Default affecting credit rating?

carloshoodios

Hi all,

I'll start with a brief background of my situation...

1. Went to law school, borrowed £25,000 from Natwest for the
pleasure
2. Finished law school, didn't want to be a lawyer any more
3. Natwest gave me an interest break while I retrained as a teacher
4. Natwest then wanted £508 per month repayments for 10 years
5. I'm a teacher, that isn't happening...ever...
6. I default every month on this and have done for about a year and a
half
7. My credit rating, according to Noddle, is 1/5

I was just wondering how long it was going to keep affecting me? I pay £20 a month towards the account but apparently that still counts as a default because it isn't the full amount.

I recently secured credit for a new car from Barclays for £5,000...not sure how! I have no other defaults or missed payments on my file.

If you need any more info, just ask

Thanks!

Jason_Bourne_2

You should have stayed in law, couple of weeks work and you'd be debt free

The default will drop off 6 years from default date.

If you're only paying £20 per month there's a good chance the debt will be sold on. If this happens, save, save, save. You probably be able to settle the debt for around 40%.

You will probably find that Natwest report to a different credit agency to Barclays, the default may not have been visible when Barclays searched you.

fermi

What does it show on your credit files? Does it actually say "default".

If actually defaulted, there will be an initial "default date" recorded. The default, account, payments history, every trace of the account drops off your credit file 6 years from that default date.

See: How long do accounts/defaults remain on your credit file?

carloshoodios

Jason_Bourne wrote: »

You should have stayed in law, couple of weeks work and you'd be debt free

I sometimes wish I had, believe me haha! :P

Ok cool, thanks for your help guys! Merry Christmas!

sirwiggum

Although the account may show default every month, it is only the initial default date that is important.

After 6 years the account is removed - you'll have 4.5 years left.

Interesting that you still managed to get car finance though! Was the APR higher than average, if you don't mind me asking?