300 02/2010
£200 02/2010

Late payments:
£290 6 months in arreas (currently- may default me in the mean time, had no contact from these since 2010)
£120 As above^^
£26 was 6 month in arreas but balance is now £26 so will be cleared in next month. Guessing will still be on file next year tho.

Equifax:

No CCJ's registered.

No late payments like above.

Defaults:
£105 02/2010
£41 08/2010
£86 11/2012
£120 11/2010
One in 2011 (cant remember exact amount)

I know my credit is shocking, i ignored it for a long time and now i need to sort this out and deal with it.

The good points i have are 2 x bank accounts and 1 (new) 30 day sim card which should be giving me good points once it goes on my file next month.

I dont think i can do anymore until May next year when my file goes like the above (hard to believe but its even worse atm)

So next year what do you think i can do to improve my credit?

I am not on the electoral roll, so i am going to join it in the next couple of weeks.

I do have a loan with provident as they said it goes on my credit file, which they have not done, so i think once ive paid it off ill close my account with them.

Any ideas?

Thanks

Cycrow

i think only time will really help here.

by the end of 2016, you should only have a default and CCJ remaining on your file so i think then will be the time to start looking to rebuild some credit history.

before then, i think you will struggle to get any kind of credit so there will be little you can do

Tixy

Don't borrow more from provident or any payday lenders.
These loans (even when reported on your credit file) do not increase your chances of credit with mainstream lenders.

Getting on the electoral roll is a good idea.

By next May will the CCJs show as settled on your file? Will the defaults show as settled? (thats if they are not currently fully paid off)?

Once your latest defaults and CCJs are over 3-4 years old and if paid off then you might want to try to get a subprime credit card at that point and use that and repay in full each month. That way you will have some positive credit history by the time the last CCJ has dropped off your file.

ChickenLady

The CCJ's are being paid each month, dont think they will have be settled by next year tho.

TBH with the defaults i just didnt pay them, is it worth making a payment plan with them to pay them off or just wait another 3 years?

Im not planning on needing credit but i would like the option should i ever need it in years to come.

Cheers i know this is a long term thing to make work

Will the 30 day sim make a difference? they have told me once ive made 3 payments i can upgrade to a full contract, but im not convinced i need one as of yet and cant see if making any difference on my credit file.

Cycrow

a phone contract wil give you some history, and some is better than none.

but it'll be of only limited help. Simply waiting then going for a subprime credit card would be your best bet.

for paying of the defaults, are they actually chasing you for the debts ?
you could pay of the last default, £86 11/2012
get that marked as settled

Tixy

ChickenLady wrote: »

TBH with the defaults i just didnt pay them, is it worth making a payment plan with them to pay them off or just wait another 3 years?

Are they currently hassling you? Depends on the risk of them obtaining CCJs against you at a later point which will screw your file up for even longer.

ChickenLady wrote: »

Will the 30 day sim make a difference? they have told me once ive made 3 payments i can upgrade to a full contract, but im not convinced i need one as of yet and cant see if making any difference on my credit file.

In the short term the 30day sim isn't likely to make much difference. Over a longer term it will demonstrate handling new credit responsibly. Can see the point in upgrading to be tied in to a full longer term contract (not from a credit file point of view anyway).

Thrugelmir

ChickenLady wrote: »

Im not planning on needing credit but i would like the option should i ever need it in years to come.

Learn from your experience. Manage your finances pro-actively i.e. save before you spend! You are going to have to battle hard to restore a good credit record. So don't let the opportunity slip.

ChickenLady

No im not being chased by any of them.

I think if it got to the point of a CCJ i would try and find the money to pay it before it went to court since they are not massive amounts of money.

I think i will write to the 2012 default and make an arrangement to pay.

I dont want to go down the debt route again! will work on my file and not screw it up again

Thanks for the advice!