Making improvements

ClimbingOutOfDebt

I have been in my current address for almost 2 years, due to upcoming election & credit report I have discovered I've not been on the electoral roll. Oops. I've rectified this, just waiting for credit file to update.

Wondering if it'll make much of a difference to credit score?

Also, there a couple of old (4-5yrs) debts on there which I have long since forgotten about/put to the back of my mind. I never receive letters or calls about them.

I want to, and can afford to pay them now (earning more these days) with a reasonable payment arrangement.

Will I be able to request that the creditors put a note on my CF to show I have willingly approached them to pay (I am not being chased), and will this reflect positively on CF?

Thanks
COOD

The_Boss

Yes, lenders will score the applications you make more favourably towards you as there is a key piece of data on your file that identifies you as being you and being at your address.

If you're talking about an Experian or Equifax credit score then of course these 'scores' do not exist in the real world but they will no doubt show as being better than previously.

ClimbingOutOfDebt

Thanks, interesting point about credit scores. I guess I've been sucked in by that number!

Surely though, approaching creditors off my own back will demonstrate that I am actively trying to bring my finances under control. This can only be positive?

Sorry if I sound a little daft, new to all this and want to get things straight as soon as possible.

The_Boss

Sorry missed your second point - if these were 4-5 years ago you may be able to ask them or the debt collectors for a figure to settle the accounts - while they will still show as defaulted, they will show as satisfied/part satisfied which is better than at present.

If you're wanting to apply for a mortgage best to wait for them to drop off your credit files which will be 6 years after the date of default.

ClimbingOutOfDebt

Yes that's the plan eventually, part ownership at least. I (& the creditors) would obviously prefer a "clean" file. Even if they still sit there until 2017 at least they will be settled.

And will feel better as I will, in a sense, be debt free for the first time in about a decade!
Thanks so much for your advice, it's much appreciated

The_Boss

ClimbingOutOfDebt wrote: »

Yes that's the plan eventually, part ownership at least. I (& the creditors) would obviously prefer a "clean" file. Even if they still sit there until 2017 at least they will be settled.

And will feel better as I will, in a sense, be debt free for the first time in about a decade!
Thanks so much for your advice, it's much appreciated

Good to hear that you're keen to pay what you owe and not just abandon the debt

ClimbingOutOfDebt

I've drafted a couple of letters today with what I feel are reasonable offers for full and final payments. Roughly 60% of original default @ 4yrs + old. Fingers crossed they will be accepted and I will be DF by July!