Old debts & credit file

ClimbingOutOfDebt

Hi, this is my first post so I apologise in advance as I'm sure there are many many posts similar to this one that've been answered in the past!

To cut a long story short, in my late teens/early 20s I was a single mum on a very low income. I had countless payday loans, switched bank accounts when I couldn't pay unauthorised overdrafts and was too scared/ashamed/skint to deal with it, so I ignored it and hoped it would disappear. Of course it didn't.
As of 18 months ago I'm employed full time and living with family. I have paid off -

Wonga - £800 with a payment arrangement

Santander U.O - £380 with a payment arrangement

Halifax U.O - £670 U.O with payment arrangement

I have also repaid a (disputed) overpayment of benefits from 2010.


It might not seem like much, but it feel like a weight is being lifted. I am desperately keen to improve my credit file and score.

I have checked my credit file using equifax. I have 2 questions related to my findings.

1. The Halifax debt mentioned above shows as settled. However the same debt is there again under first credit ltd and is showing up as defaulted. Can I get this removed and how? Is it instant?

2. There is a debt from PRA group for £139. I believe this is a 4 yr old unpaid QQ loan under a different name. Someone advised me to not pay it as it will disappear in two years, but if I pay 6 years starts again. Is the true?
I could comfortably pay it off now, but do I contact QQ or PRA? Would it be wise to hold on for the two years? And if I paid would my credit score improve straight away (these two points are the only unsettled things)?

I am going to be looking into shared ownership on a property. I am obviously concerned about the affect of my past mistakes. Over the last 18 months I've made headway in paying off debts, have a phone contract which is paid on time every month (same for car insurance but not sure if this counts), I have never gone into the red on my current account, it has no overdraft. I have a joint account with a family member out of which rent & bills are paid. The sky package and (separate) phone and broadband accounts are in my name and have never defaulted. My credit score is still 'poor'. Will removing the above issues boost it?

Sorry for all the questions and if I sound totally clueless!! Any answers and/or advice would be so gratefully received! Thanks
COOD

fermi

1. Did you pay it off via 1st Credit? Does the original record a default as well with the same date? A 2nd entry for the same debt when sold on and marked as such is OK, but details of the default must be the same.

2. It will come off your file in 2 years, but not true that paying it will make it stay on any longer.

ClimbingOutOfDebt

Thanks for replying

1. It was eventually paid off with a payment arrangement with Halifax - the CAB helped to arrange this. All details, dates, amounts etc match up except Halifax says settled and 1st credit says defaulted.

2. So it will be there for only two more years whether I pay it or not?

fermi

1. If it's the same debt then should be a default on both, or no default on either. Are you sure no default is marked on the Halifax one? Usually would be a default, but a settled one if sold on.

If the 1st Credit one is there wrong or wrongly you will need to dispute that entry.

2. Correct.

sourcrates

Hi,
(1) 1st credit have a habit of doing this, at some point Halifax must of sold the debt to them, if they are reporting on your credit file, you can challenge this via the credit reference agency, online.

(2) paid or unpaid, it will be gone after 6 years total.

ClimbingOutOfDebt

1. Who should I contact first? Equifax, first credit it Halifax? I'm starting to panic that it's not been paid somehow?!?!

2. I'd rather pay it off, will this be reflected on CF or not make much difference?

Sorry I'm utterly clueless!

fermi

1. I would dispute via Equifax and contact Halifax to start off with to see where it stands, but in the end you may have to write to 1stC.

2. Would show as satisfied for the 2 years. Minor improvement only, but would remove any possibility of it going to court.

sourcrates

ClimbingOutOfDebt wrote: »

1. Who should I contact first? Equifax, first credit it Halifax? I'm starting to panic that it's not been paid somehow?!?!

2. I'd rather pay it off, will this be reflected on CF or not make much difference?

Sorry I'm utterly clueless!

If you've paid it off, then you've paid it off, do you have any proof ?
Did you pay the full amount outstanding ?

Could be the debt was passed back to Halifax when you contacted them to pay it off.
To dispute the entry, log on to your credit file, there will be a button to click to dispute a particular entry, click on it, and follow the prompts.

ClimbingOutOfDebt

Thanks Both. Yes, I can prove its been paid if that becomes necessary.

Just feeling a bit disheartened that it took genuine hard work and commitment to pay it off (along with the others) but it's still there looming over my life like a storm cloud.

I guess I (naively) thought I'd open up my credit report and see lots of big green ticks now that I've (I think) really improved my money management.