My F&F demands

Tixy

mattymoo2014 wrote: »

I thought about trying to pay off my CC in full and leaving it open and trying to service the debt in full each month. That way my credit score / rating might improve and generally I'd look better?

Does the credit card have a default against it? if so it is unlikely they'll let you spend on it again and it wouldn't help your credit history because the default will still show.

Really what you need is a clean credit card to do this. If you have an existing credit card you didn't default on then you could do it with that, or if not then you may need to try applying for a subprime credit after you have repaid your debts.

mattymoo2014

Yes, unfortunately this card was defaulted in September 2013.

I have 6 credit accounts and all but 2 were defaulted. On the 2 that were not, I can't really understand why they didn't issue a default notice (at least I didn't get it). I've ordered my credit file and was wondering if I find a default whether that's lawful because they didn't notify me?

With regard to subprime credit, does it look back on your credit report to have that anyway? I mean, is it better to wait for "good" credit. (Perhaps people on here will say there is no "good" credit –!I'd be inclined to agree!)

Tixy

Creditors do not have to issue a formal notice to default in all cases.
Some types of credit do not require them (e.g. phone contracts/service contracts and bank overdrafts).

Anyone searching your credit file won't know that your card is from a subprime lender as they see an anonymised version of your report which does not show lenders names.

In terms of starting to build up a positive credit history I would say better to get a subprime card if you can soonish, rather than wait several years to try to get a main stream credit card.

mattymoo2014

Are you able to recommend anyone?

And can I just check something? Because the defaults are on my credit file, it makes no difference whether I scrape together a less-than-total F&F settlement figure or scrape even more a satisfied settlement? My credit rating will be adversely impacted either way? No difference?

Tixy

I couldn't say it makes no difference. But I think it would make little difference as to what you could get accepted for in terms of unsecured credit.

When you ask for a recommendation - do you mean for a subprime card? if so this link may help (but wait until the debts show on your credit files as paid/partially paid)
http://www.moneysavingexpert.com/credit-cards/bad-credit-credit-cards

mattymoo2014

I was thinking of a mortgage –!would companies look at defaults more kindly if I can manage to settle in full?

Thanks for that link. You're saying I should end present debts before applying for more? (That would only be to rebuild credit rating.)

Tixy

mattymoo2014 wrote: »

I was thinking of a mortgage –!would companies look at defaults more kindly if I can manage to settle in full?

May be worth asking this on the mortgages section of the forum. There are a number of mortgage brokers who regularly post on there and may be better placed to answer with recent real world experience.

mattymoo2014 wrote: »

Thanks for that link. You're saying I should end present debts before applying for more? (That would only be to rebuild credit rating.)

Yes, you are more likely to be accepted for a subprime card if you don't have outstanding defaulted debts.