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Credit Score for me and my wife?!?!?!
Vasmalik
Posts: 1 Newbie
Hello,
So i was out of work for 3 months last year which meant we could not pay out debts. The same week got in touch with Step change who put us on payment plan for a very small amount.
March this year i got a new job and a month or so back i managed to partialy pay of 2 debts. I have 1 big debt left and have contacted the bank to pay the whole amount of in 7 months.
Just before i lost my job i had applied for a credit card which was being paid of in big chunks every month.
The mortgage, car payment and utility bills have never had a payment missed. Just the loans and cards were put on a payment plan.
My wife's credit score has gone to "very poor" and mine remains "fair". Why would have this happened?
Any help to improve our credit score would be great as our car needs to be changed by next march and i pretty sure we will not be able to get finance when renewal comes around, evan though we are happy to keep paying the amount we have been paying for nearly 3 years.
So i was out of work for 3 months last year which meant we could not pay out debts. The same week got in touch with Step change who put us on payment plan for a very small amount.
March this year i got a new job and a month or so back i managed to partialy pay of 2 debts. I have 1 big debt left and have contacted the bank to pay the whole amount of in 7 months.
Just before i lost my job i had applied for a credit card which was being paid of in big chunks every month.
The mortgage, car payment and utility bills have never had a payment missed. Just the loans and cards were put on a payment plan.
My wife's credit score has gone to "very poor" and mine remains "fair". Why would have this happened?
Any help to improve our credit score would be great as our car needs to be changed by next march and i pretty sure we will not be able to get finance when renewal comes around, evan though we are happy to keep paying the amount we have been paying for nearly 3 years.
0
Comments
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Don't focus on your score, lenders don't see it, your improving your credit history not your score.
Lenders use your history plus information you provide at application to determine if to lend to you and what apr to offer.0 -
Hi Vasmalik and welcome to MSE.
Because the debts were paid at less than the contractual rate for a period of time this would have had a negative impact on your score. Partial settlements can also have a negative impact as it shows future lenders that you did not pay 100% of the money owed (it can also be positive because is shows that you did reach a settlement with the lender).
Once the last debt is cleared you can start to improve your score (this will take time). You may not be able to do this in time to refinance a vehicle and it may be a good idea to start looking at what other options you have regarding the car (I.e. saving now to clear a balloon payment - if applicable or handing the car back and buying a cheap run around etc.).
Laura
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0
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