Defaulted accounts on credit file

helencal80

Hi everyone,


Sorry if this question has been asked already!


I have a copy of my credit report, there are several defaulted accounts.


As an example:


Account 1: default date Feb 2013
Account 2: default date Oct 2008


My question is this:


If a defaulted account drops off your credit file after 6 years, would I be better off paying the newly defaulted accounts first? It's possible the older ones will have dropped off by the time they are paid. They are all catalogue or mobile phone with 2 credit cards. None are council tax or other high priority debts.


Thank you.

matttye

Do you mean "better off" in terms of which is better for your credit file? If so, both paid and unpaid defaults are likely to have a highly negative effect on your credit file. You're unlikely to get mainstream credit until the defaults drop off completely.

I would pay off the accounts charging the most interest first, or the ones for which you can't reach a repayment agreement. You don't want to get a CCJ as well.

helencal80

Thanks matttye.


Is there a way I can find out what interest I am being charged on each account? Or will I need to write to each individual creditor?

happy_bunny_2

You will need to get a statement of account from each creditor.

Or see if the balance reported on your credit file goes down each month by the full amount you pay. If so, no interest is being charged.

helencal80

Thanks happy_bunny


I don't think the balance has increased on any of them since my previous credit report (last year). So when I start making payments I will check regularly.