Where to start rebuilding my 'good standing'.

MuddyFunster

I'm in a right pickle -


I've been reading through before posting and I see keeping factual is preferred, I tend to waffle... must... stay... factual.


I'm in my mid-30's I'm happy with my income - I take home £2000 after tax, my Car is paid for by my employer, as is my mobile phone, car insure etc - frankly I have a single DD for £7 for Lovefilm.


I've spent the last 3 years paying for our wedding and fixing other problems to drive down my outgoings


I pay £650-ish a month to my Wife's account to take care of our rent and bills (I can't be trusted) and set aside £200 to cover food bills for our family and £100 for fuel - So as far as disposable income goes - I'm 'laughing' - over a £1000 a month - or will be, my Wife is on maternity leave at the moment so it's needed to cover us for that, but that ends in Jan.


My problem is my credit history is appalling - 2009 I was made redundant from one of the big banks losing my £40k a year job and to top it off 3 weeks later I was hurt in a nasty accident and couldn't work for 10 months - no excuses but during this time I was heavily medicated and just paid what I could and ignored bills I couldn't, and defaulted on the lot, ironically the ones I paid longer are the one that will hurt me the longest! - my defaults are:

Utility Default 28/09/2009 - £540
Credit Card Default 31/09/2009 - £392

Telecoms Default 02/06/2010 - £810
Current Acc Default 31/07/2010 - £2277
Personal Loan Default 31/08/2010 - £5880
Current Acc Default 31/10/2010 - £750

Current Acc Default 16/12/2011 - £390
Telecoms Default 10/10/2013 - £166 (total mystery)


I've worked hard and have got myself back on my feet financially on a day-to-day basis in the last 5 years, by avoiding credit and only spending what I can afford - but just stopped reading letters from debt recovery people - but now my Wife and I want to buy our first house - well in 14 months anyway - - I have a layman's understanding of credit reports etc - ironically I used to work in finance!


With this in mind I just applied for a poor credit, credit card - plan being to max it out each month on shopping food, give the cash equivalent to my wife and clear it each month - but I've been turned down - as the above is pretty much my ONLY credit history aside from a current account and gas bills - I seem to meet the criteria - no defaults in the last 12 months (scraped in by a few days). - but it was rejected.


I suppose my question is this.


I'm going to work out what the default from last year is and pay it - will that help my cause?




I'll also clear the £390 from 2011 once I work out who I owe the money too - will I be free and clear by Oct 2016 - and the big one - what's my chances of getting a mortgage 16 months from now with nearly £9k of defaults (admittedly 5.5 years old) on my file?

McKneff

So what help is it you are wanting from us.

MuddyFunster

Sorry, I managed to hit post before I'd finished.

Voltron

As another Cardiffian, I need to find out where you work if you're taking home £2,000 after tax. This city is a nightmare for wages! Been with my company in a skilled position for nearly 10 years and my basic take home is ~£1,280 while everything around me is getting closer to London pricing.

(Sorry to take thread off point!)

At least your defaults are quite some time ago and should start falling off your record one they hit 6 years. Are they all at least satisfied since? One of the other posters here advised me that a default I had in February 2009 (which has a mark each month for the next year until it was marked as settled) should disappear in February of next year. Hopefully the same will happen with yours.

[Deleted User]

If you do get a credit card, do not 'max it out' under any circumstances.

MuddyFunster

Voltron wrote: »

As another Cardiffian, I need to find out where you work if you're taking home £2,000 after tax. This city is a nightmare for wages! Been with my company in a skilled position for nearly 10 years and my basic take home is ~£1,280 while everything around me is getting closer to London pricing.

(Sorry to take thread off point!)

At least your defaults are quite some time ago and should start falling off your record one they hit 6 years. Are they all at least satisfied since? One of the other posters here advised me that a default I had in February 2009 (which has a mark each month for the next year until it was marked as settled) should disappear in February of next year. Hopefully the same will happen with yours.

Big payers are the Banks, but I wouldn't recommend it


I work in IT Sales / Consultancy - made a 'deal' with my Boss, started here 2 years ago on similar money to what you're on now and built up the business with new clients / improved turn-over and profits - my salary is based on how well the business is doing as whole - he's an exceptional boss though, I had a similar agreement with another place in Bridgend (different industry) before here - doubled their business, brought in 60 new clients a month and after 2 years they decided they didn't need me anymore.


Anyway, on point - no, none are satisfied - I plan to pay / satisfy the smaller ones, but the big ones (which are owed to my former employer as 'staff loans') I can't afford to pay in one go, they'd accept monthly payments - but I believe this would mean they'd stay on my file until these payments are complete? I have an unwritten agreement from them that whilst I'll always owe the money, they'll never take it further than a default notice.


Does satisfying default automatically improve your score?

[Deleted User]

MuddyFunster wrote: »

Does satisfying default automatically improve your score?

It improves the way in which lenders will view you.

Anything it does to your score is neither here nor there, as no one sees it but you.

MuddyFunster

Deleted_User wrote: »

It improves the way in which lenders will view you.

Anything it does to your score is neither here nor there, as no one sees it but you.

Thanks, that's what I was after.


I understand the concept of 'scores' and who sees what, etc it's just easier to say "score" I forgot my learned audience!

[Deleted User]

You are forgiven.