Credit score worry: ready for a mortgage

Steph1482

Hi there

I was bad when credit whilst and university and early 20s and have spent the last 6 years paying off all my debt early. I've been a member of experian for a few years and seen my credit score fluctuate, there is a default account from may 2009 which has made me not want to attempt for a mortgage thus far (only one for a small credit card).

I've savings of circa £12k for a deposit, have a car loan as my only credit and my score is currently 752 (fair) - as it's coming up to six years since the default what is the process of it coming off my account? Will this be a good thing for me as I'm keen to be able to start sorting life out now I have spent so much time saving and paying everything off.

Any advice appreciated!!

Dobbibill

Steph1482 wrote: »

Hi there

I was bad when credit whilst and university and early 20s and have spent the last 6 years paying off all my debt early. I've been a member of experian for a few years and seen my credit score fluctuate, there is a default account from may 2009 which has made me not want to attempt for a mortgage thus far (only one for a small credit card).

I've savings of circa £12k for a deposit, have a car loan as my only credit and my score is currently 752 (fair) - as it's coming up to six years since the default what is the process of it coming off my account? Will this be a good thing for me as I'm keen to be able to start sorting life out now I have spent so much time saving and paying everything off.

Any advice appreciated!!

Stop throwing money away being a member of Experian, it's pointless, the number/score they provide you is their interpretation of you and has no meaning to any lender - if you want to check on your CR then occasionally order your Statutory copy, it's costs £2 and check all 3 CRA's not just Experian.

If you have a default due to come off then what's the rush? It's doubtful it would impact you massively now but if you wait 8 weeks until it is off then you know it's not going to impact you at all.

Is it only your car loan you have on credit? Any mortgage provider would be looking at your overall affordability.

Well done on achieving savings for your deposit, if you need to wait then it will give you time to increase your deposit/savings so not necessarily a bad thing.

Without more information about how much debt you have paid off in the last 6 yrs and how recently it was cleared, you will struggle to get an answer, as you only go into brief details. An independent mortgage advisor would be the best person to speak to.

All the best

DB

Tilly82

With regards to your question about the process of defaults coming off your file, my experience is that they are automatically removed by the credit reference agencies on or around the 6 year anniversary of the default date.

For some reassurance I have just received a mortgage offer from a mainstream lender with a satisfied default from June 2009.

Lenders will like to see some history of you managing credit well since your default and that affordability is not going to be an issue if the rates rise in the future etc. As the other poster suggests, a mortgage broker will be your best bet for advice on your circumstances.

Hope it all goes well for you.

hollyjessicamitchell

I struggled at Uni and was a little immature with my credit line. I took out a ton of store cards/credit cards and overdrafts etc. I managed to pay a lot of them off once I left uni but unfortunately some of them defaulted on me and are still present on my credit file which I have checked recently.
I'm coming up to the 6 year mark now on most of them - one in June, one in August and one in September - and I am just wondering what will happen as the 6 year mark reaches? Do they just vanish off my credit file like they never existed? Do they just get hidden - to be brought back up again if I apply for credit? Or do they hang around my credit file for ever?
I know after 6 years they are meant to 'drop off' but what actually happens and how long does it take?
Thanks in advance to anyone who can help.

Tilly82

hollyjessicamitchell wrote: »

I struggled at Uni and was a little immature with my credit line. I took out a ton of store cards/credit cards and overdrafts etc. I managed to pay a lot of them off once I left uni but unfortunately some of them defaulted on me and are still present on my credit file which I have checked recently.
I'm coming up to the 6 year mark now on most of them - one in June, one in August and one in September - and I am just wondering what will happen as the 6 year mark reaches? Do they just vanish off my credit file like they never existed? Do they just get hidden - to be brought back up again if I apply for credit? Or do they hang around my credit file for ever?
I know after 6 years they are meant to 'drop off' but what actually happens and how long does it take?
Thanks in advance to anyone who can help.

As I mentioned earlier it has been my experience that they do drop off around the 6 year mark. I've had 3 that dropped off a couple of years ago and one due off in June. Experian usually remove them the day after the date. Equifax can take a little longer. They never re - appear again, even if the debt was never settled. Records can only be held for 6 years from when the account was closed or defaulted.

Hoping_for_Herts

I'm also in a similar position and coming up to the 6 year mark and as hoping to get a mortgage in the next couple of years but now worrying myself they could turn into CCJ's at any time! Anyone have any advice on this?

Thank you in advance

The_Boss

Hoping_for_Herts wrote: »

I'm also in a similar position and coming up to the 6 year mark and as hoping to get a mortgage in the next couple of years but now worrying myself they could turn into CCJ's at any time! Anyone have any advice on this?

Thank you in advance

Are they settled defaults?