What are my chances...?

dilemma10

Hi there,

Really sorry, I probably already know the answer but am looking for some advice. I now live with my boyfriend (since January of this year) and he owns his flat which is worth approx £145k. He put down a significant deposit of £25k for this, 2 years ago, so should have some equity. He earns £70k a year and I earn £45k, so we both have a great income. The problem is the flat is only one bedroom and is quite small for us and ideally we would like to move in a couple of years time.

However, I am really worried about my state of affairs, I have the following defaults - 2 of which have stupidly accumulated in the past year from total disorganisation. I am paying the unsettled ones off so that they are all satisfied in the next two months.

I do not have any credit cards but I do have a student overdraft which I am trying to get down. My Noddle rating says 1/5 and is giving me sleepless nights.

What would be our options? My b/f is very financially savvy and would not be impressed (although years ago he also had defaults). I do not think he would settle for a higher interest APR as a result of this if we were to get a joint mortgage (and who could blame him!).

How bad is this???

I forgot to say, stupidly I do have savings - £4k (so I should pay them all off in one go really) and I would not have an issue getting a deposit together myself if that helped in terms of taking on a larger property, i.e. I could probably pull together the £10k myself in the next year plus he would have some too.

Date of Default: 21/07/2011, Arrow, £434
Date of Default: 24/02/2014, Orange, £373
Date of Default: 08/10/2014, Lowell, £544 (Paying-off)
Date of Default: 22/10/2010, Lowell, £78 (Satisfied)
Date of Default: 05/03/2012, HSBC, £615 (Satisfied)

Jhoney_2

Hi,

You are having sleepless nights and yet you have 4k in the bank. Pay off the debt, what are you waiting for?

You will still have over 2.5k in the bank and the debt starts to become a historic element of your financial situation sooner than later.

In 2 years time - which is your plan, such previous small debt amounts, better recent financial choices and a good deposit should be okay to get a mortgage, but that's just my opinion.

dilemma10

Jhoney wrote: »

Hi,

You are having sleepless nights and yet you have 4k in the bank. Pay off the debt, what are you waiting for?

You will still have over 2.5k in the bank and the debt starts to become a historic element of your financial situation sooner than later.

In 2 years time - which is your plan, such previous small debt amounts, better recent financial choices and a good deposit should be okay to get a mortgage, but that's just my opinion.

Thanks so much - well stupidly enough they have moved over to other debt companies and it's all becoming a tangled web of who I owe money to! I have just been passed details for the £434 amount so I can clear that and I am trying to work out how I pay the EE outstanding amount. I am just so disorganised it's really irresponsible.

heytoki

i would recommend you to get a credit card too and start using it. Spend and pay the balance off every month. Thats the way to build up your credit score

Paully232000

heytoki wrote: »

i would recommend you to get a credit card too and start using it. Spend and pay the balance off every month. Thats the way to build up your credit score

I am not sure that they would be in a position to get a credit card, one due to the defaults, and two, the disorganisation of the finances at present.

I would reiterate what other person said, find out exactly who you owe money to, get on the phone to the debt companies and pay the debts now.

Then you can sleep better, and sort out your organisation skills (or lack of), also with help from here if you want.

dilemma10

Paully232000 wrote: »

I am not sure that they would be in a position to get a credit card, one due to the defaults, and two, the disorganisation of the finances at present.

I would reiterate what other person said, find out exactly who you owe money to, get on the phone to the debt companies and pay the debts now.

Then you can sleep better, and sort out your organisation skills (or lack of), also with help from here if you want.

Thank you - yes I cannot get one, which is a good thing if you ask me!

Are there any other things I can do to build up my credit history?

Will satisfied defaults increase the file to 2/5 perhaps?

Jhoney_2

heytoki wrote: »

i would recommend you to get a credit card too and start using it. Spend and pay the balance off every month. Thats the way to build up your credit score

I wouldn't suggest that as OP has said she is a bit disorganised at the moment and is still trying to get to grips with what is already going on.

Paully232000

dilemma10 wrote: »

Thank you - yes I cannot get one, which is a good thing if you ask me!

Are there any other things I can do to build up my credit history?

Will satisfied defaults increase the file to 2/5 perhaps?

Firstly forget about the number that noddle give you, it means nothing to any credit provider, they dont see it, and make their own judgement on whether you will be given credit or not.

To build up your credit history so that you become more likely to be accepted for other credit in the future, is to pay off your defaults and then just give it time, as the further away in the past the settled default is the better.
Give it a few months, get yourself organised and you could try to apply for a credit builder card like Aqua, but only on the pre-requisite that you spend on it on normal things that you would buy anyway and set up a DD the minute you get it to pay off the full amount each month. Then given time of using it sensibly your credit history will improve.

dilemma10

Paully232000 wrote: »

Firstly forget about the number that noddle give you, it means nothing to any credit provider, they dont see it, and make their own judgement on whether you will be given credit or not.

To build up your credit history so that you become more likely to be accepted for other credit in the future, is to pay off your defaults and then just give it time, as the further away in the past the settled default is the better.
Give it a few months, get yourself organised and you could try to apply for a credit builder card like Aqua, but only on the pre-requisite that you spend on it on normal things that you would buy anyway and set up a DD the minute you get it to pay off the full amount each month. Then given time of using it sensibly your credit history will improve.

Thank you so much.

I am just so worried that I will drag our joint chances of a bigger place down the drain!

Paully232000

two other things.

I would tell your other half about this (if you are going for a joint mortgage), as he is going to find out anyway.
I would employ the services of a mortgage broker who can help, and see if a mortgage is possible. We used one and best £299 spent.

dilemma10

Paully232000 wrote: »

two other things.

I would tell your other half about this (if you are going for a joint mortgage), as he is going to find out anyway.
I would employ the services of a mortgage broker who can help, and see if a mortgage is possible. We used one and best £299 spent.

Thank you for this - yes I should do really, but he's not the type to take it very well given that he was already concerned about being linked financially when we moved in due to an ex girlfriend's previous money issues.

See mine are pretty ridiculous as affordability is not the issue!!!

Grrrr....