Even after settled defaults have gone still can't get credit

carrot-cake_2

My partner and I both had settled defaults on our credit report from when my partner was made redundant and I was pregnant with my second child. So both not working alot of our debts defaulted.

For the past few years we have both been in good secure jobs and have kept all of our credit obligations up to date without any missed payments. I was positive that once all our defaults dropped off that that would be a fresh start and we would be able to get a mortgage and move but now I'm not so sure.

My partners final default dropped off this year and mine still have a few years to go. I thought that this would have made a difference but his credit report is still showing him to be a warning to companies and unlikely to be granted credit. He has applied for car finance and a credit card and both have been declined.

This makes me think that after years of me keeping everything payed and up to date, in 2016 when my defaults drop off we will still be in the same situation and unable to get a mortgage finally.

If anyone has any advice it would be much appreciated

Candyapple

What 'warning' exactly is your partner's credit file showing? Is he on the electoral roll? Does he have any missed payments? How many credit accounts does he have open and for how many years?

Does he have a good level of income? What is his debt to available credit ratio? Have you checked that the defaults on his file have been removed from all 3 CRA's?

izools

If you are financially linked - i.e. if you hold any joint accounts, then when he applies for credit - even just in his name only - the lender will see your bad credit and use that when making up their mind.

carrot-cake_2

Hi on my partners noddle account its coming up as 1/5 which says he is unlikely to be granted credit.

His electoral roll is up to date.

He has no missed payments.

He has 8 credit agreements open, thats 4 credit cards, car finance (joint with me), a current account, a phone account and shoppacheck. The oldest is probably 18 months old.

He has no CCJ's and hasn't been bankrupt.

I can see now that it probably has something to do with him being linked to me and the fact that even thought he has kept his credit agreements up to date it has only been for 18 months.

Also he could do with paying off and getting rid of some credit cards.

His overall debts is around £1500 between all credit agreements. He earns £19000 a year.

I will check the other credit companies to see if the defaults has been removed from them.

gb12345

What are the credit limits (not the outstanding balances) of his credit cards?

carrot-cake_2

Hi one is 1000 one is 500 and two are 250.

jacobtheamish

carrot-cake wrote: »

He has 8 credit agreements open, thats 4 credit cards, car finance (joint with me), a current account, a phone account and shoppacheck. The oldest is probably 18 months old.

Shoppacheck? I do believe lenders are not too keen on seeing payday loan companies on credit files, it is a sign of poor money management.

CLAPTON

make a fresh start

clear all debts as soon as possible

use the CC regularly but pay in full each month

start to save so you don't need any credit (except a mortgage one day) and of course that you have a mortgage deposit

check all three of the credit agencies and see the full details on both of you

dunstonh

Mainstream lenders do not like payday loan companies (or any other type of these quick, high interest loans). They are considered an option used by the desperate. I know of mortgage applications that have been declined even with criteria that would have seen them accepted had a payday lender not been on the list.

If you are trying to repair your credit, you should avoid such companies.

ALIBOBSY

Dunston do you know out of interest how long these payday loans stay on someones credit file, is it 6 years after settlement? Also do the banks disregard the issue say 2 years after pay off, or are you screwed for a mortgage until it drops off completely?

Ali x

Thrugelmir

Clear your debts. Cut up unnecessary cards etc. Start saving through Nationwide's Save to Buy scheme. The combination of these events will clearly show to a potential lender that you have learnt from your previous mistakes.