Very Poor Credit rating, options?

Tronn

I've run the Bad Credit Card checker on the site and have come up with 0% on every card. I do have several defaults due to losing various jobs over the last few years, and having to borrow money from family etc.
I am now in a position where I am earning good money and would like to rebuild my credit rating - notably to look at getting a Mortgage in 2015.

What are my best steps at the moment? It sounds like I won't be accepted by any Credit Card companies - I simply want a card to improve my credit rating and not go down that other route anymore!

Dovah_diva

Have you got a current account? Is there regular money going in and out? Are you managing it well? Have you contacted your creditors? Are you still defaulting on payments or have you entered in a DMP or similar?

Best way to rebuild credit is to:

a) Sort out current debt. Make agreements and stick to them
b) Get the best bank account you can and manage it well
c) Eventually get a high interest credit card, use it for a couple of very small purchases and pay it off in full each month.
d) Save, save, save, save. If you want a mortgage and have a poor credit history, the more you can save the more likely a mortgage offer will be made. However, you have to pay your creditors first, assuming you haven't done so already.

Bear in mind that defaults stay on your credit file for six years, so a mortgage in two years sounds unlikely.

Tronn

Hmm, even if I have a decent income and can secure a decent deposit (say up to 50% of the mortgage) would that still not be enough due to defaults?

I do have a current account and I've not exceeded any limits in it - I've been with the same bank for over 15 years.

Cycrow

The bigger deposit you can get, the lesser the impact the defaults will have.

But they can still cause problems, are they all at least settled?