When settled defaults disappear - what next?

xKayx

I have 3 defaults from 2009 which have all been settled in 2011. Since 2011 I have kept all credit agreements such as my catalogue, phone contract, car finance etc up to date and paid on time.

My credit report is still very poor which is expected but I was wondering when the defaults drop off will my credit report still be very poor and I will then have to rebuild it from there or will the 3 years of up to date credit agreements be taken into account?

Or is this something I will never know until that time comes

antonic

Defaults drop off 6 years after occurring.

So if you got them in 2009 , they should drop off in 2015.

The only way you will know when they have been removed, is by checking your credit file with all 3 Credit Reference Agencies.

xKayx

antonic wrote: »

Defaults drop off 6 years after occurring.

So if you got them in 2009 , they should drop off in 2015.

The only way you will know when they have been removed, is by checking your credit file with all 3 Credit Reference Agencies.

Thanks for your reply although I don't think you understood my question. I meant after the defaults drop off does your credit file instantly improve and go from say very poor to fair for example because of keeping other credit agreements up to date for years? Or does it stay at very poor and builds up from whatever accounts you keep up to date from there?

MrSilk

It will be better, once they disappear they disappear forever, no trace

So as long as you pay everything on time before they drop off, once they drop off your file will be a lot better

antonic

I now understand what you mean !

The way to improve your rating would be to take a credit card/ credit agreement and show that you can manage it correctly.

(If its a credit card pay it in full each month/ if its a credit agreement pay on the due date).

Buzby

It is the defaults that provide the stranglehold on your file. As soon as these become invisible to lenders, your ability to get products increases immediately.

Your 'score' is irrelevant - this is simply a product the CRA's use to sell your data back to those who created it!

rizla_king

xKayx wrote: »

My credit report is still very poor which is expected but I was wondering when the defaults drop off will my credit report still be very poor and I will then have to rebuild it from there or will the 3 years of up to date credit agreements be taken into account?

When the defaults drop off lenders will assess your report based on what is still there. If that is 3 years worth of reliable payments, then yes of course that will have a very positive impact.

Utseya123

Whatever has happened in the past is in the past. If your recent credit history shows no defaults and demonstrates that all your obligations are paid when due, you face no risk in your credit report.