Understanding Credit Report

LilPretty

Hi All,

Apologies if this has been asked previously ... but i searched and couldnt find anything.

I am currently looking to purchase my council house and have gotten an offer from the council.

Checked my credit report and I have 1 CCJ and 1 default / deliquent account.

I contacted the company that gave me a ccj and settled, they have advised they will withdraw the default and also send me a letter to take to the court to mark it as settled.

now with the default account - i am a little confused

it says the date of default as 28/05/2009, and updated date as 25/03/2012.

its for about £1300 to Lowel Portfolio

my question is - when will this leave my credit file? from date of default or date of update?

also - i have not had any credit activity in the last 8yrs at least, my credit score is 651 and asides this two accounts - there is nothing more.

How can I rebuild my credit?
Is there a chance of me getting a mortgage?
Yes i am employed and I currently have no credit cards / car finance etc..

Please help.

fermi

They drop off 6 years from the original default date no matter what. Updated date has no impact.

LilPretty

Fermi - THANK you so much!!!

how do i work on improving my credit score please?

solentsusie

The default should drop off your file at the end of May.

Do you have any credit accounts at all on your file? You should perhaps have some utilities showing. Do you have a contract mobile phone?

You could always apply for a credit card and use it to pay your shopping or petrol every month. Pay it off in full so you don't accrue any interest. Set up a direct debit to pay at least the minimum every month and then you will ensure you never miss a payment. This will build a positive on your credit file and show that you are responsible at borrowing.

You also say you are looking at applying for a mortgage. Lots of people on here advise not making credit applications in the six months leading up to your application.

I would also look at using a mortgage broker to find you the best deal for your circumstances when it comes to the mortgage. They will be able to take into consideration your circumstances and apply to the lenders who are most likely to accept your application.

In the meantime make sure all of your bills are paid on time so you do not accrue any late payment markers on your credit files.

Get all files from all three agencies, Experian, Equifax and CallCredit (Noddle is the free online version of CallCredit) and ensure there are no anomalies as not all companies report to all three agencies. You only need to get your statutory credit reports at £2 a time, please don't sign up to the expensive monthly reports, the 'scores' on them mean nothing to lenders who will score you against their own internal lending criteria.

Keep paying everything on time and this will have the most positive impact on your file.

Good luck.

LilPretty

SolentSusie,

Thank you so much for your response.

All of my bills have been pay as you go.

I have changed my utilities to proper bills now - starting this month.

Electric done, now on to the gas next, so hopefully another 2 months and all bills should be on direct debit.

The ccj was settled in dec 2014, and the arrowglobal has agreed to withdraw the default and send me a letter to send to the courts.

Hopefully this will be the end of a stupid/foolish/naive era and the beginning of a life with accountability.

Yes - my mortgage is a right to buy for my council property (freehold) - trying to see if i can get a good deal with nearly 40% deposit.