Lots and lots of defaults...

michellegriffiths87

Hey, the title pretty much says it all. I'm fairly new to the whole credit report thing.

Recently I signed up to noddle credit report as I'm hoping to buy a house with my father in about a year. It showed that my credit rating was 530. This is because I had been defaulting on a mobile contract from 2 years ago! Needless to say, due to my own stupidity I refused to pay it for 2 years and carried on and that's how it happened.

I'm hoping that there is a way I can dig my way out of this mess within a year. I've now settled the debt which was £163. My other accounts are all paid on time. Recently added myself to the electoral roll. If I improved my credit score in the next year up to 650+ then is it possible that mortgage companies will ignore 2 years of defaults? Do they look at the amount of debt or the amount of defaults?

shortcrust

Firstly, ignore the credit scores! They're a con and a waste of money. The numbers don't mean anything to lenders as lenders don't see them. They all have their own criteria and they're all different. Look at the detail of your report instead - lenders will consider every aspect of your file, so both defaults and debts will matter.

I suspect a three year old default and the fact that you're only just one the electoral roll may rule out the cheapest lenders for a mortgage in a years time, but I suspect there'll be other, more expensive options.

Just to add, you've not got two years of defaults - you've got one default from two years ago. Noodle just makes it look like lots of repeated defaults.

michellegriffiths87

Oh I see! YAY! It's just 1 default and not 24! lol! Cause I saw a default against each month I thought they were all separate defaults! Hahaha! That's made me feel a lot more better :-D. Thanks. As long as I'm not completely out of getting a mortgage then I'm happy.

I have a feeling this default may of been why I had to go to a broker to get a loan for my car. Now that the default is settled then I should just keep up my other payments, keep saving a deposit and hope for the best. Thanks alot :-)

Tixy

A default on your file will mean that you will probably struggle with some of the mainstream lenders.

But if you have a decent size deposit* and everything else is positive aside from that 1 default then you will probably find some lenders will be willing to consider you.

*e.g. 20% or so

michellegriffiths87

I'm considering the shared ownership scheme. I've already got 8k deposit. Looking to double that or more in a year. I'm quite lucky I can save so much at the moment. I live with my dad and his wages cover all the bills so what ever I earn on top will go towards the deposit. Hopefully if we get enough then we could get a small mortgage. :-)