Defaults on credit report

AngryDog

Just been thinking a little more on this. If I paid these off this summer, by way of Partial Settlement, that would put me in a position to be able to rebuild my credit file once they'd been marked as PS on my file, correct? That being the case, if I want credit / mortgage in two years, when all but one of my defaults will have dropped off, my credit record will be healthier because of the fact I've settled the debts, rather than waiting for them to drop off my report and to start rebuilding it after that time.

Is that correct?

Thanks - sorry for the not 100% grasping it.

Tixy

Yes, in general the longer your visible positive credit history at the time you apply for a mortgage the better.

So if you want to apply for a mortgage in 2years then ideally you would want to start building up a positive credit history now or as soon as you can, from something like a subprime credit card.

Do you have any open credit accounts that haven't defaulted and that you are up to date with payments?

There is a chance it may even be possible to get a subprime card now even with your defaults not being fully paid.

AngryDog

I currently have a BarclayCard with a £2080 limit (they increase it every year) that is in credit and not defaulted on.

Tixy

Do you use that card? do you carry a balance or repay in full?

Once all the defaulted accounts drop off then that account should be useful in demonstrating a positive credit history, so no need to worry about any extra cards etc.

AngryDog

Tixy wrote: »

Do you use that card? do you carry a balance or repay in full?

Once all the defaulted accounts drop off then that account should be useful in demonstrating a positive credit history, so no need to worry about any extra cards etc.

I carry a balance and pay more than the minimum each month.

AngryDog

I guess the best thing to do is to carry as little a balance as possible?