Defaults, late payments and fairly poor credit score

Castlehill03

Looking for some advise! Was horrified to check my credit experia and see a score of 471 and a fairly poor status.

Looking for advise how to improve this as quick as possible. Due to personal circumstances over the last year I fell by the way side and didn't pay my credit cards on time which resulted in 3 defaults against my credit cards...2 have since been settled and the final one I am working to pay off.

I have a mortgage which I have never failed on and I earn in excess of £45k a year, currently have a loan of £5000 and another credit card with £3000.

Can you please confirm how long it would take to get my credit score back to good?
Also can anyone tell me how long it takes to increase your credit score by 100 points?

Thrugelmir

Pay your debts on time. Time is the only healer sometimes.

You defaulted so this will impact your credit file.

willLeeds

They will fall off in 6 years, until then there is nothing you can do except keep up with payments. I learned the hard way.

CreditCrunchie

Being new in this forum it shocks me how many holier than thou people there are! Honestly if you can't offer actual advice based on what the OP asks why bother at all.

To the OP it's good you e started looking into this. What you can do now is go through everything with a fine tooth comb and ascertain if there are any reasons you could have for getting a creditor to rescind your markers/ defaults. For example, we're they caused through the companies own charges or error? If so you can find good templates on this forum and elsewhere letters asking for a 'goodwill gesture' to remove the marks. A phone call to someone sympathetic can often help too.

For those marks you really can't have removed then you will have to wait 6 years from the date it was placed before it drops off your file. If you have a good reason for believing the mark was unfair, or is fair but gives a bad impression for something very minor, you can add a 'notice of correction' to your file. This will delay any credit applications but can help explain to potential creditors any mitigating circumstances you feel they should take into account.

From what I have read on here and elsewhere, creditors don't go on a score, they go on the actual information on your file, and the information you give them. So you can't really 'raise by 100' points. All you can do is try to correct any misinformation, explain what is explainable, and wait. Paying off debts, and keeping all payments up to date in the meantime will stand you in good stead.

Good luck!

The_Boss

Castlehill03 wrote: »

Can you please confirm how long it would take to get my credit score back to good?
Also can anyone tell me how long it takes to increase your credit score by 100 points?

You don't have a credit score (nobody does) so it's impossible to increase it.

The_Boss

CreditCrunchie wrote: »

Being new in this forum it shocks me how many holier than thou people there are! Honestly if you can't offer actual advice based on what the OP asks why bother at all.

I don't see anything wrong with the comments prior to your post - what were you referring to?

willLeeds

CreditCrunchie wrote: »

Being new in this forum it shocks me how many holier than thou people there are! Honestly if you can't offer actual advice based on what the OP asks why bother at all.
!

Rather than being 'holier than thou' my comment said i made the same mistake, i'm 4 years into a 6 years stretch of pain.

CreditCrunchie

Hey Will I think we must have posted at the same time. I wasn't meaning you.

jamesd

Castlehill03 wrote: »

Looking for advise how to improve this as quick as possible. Due to personal circumstances over the last year I fell by the way side and didn't pay my credit cards on time which resulted in 3 defaults against my credit cards...2 have since been settled and the final one I am working to pay off.

There's no really quick way when the defaults are accurate. If there was a mistake you could ask the company that put the default on there to remove it.

It's good that they are settled, though, since that will help to distinguish you as a payer from those who don't pay and looks better. the default that's still not settled will be the biggest hurdle, since it'll continue to add negative-looking things until that's done.

Even so, the defaults will be of significant harm for at least a year, then gradually start to become less significant over time. When it comes to mortgages the most fussy lenders will probably reject an application from you for the whole six years. Others will start to be more understanding earlier, just depends on the policies of the specific lender. For credit cards and personal loans it'll start to have notably less strong negative effect after a couple of years, still varying by lender, though.

Depending on the reason you could ask for a notice of correction to be added to your report. Often treated by lenders as a notice of excuse rather than correction. If the reason was something like unavoidable time in hospital that prevented you from managing your affairs it may help. If a notice of correction is present, automated scoring of applications must not be used, instead a human must look at the application. That means delays for you but that could be better than refusal. If the reason was something like unemployment it would be of less value because it would just show that you didn't have a big enough emergency fund so the risk to the lender is still there.

Making sure that you have direct debits set up for at least minimum payments and giving it time are the sure ways to improve things. They work, not quickly, but it gets there over time.

sirwiggum

OP admitted that the cards weren't paid on time, which led to the defaults.

They aren't disputing that the credit file isn't an accurate reflection of what happened.

I've been there, have had defaults on file. Effectively blacklisted for the 6 years until they were paid off.

OP wanted to know how to improve their 'credit score'. The score, while it is made up, doesn't take salary into account and not what the lenders see, is a consumer facing number. To improve your credit in the eyes of lenders, use your credit cards etc. responsibly. If you've had to close the cards as part of a debt management plan, get a 'bad credit' card such as luma, or use a CashPlus pre-pay card credit builder.

Unfortunately it is a case of sitting out the 6 years. I learnt to live without credit, wasn't easy at times (embarrasing when work needed to send me abroad and I had to admit I couldn't book a hotel or flight on card).

Castlehill03

Thank you for all your advise! 2 of the defaults relate
To credit with an ex partner! It was a joint, however I paid it all off, do you think if I wrote to the lender they may change the statues and remove default??