How long before settled default becomes less important

devlopands

I have 2 defaults on my credit file currently:

1. A defaulted loan for £1750 - defaulted in 2012 and settled in 2013
2. A defaulted credit card for £3500 - defaulted in 2013 and currently not settled

I am planning on having the credit card settled in the next few months.

Additionally on my credit file i have the following with perfect records:

Current account - 3 years
Credit card with limit of 800 - 3 years
Mobile phone - 4 years
A couple of other utilities such as bt

My question is after settling the credit card default mentioned above - how long before that and the other default will become less important to lenders?

Additionally I will be starting car finance payments next month over a 4 year term - assuming this record will also be kept clean.
Currently i am only offered sub prime car finance/loans etc.

rising_from_the_ashes

Defaults stay on your file for 6 years so you're looking at 2018 and 2019 I'm afraid

Some lenders will automatically not lend to anyone with a default still showing - even if it's after say 5.5 years & for £30 - others won't worry as much as time passes.

eg I got a mortgage with a 2 yo default with 1 lender and was then turned down by another for the same default 3 years later!

It really depends on the lender, the amount needed, what it's for, whether you're putting in money too etc

devlopands

Even if all defaults are settled then they will be looked upon the same then?

happy_bunny_2

Settled will look better than not settled when applying for credit.