Defaults and credit file

steven61 · 18 February 2014 at 7:53PM

Hi

I am after some advise. I got into some financial problems when my relatinship ended years ago and as a result I defaulted on all my credit cards and loan I had at the time.

All were defaulted passed to collection agencies and I have been paying since. Out of the 7 I defaulted on all are almost off my credit report and all will be over the 6 years come July.

I am now in a much better financial situation and wanted to know how long its likely to be after all these drop off before my credit file is looking healthy.

I took advise and got a poor credit credit card and have had this for 4 years and used it wisely and as a result am now a gold member and have maximum credit. I also have a mortgage and two credit agreements with T Mobile and BT which are up to date as well as a bank account which is run in credit.

I am wonder how long after all the defaults have gone and given I have taken other steps to improve my rating would I have to wait to perhaps change my mortgage or try for a loan etc.

Any help would be appreciated.

Tixy · 18 February 2014 at 9:13PM

Hi
Once the defaults have gone from your file no future potential lenders will be able to tell they ever existed. They will appraise only what is on your file at the date they perform a credit search.
If all your remaining credit accounts are run well then that is what they will assess.

If you still owe on these debts at the point you applied for a mortgage/new credit then you would still need to declare that you owed the money in any credit application which obviously would likely be taken in to account when they are assessing affordability etc.

jamesd · 18 February 2014 at 9:41PM

You've done well! Once they are gone all that will be left is your more recent good history and by starting on that four years ago you've set yourself up nicely.