disputed item on credit search

Clarinet53

Hello all,


I have recently tried to apply for a mortgage and got turned down with the advice to check my credit score for myself and my husband.


On checking this my husband has an excellent credit score and I have a good credit score. When I queried the mortgage refusal with Experian it was due to a default.


I had a DMP which I paid off nearly 4 years ago. I cleared the last loan I had in January so this was a complete shock to me. I don't recognise the company who allege that I owe £128.


I have asked Experian to lodge a dispute on the credit file. I f I were to attempt to gain a mortgage with that on there would I stand a chance or would I be better to leave well alone and go into a rental as where I am living currently I am just waiting for an exchange date.

Tixy

Does the defaulted account show as settled? Or is the £128 the balance that it shows is still outstanding?

It is possible to get a mortgage with settled defaults but much less likely with outstanding defaults. That said it all depends on the rest of your finances as well e.g. a person with a large deposit will likely be less affected by old problems on their credit history.

In terms of dealing with the entry - is it in the name of a debt collector? You may find now you have obtained a copy of your credit file that they write to you. If they try to chase for this debt then send a prove it letter so you can find out what debt it related to and then hopefully you have proof that this debt was settled which you can send to them. Letter when you know nothing about about the debt - AKA "Prove it" letter

Did you just get a copy of your experian file so far? if you are planning on applying for a mortgage it is worth checking your files with all 3 agencies, just in case there are any errors or other problems on either of the others.