Credit File Accounts (Snapshot Included)

SpeedyBoots

Hiya folks,

Some of you may of read my other topics regarding my credit file, wanting a mortgage, that kind of thing. It seems like such a battle at the moment and with a bleak credit file like mine, I'm wondering if too much damage is done?



The Wonga and the MKDP are the ones that are being addressed at the moment, but I know the previous payday loan settled accounts do not look good and will only hinder my chances of a future mortgage, improved credit report etc.

I started off using Wonga, and then I very very very stupidly allowed my ex-girlfriend who couldn't get any credit to use my account as what I look at now as a "one stop loan shop", ruining my file in the process but at the time I didn't care, I was young and very very stupid. I think I will be learning the hard way

Just after some advice folks, your help means the world.

SB

Tixy

I'm wondering if too much damage is done?

There is nothing on your file that suggests you won't eventually be able to get a mortgage, time is a very good healer for credit files.

Realistically when are you thinking of applying for a mortgage?
What are the default dates on all the defaulted accounts?

As you realise the first priority needs to be to settle the defaults.
After that you will need to run your remaining existing credit accounts well and ensure you make all payments on time.

Then in maybe a couple of years you can review again and perhaps speak to a mortgage broker about your chances of being accepted for a mortgage based on what your files look like at that point (assuming you have a deposit saved up by then).

SpeedyBoots

Hello Tixy......Thankyou for your reply

The dates of the defaults are:

MKDP - £424 - April 2010
Wonga - £702 - November 2012

I have today sent offers of repayment to both companies, which will take time to pay off but will see what they say. I was hoping to start looking at a mortgage some time in 2014 but it looks less and less likely with my credit history to be honest

SpeedyBoots

Further to this, I was wondering if the amount of accounts on my file is the issue aswell as the actual defaults or is it just the defaults, or both?

Sorry for the questions folks.

jonesMUFCforever

You can have as many accounts as you want but ONE default could mess up any mortgage application or any other credit application for that matter.
I see that you have made offers to repay is this the whole amount or a sum you think they will accept?

Those pay day loans do a lot more damage than you think when they have been paid off but a default as well - well don't build up your hopes for at least the next 12 months.

SpeedyBoots

Thanks for the reply Jones,

It's for monthly repayments, will see what they say. I agree about the next 12 month thing, in which case I realize I need to ensure my accounts are in good order and keep track of my spending.

SpeedyBoots

Sent the letters offering repayments on the 8th December, how long before I should send letter number two to both Wonga and MKDP?

Thrugelmir

You are looking to several years to rebuild your credit profile once the defaults are settled. Focus on saving the largest % deposit you can. As this one way of mitigating the damage.

sirwiggum

The defaults are the biggies, and by the looks of it they'll be on your account until November 2018. This is regardless of whether you pay them off tomorrow or offer a quid a week, the defaults will remain on your file.

PayDay loans might also be a bit of a red flag for potential mortgage lenders.

I'd wait until then, bit of a long haul, but use the time to save what you can.

SpeedyBoots

Just on this guys.

The defaults that are in red and are shown as DEFAULT - SATISFIED. How do we get those to become SATISFACTORY - SETTLED?

sirwiggum

SpeedyBoots wrote: »

Just on this guys.

The defaults that are in red and are shown as DEFAULT - SATISFIED. How do we get those to become SATISFACTORY - SETTLED?

The short answer, and without meaning to be flippant, is to wait out the 6 years after the date of default.

The accounts will never transition from DEFAULT to SATISFACTORY.