If you have defaults, is there any way you can improve your credit rating?

MissOptimistic

Please be gentle
I was just wondering if there is any way your credit rating can be improved once defaults have been registered, other than waiting the full 6 years?

bengal-stripe

A 'settled' default is somewhat (but not a great deal) better, than one where the money is still outstanding.

matttye

Yes, get a credit card, use it responsibly and pay it off in full every month.

If you can't get a credit card, a phone contract will have a similar effect and should be easier to get.

rebm11

I have 2 phone contracts paid every month for 3 years and a HP for 3 years and this hasn't helped against the defaults...

happy_bunny_2

Not helped in what way?

Are the defaults settled?

Should be able to get a card with over 3 year old settled defaults.

matttye

rebm11 wrote: »

I have 2 phone contracts paid every month for 3 years and a HP for 3 years and this hasn't helped against the defaults...

If by "hasn't helped" you mean you can't get prime credit, that's to be expected.

The point is to maintain an active credit history so that when the defaults drop off, you can show that you've been borrowing responsibly rather than just not utilising credit at all.

elroberto

Managing the accounts you still have active well by paying on time every month does help. My credit rating was in the toilet a year ago but since I've been accepted for two (admittedly for poor credit) credit cards and have just been accepted for a bank switch. I still have two defaults showing on my credit files (though they will both drop off within 6 months) and 1 ccj (which unfortunately I'm stuck with for four more years though it is settled).

Stuh

I have 2 defaults settled due to drop off in 2014 and 2 active again due to go this year, had a mobile contract for 4 years never missed, mortgage for 6 years never missed, vanquis card for 2.5 years never missed and my credit rating is still rubbish so to answer your question its a NO sorry!! (until they drop off that is i hope anyway!!)

grandplonker

Every time I get a new credit card or my limit increases my credit rating goes up 15-20 points.

Keep in mind credit ratings are decided by credit rating agencies (different for all 3 agencies). Lenders, however, ignore them. They look at all the info on the file automatically and decide against their own criteria. Hence, you can have an excellent credit rating and still get different results from loan applications.

Obviously it still holds some meaning, or there would be no difference between 500 and 900.