Advice

matthewe

Hello,

Was just after some advice.

Heres my current situation -

I have a default on my account from 1/3/13 (date added)
This was for a overdraft which was never re-paid.

I have a credit score of just below 600.

Would it be better to -
A) pay this off in full?
leave it and see if i can get the credit i want
C)Pay this off on a payment plan?

these are the options i can think of but if anyone has anythiing that wold be great.

This is the only negative thing on my credit report and really want to make this as positive as i can.

Cheers

Tixy

Hi
If you can afford to pay off in full then that will at least show the default as satisfied, which will make your file look a bit better to potential lenders.

But your ability to get credit and at what APR will be affected by this default for another 5years even once it is settled.

Is the default date of March 13 fair/reasonable? When did you stop using the overdraft account? do you know what date the overdraft was formally recalled by the bank?

matthewe

How much better would it look if i paid this off? would this make the difference between getting a mortgage and not?

i am planning on apply for the new 123 account with credit card and also a mortgage in the next few months should i still be able to get this but just with higher interest?

yes the default seems about right unfortunatly, but they are updating this with (8) every month on my credit file.

would it be an extra 6 years from the settle date before this dropped off if i did settle this or the orginal added date?

thanks in advance

tinkerbell28

6 years from the date of default.

That's going to make it incredibly hard to get a mortgage or mainstream current account.

That's madness for the sake of £600. You should pay it off asap.

You won't get the credit you want with that default so recently....there is a chance in time if you settle in full.

Tixy

It will drop off your file 6years after the original default date regardless of when you pay it.

With such a recent default I imagine you may well struggle to get the 123 account/cc with santander.

You may be able to find a mortgage lender willing to lend to you, particularly if you have a good sized % deposit although you'd likely need to use a mortgage broker as its likely to be a subprime lender rather than a mainstream lenders. If you only have a 5% or even 10% deposit then you may well struggle.

matthewe

I believe that it need to be on thier for 1 year min to then get a credit card (known for defaults, cap1 etc...) which i can then use to rebuild my credit.

How big a difference with applying with this not settled and settled would it make?

EDIT -
I have around a 20% deposit without paying off the 1200 i owe and that was what i though regarding a mortgage broker. i may just pay this off and then apply.

Will any further default occur from this i.e ccj?

Thanks for the advise

Tixy

If you pay off the overdraft then there will be no chance of them taking further action, so now you couldn't end up with a default.

How big a difference with applying with this not settled and settled would it make?

Not settled unlikely to get even subprime credit cards/mortgage.
Settled you may be able to get subprime credit cards/mortgage