Default finally gone, now what?

baldster

Hi all - new to the forum, occasional reader and finally signed up.

So, my first question is...

A default, the only default, dropped off my credit report on 16/02/15. I'm interested as to how it now works with my rating/score in general. I'm not expecting to go from zero to hero, but am I instantly more likely to be accepted for basic things I was rejected for in the past? Switching current accounts, phone contracts etc. etc.

Thanks in advance.

modder25

I'm in a similar situation as you are, I had a CCJ fall off my file in November 2014, I still haven't applied for any credit as of yet, partly in fear of rejection. However my bank did say to me last month when I was in there that I was eligible for their low rate loan (something they have never done before) I don't need a loan so haven't applied.


My rating or meaningless score has gone up on all 3 CRAs however so I'm hoping that when or if I do need to apply for something then I will be accepted.


Good Luck.

sparkles12_2

Hi there ,

I am prob a little less experienced than most here but i have gained a lot of personal experience in this area due to trying to clean up my file after Bankruptcy .

There are 3 major Credit reference agencies lenders use to assess your credit worthiness therefore it might be a good idea to check what exactly is on your files at the moment .. Experian , Equifax and call credit are the main ones Lenders report to . Experian in my opinion is the best but its better to check the default has been removed from all 3.

You could also sign up to an online credit reference agency called Noddle , i just became aware of this credit reference agency , you can sign up online , it's free and will show you info submitted from ( experian , equifax and call credit) although in my case 1 of my defaults is listed with experian is not showing with noddle but overall everything else is recorded with them and ive found it helpful and more importantly " free"

Noddle will ask for your banking info when signing up but you won't be charged unless you want to pay for additional services.

Well done on the default finally coming off , i long for this day as im preparing for a mortgage ..

In regards to applying for loans , overdrafts etc I would advise you seek information on what else is held about you , lenders at the moment are very careful on who they lend to and will look for things such as

• Are you on the electoral role ( voters role at your current address)

• Do you have history of paying off other debt / settled accounts with 0 balance
• It would seem having a history of payday loans can negatively effect your ability to access to credit so try and stay away from them
• Are there other defaults or missed payments you might be unaware off
• If you have a high volume of credit searches on your credit file in a period of 6 to 12 months this has a negative effect on your ability to gain credit therefore keep credit applications and credit searches to a minimum
• Many say " your credit score" is what lenders go by , in my experience a score is meaningless as i currently have a 969 score but my bankruptcy and defaults are all the lenders see

If your credit files ( eg : noddle , experian ) reveal a good credit history , evidence of good payments in the past and that you are registered to electoral role at your current address then you shouldn't have any issues gaining credit but before applying for loans or a credit facility it might be an idea to see what information is already held about you with Credit reference agencies , if all's good then you should be fine to apply however if you have no credit history and not registered on the voters role you should do this right away and should consider asking for advice on how to build your credit. I have seen others state a credit builder card can help



Good luck

solentsusie

I agree with Sparkles12 above.

Experian is the agency that holds the most information on me, Noddle is not so good as it holds hardly anything, but that is my personal experience.

Keep a check on all your credit files, about once every six months is fine, you don't need to sign up to any of these monthly payment schemes they try to sell you to "improve your credit rating" they are a waste of money.

Definitely make sure you are on the electoral roll otherwise this can cause you problems if you apply for credit.

Have you done the eligibility checker on here for which credit cards you may be accepted for? Building a positive history is essential as if you have nothing on your file it can be just as difficult as if you have a default as creditors cannot assess whether you are a good or bad risk as they have nothing to assess against.

What is most important is not missing any payments, if you already have a credit card or if you get one set up a direct debit so that at least the minimum is paid each month.

Sounds like you are on the road to recovery if your bank are starting to offer you products.

Do you have a credit card with them? May be a good place to start.

Good luck.

baldster

Thanks to all 3 replies - really helpful.

I tried the eligibility checker on mse for credit cards and my likeliness of acceptance has risen dramatically from around 30% to 80%.

I will check what is now held on file about me. The default was completely my fault but what an agonising lesson I've learnt. Six years of pain for a default that was worth about £100 :doh:

20aday

baldster wrote: »

Thanks to all 3 replies - really helpful.

I tried the eligibility checker on mse for credit cards and my likeliness of acceptance has risen dramatically from around 30% to 80%.

I will check what is now held on file about me. The default was completely my fault but what an agonising lesson I've learnt. Six years of pain for a default that was worth about £100 :doh:

I hear where you are coming from.

I entered into a DMP myself when I was 18. I'd had a few Arrangement to Pay markers on my credit files.

With the help of some wonderful people here on MSE I got them removed last year and around six weeks later (Experian took the longest to update my report) I managed to get a Sainsbury's Bank MasterCard where they'd rejected me in the past.

Time is a great healer and Sparkles12 have posted some very useful information there.

Good luck

andyfromotley

Using the eligibility checker for loans or credit cards on here is a good way of checking your 'real world' credit worthiness. It leaves no footprint on your credit files (that lenders can see anyway).

solentsusie

baldster wrote: »

Thanks to all 3 replies - really helpful.

I tried the eligibility checker on mse for credit cards and my likeliness of acceptance has risen dramatically from around 30% to 80%.

I will check what is now held on file about me. The default was completely my fault but what an agonising lesson I've learnt. Six years of pain for a default that was worth about £100 :doh:

Very painful.


People on here have been defaulted for a lot less. At least now you can look to the future and build a positive credit history.


Good luck.