Finally debt free, but now I need to repair credit rating

philbw

Backstory: I lost my job back in 2002 and defaulted on a credit card (Cahoot) and a loan (MBNA). I was unemployed for 9 months, and in that time the debts were passed on to collection agancies. I made no payments on either debt until I started in a new job in July 2003... the agencies kept calling every 3 months to raise payments (and stupidly i agreed). I couldn't afford to say in the job I had (and loved) because of the rising payments, so I moved into higher-paying job that I hated in order to get the collectors off my back. A year (2005) into the new job Barclays offered me a loan (pre-approved via online banking). I took up the offer and paid off the collection agencies...

Flash-forward to today - I've paid off my Barclays loan 3 years early and apart from a mobile contract I have no debts other than the usual household bills. I shop alot online and as such I was looking for a credit card to use (to be paid off every month) for more security when shopping on websites. I first approached my bank, who turned me down. So I applied for a Vanquis credit card which I hoped would also help me rebuild my credit rating - guess what?? Even Vanquis turned me down!

I have subscribed to Experian in the past, and I thought my credit report was sorted out. I had contacted all lenders so they could update details etc, and everything looked (to me) OK. But the refusal letter from Vanquis states thay had checked my credit rating through Experian and I had "failed" the check..! I re-subscribed yesterday and looking at my report the only thing I can see the two defaults showing on the report. BUT - I have also changed address last summer (moved out of parents to my own flat). The new address is showing as a linked address in my report, but the electoral roll shows only my previous address...

There is also a default showing for Vodafone Ex Singlepoint debt for £55 - but the only dealings I've had with Singlepoint was a mobile contract from before 2001 which was closed early and paid in full. I have never been contacted about the debt, but have no proof it was paid either...

Anyone have any ideas on how best to proceed with re-building my credit? I eventually want to be in a position where I can get a mortgage and buy a property rather than rent.

Spendi

you could start with querying the vodaphone entry with vodaphone and are the two defults marked as satisfied ? they should be if they have been paid off in full - contact those lenders as well to get your file updated.

The electoral roll wont help matters either, ring your local council for a form to be put on it asap !

philbw

Spendi wrote: »

you could start with querying the vodaphone entry with vodaphone and are the two defults marked as satisfied ? they should be if they have been paid off in full - contact those lenders as well to get your file updated.

The electoral roll wont help matters either, ring your local council for a form to be put on it asap !

I am on the electoral roll in my new address - forms were filled in when I moved in, and I recieved a polling card in the last round of voting... The two defaults state CURRENT BALANCE: Satisfied, but under STATUS HISTORY it shows an 8 (which means default)

CLAPTON

I'm afraid that 'only' two defaults are only marginally better than say 'only' two CCJs.
Maybe your best bet is some sort of store card and/or simply wait a bit so that the singlepoint default drops off the report (6 years) and you are shown as being on the electoral roll.


As far as mortgage is concerned concentrate on saving as big a deposit as possible.

wyebird

Check the vodafone one. I had a closed mobile account with single point which never got marked as such. It took me all sorts of trouble to get it closed when Vodafone took them over. Eventually it was sorted, but it left a 2 on my Experian record, which I didn't know about until this year when I began to concern myself with such things!

shoeaddict

Hi philbw. Sadly haven't got any advice to add, as I am still a DFW, but just wanted to say congrats on clearing your debts. It's reading stories like yours that give me motivation - so thanks!

sammy115

There is a lot of info on defaults on https://www.consumeractiongroup.co.uk.

One of the threads deals with the understanding that a creditor has no right to carry on reporting a default once a debt has been paid in full.

Try this link and have a look around

http://www.consumeractiongroup.co.uk/forum/data-protection-default-issues/

philbw

I've been on the phone to Vodafone (I sent an email via the website first). Apparently Vodafone have no idea what the account is as their records show everything is up to date, the advice was to get my credit report from Equifax and email it them!!