Experian Credit File Defaults Question

chriz1000

One of my companies went into administration in 2012. This left me with a lot of debt which I couldn't even afford a Debt Repayment Program for.

I have 8 defaults on the account, 3 of which froze in 2012 and don’t show any further activity and 5 which show 8 for every month since then. For all 8 I'm making a token payment of £2 per month and they have agreed to freeze the debt.

My question is will the 5 which are still showing ‘8’ for every month and a reduced debt amount ever fall off my credit file? I thought all defaults fell off your credit file after 6 years, but it appears they are just being applied in the same manner as a late payment. Also if they stop after 6 years aren't they going to be visible for a further 6 years since they are still showing them every month?

Experian also need to seriously update their credit score algorithm, according to them my credit score is 999 and that’s with showing 8 defaults :P

Hazzinho

Defaults drop off 6 years from the default date. The credit scores mean nothing and are a waste of money, only you see it. Always get the £2 reports from Experian and Equifax and the free one from Noddle (Callcredit). Just ensure the information is accurate, lenders have their own lending criteria and consider salary which CRA's don't.

chriz1000

ok cool, so even though they are showing '8' every month with the reduced amount owed they will completely disappear after 6 years and not just stop appearing? The main reason i'm trying to find out is I want to know how long it will be before any company will consider letting me re-mortgage?

Hazzinho

The accounts will totally dissapear from your file 6 years from default date whether paid off or not. Each month shows default as you breached the original agreement so displays the 8 each month. While you have defaults it may cause issues with lenders.