How long does it take to restore credit - What am I doing wrong?

Kapaxiana

I have two small defaults on my file that are all settled and updated on both experian and equifax. First is from 2009 and the other is from 2013 (missed a payment of £104 because I forgot to register for direct debit and went on holiday) paid straight away when I got the dreaded letter!

So it has been 20 months since the last missed payment. I have a credit card that I use and pay in full every month.

No debt, nothing outstanding, registered to vote etc. but for some reason my credit rating is not improving. What am I doing wrong?

[Deleted User]

Kapaxiana wrote: »

What am I doing wrong?

You're focusing on your score.

Lenders don't see this but will look at your credit history. So if you are now using credit responsibly, you will be viewed more favourably.

wpearson92

I believe defaults stay on your file for 6 years, so your default from 2009 should go soon, however your other default will stay for a while.

Just keep doing what your doing, perhaps apply for a bad credit, credit card to help boost your rating. Worked wonders for me when I was 18. And try not to miss any more payments

DCFC79

You need to keep on doing what you have been doing, just make sure you manage your money better, only spend what you can afford.

Kapaxiana

I am in a really good place now, missed payments taught me a very hard lesson and I was expecting to see some improvement after nearly 2 years of being responsible!

I shall be patient!

PaulW922

You should not have have a default for missing one payment though. Do you mean a late payment marker? That will not be as serious and will have less impact as time moves on.

Kittycat1981

Use a credit card and pay it in full every month when the statement comes in. I see you say you have nothing outstanding and no debt- maybe this is it- if you have no active credit accounts, lenders cannot see your payment history with other creditors.

Fireflyaway

My understanding is a default will stay on your file for 6 years. Seems really harsh though especially if it was an oversight and you are otherwise good with handling stuff.

In my experience late payments - late by 1 months or less- can clear up in around 1 year and some lenders will look for just 6 months 'good behaviour'.

Thrugelmir

Fireflyaway wrote: »

Seems really harsh though especially if it was an oversight

That's what everybody says. You can't tell who is telling the truth. So erring on the side of caution is the openly option from a business point of view.

B0B

Kapaxiana wrote: »

I have two small defaults on my file that are all settled and updated on both experian and equifax. First is from 2009 and the other is from 2013 (missed a payment of £104 because I forgot to register for direct debit and went on holiday) paid straight away when I got the dreaded letter!

So it has been 20 months since the last missed payment. I have a credit card that I use and pay in full every month.

No debt, nothing outstanding, registered to vote etc. but for some reason my credit rating is not improving. What am I doing wrong?

It will have being for more than one missed payment, unless it was a 6 month holiday.


Check your credit file to verify it is a default and not just a nasty letter saying they might default you.