Credit rating UK

clivo101

Hi all

4 years ago I sold my house due to financial difficulties and have since struggled in and out of work whilst my wife was studying for her degree. She has since graduated and now has a job as do I and we are looking to get back onto the housing ladder (oh joy)

I have some monthly payments set up paying off some of the bigger creditors I have amassed over the years, but by no means all of them.

My main concern is: Do I need to clear all the debts to fix my credit rating or will I have to wait 6 years even if all my debts are cleared?

Also. I'm somewhat cynical about Experian and their monthly charges to see credit rating as I think I know who it is I owe and how much I need to pay off.

Wondered if I could get some advice on this - any thoughts on whether it is worthwhile signing up with them..?

Krgds



C

Experian_company_representative

Hi clivo101

clivo101 wrote: »

Hi all

4 years ago I sold my house due to financial difficulties and have since struggled in and out of work whilst my wife was studying for her degree. She has since graduated and now has a job as do I and we are looking to get back onto the housing ladder (oh joy)

I have some monthly payments set up paying off some of the bigger creditors I have amassed over the years, but by no means all of them.

My main concern is: Do I need to clear all the debts to fix my credit rating or will I have to wait 6 years even if all my debts are cleared?

Also. I'm somewhat cynical about Experian and their monthly charges to see credit rating as I think I know who it is I owe and how much I need to pay off.

Wondered if I could get some advice on this - any thoughts on whether it is worthwhile signing up with them..?

Krgds
C

A defaulted account will remain on your credit report for six years; it will be automatically removed once six years has passed.

If the monthly membership with Experian wasn't for you, then you are able to obtain a copy of your credit report this can be made by post or online and you can choose to have this including a credit score or not, for a one off fee.

As you've mentioned your plan is to get you and your wife on the property ladder, you may want to obtain a copy of your credit report with each of the credit reference agencies. As not all lenders share details about their customers with all three CRAs (Experian / Equifax and Call-Credit), this information can differ between the each of them.

I hope this helps and I wish you both the best of luck.

Kind Regards
James Jarvis

martinbsp

I recommend signing up with Noddle who provide free credit file information: https://www.noddle.co.uk/

I've been with them since launch. While not as detailed as Experian they may bemore than adequate for what you are looking for.

You are right, paying to see your credit file monthly is pointless if you know who you owe, and all this can be found via Noddle.

Thrugelmir

clivo101 wrote: »

Also. I'm somewhat cynical about Experian and their monthly charges to see credit rating as I think I know who it is I owe and how much I need to pay off.

Then you'll also know who is unlikely to consider you for a mortgage if the debt is not repaid in full. Even full repayment doesn't guarantee anything. As Lenders themselves hold their own lists of customers that have no wish to trade with due to historic issues.

clivo101

So it seems whether I clear the debts or not, the fact that I have, or have had debts remains with me for 6 years and consequently I am unlikely to get a mortgage.

Is this right?


C

solentsusie

martinbsp wrote: »

I recommend signing up with Noddle who provide free credit file information: https://www.noddle.co.uk/

I've been with them since launch. While not as detailed as Experian they may bemore than adequate for what you are looking for.

You are right, paying to see your credit file monthly is pointless if you know who you owe, and all this can be found via Noddle.

I personally would disagree with this. You need to ensure you obtain your credit files from all agencies as companies do not necessarily share your information with them all and each can hold different information.

Noddle for me is a waste of time as it doesn't show anywhere near all of the information held by the other agencies about my accounts. Not all are shown on Noddle.

Also if there is any incorrect data on any of the other accounts this will not show up on Noddle. I would advise just paying for your statutory reports every six months just to keep an eye on them and certainly get all of them before applying for a mortgage.

Good luck.

fermi

The 6 years period for things to remain on your credit report depends on whether they were defaulted or not.

Accounts that had a default recorded disappear off your credit report 6 years from the default date. No-one checking your credit report after that date will see any trace of them.

Accounts that did not have a default but were subsequently satisfied stay for 6 years from the satisfaction date. No-one checking your credit report after that date will see any trace of them.

And yes, the above is true. Defaulted accounts come off sooner in most cases.

As said, even once off your credit report some former lenders of yours may be reluctant to lend, so you may have to be careful who you apply with.

solentsusie

clivo101 wrote: »

So it seems whether I clear the debts or not, the fact that I have, or have had debts remains with me for 6 years and consequently I am unlikely to get a mortgage.

Is this right?


C

Pay the £2 fee to each agency and get your reports if you haven't already. You will then know what outstanding debts you have, you will be able to see when any defaults or CCJ's will fall off your report (they stay on for six years) and then you will be able to make an informed decision about when it will be realistic to apply for a mortgage.

Speaking to a mortgage broker will also help give you an idea of when it will be realistic to consider applying. Some lenders do take on people with defaults, although they are few and far between, and the defaults have to be over a year old. My friend recently applied and was told this by her broker.

Until you have all of your information and all of your ducks in a row you will not be able to realistically assess your position.

Good luck!

fermi

Noddle had all my accounts, so it is somewhat pot luck depending on what particular lenders and products you have, how reflective of your overall situation it is.

But yes, only way to get a full picture is to get a report from each of the 3 CRAs. Preferably the £2 one every so often, so you are not wasting money on unnecessary subscriptions and pointless "scores" or other gimmicks.