Credit Rating Questions

rsjg80

Hi,

Long story short: old relationship, mixed up finances, heavily in debt, got defaults, split. That was just over three years ago.

And now to today. I have had a job for two years (I'm a teacher on top of my payscale), I have paid off all the defaults and have not applied for credit since the split.

However, as life dictates, I've been thinking of trying to get a mortgage and fully move on. I looked at Noddle and saw that all the accounts are closed but listed as Settled or Partially Settled and defaulted about 2010/11. It was suggested I get a credit card to build up my credit rating now - I applied with Aqua and was instantly declined.

As far as the world is concerned I earn 32k a year, I have no debts, I have lived and worked (on electoral role) in same place for two years and not missed any payments or anything for three years.

If I can't get a credit card what chance do I have of getting a mortgage?! I live with my partner who is also a teacher on same wages with a way better rating than me but still not perfect (missed payments years back)

I assume there is no point me doing anything til at least 2016/17 based on defaults dropping off? Is there any point adding Notes of Correction to explain (does anyone really look at these?)

I feel so low. I've worked damn hard to pay off nearly 30k in three years and it's not made any difference to my credit rating, it looks as though I will not be able to have a life for at least another 4 years+ and the whole exercise seems pointless. I'm being punished for being naive as a youngster and taking full responsibility for debts that weren't really 100% mine despite being in my name. From what I'm now reading, there wasn't even any point paying of debts as no-one cares if a default was paid or not.

Is this just life? I'm 33 soon and they way I'm feeling now I just can't be bothered with any of it. Nice depressing post for a Monday eh?!

Usa2012

Hi

Please don't despair, you've done the hardest thing paying it all off. I was in a similar boat a while back and it was soul destroying knowing even though I had tried to pay it all off, it was still affecting my life.
I tried for a vanquis and capital one card at first. After 8 months of using and paying in full I got a mainstream card with a good limit and 0% offers.
It helped to build up my credit history.
Don't apply more than 3 times in 6 months, and try the pre eligibility checker on the site to see what cards are suited to you.
Chin up and good luck. Xxx

nicp60

Hi there,
I'm also a teacher and have been in almost exactly the same position as you. I'm on 40k and can't even get an overdraft with my bank (where I've banked since I was 18) for over £200! Madness!!

I've got 2 defaults dated 2008 and 2009, although crucially I only settled the biggest one (9k) last July.

I was able to get an agreement in principle from a sub-prime lender, but only with a 20% deposit, which ended up pricing us out of the market. My best advice would be to go to London & Country when you've got your deposit etc all sorted. They were amazing with me - I sent them a copy of my credit report and the broker worked through it and looked at all our options. Martin recommends them.

I have been able to get a Capital One credit builder card, and I got that in 2010. I've also been able to get an Aqua card.

Make sure that the default dates are accurate so that they come off your file when they should, both of mine were wrong and I've had to try and sort them out.

I know it feels sh!tty to have worked your !!!!! off paying your debts and to feel like you're still being punished (that's how it feels for me, anyway), but it's so worth it!!

If your partner's credit is better, then you could always initially go for a mortgage just in their name? Or you could always contact L&C now (they're free and will call you back) and find out speculatively what your chances would be of getting a mortgage.

You-kip

Unfortunately settling defaults will make no difference in the short term of improving your credit worthiness as your defaults will be shown to other lenders until the day they drop off your file.

It's strange really if you would of went bankrupt you wouldn't have had to pay back a penny and your credit file would've been clean in 3 years, immorally wrong but true.

LeeSouthEast

You-kip wrote: »

It's strange really if you would of went bankrupt you wouldn't have had to pay back a penny and your credit file would've been clean in 3 years, immorally wrong but true.

Clear conscience, though. And the feel good factor.

nicp60

Why 3 years? Bankruptcy stays there for 6 years doesn't it?

fermi

nicp60 wrote: »

Why 3 years? Bankruptcy stays there for 6 years doesn't it?

Yes, 6 years.

Plus even after the 6 years, if asked on a mortgage/loan app etc "have you ever been declared bankrupt/insolvent", then you are obliged to disclose it.

You-kip

nicp60 wrote: »

Why 3 years? Bankruptcy stays there for 6 years doesn't it?

Because the OP has spent the last 3 years paying back their 30k.

nicp60

Ah, gotcha