improving credit rating difficulty

amyramsdale

As it stands, i have a poor credit rating.


Some years ago i got into a mess financially as a student, and ended up with several defaults, I was in a debt management plan but recently in summer 2015 came out of this plan, i paid off a number of debts in full and deal with my creditors direct now paying more off each month on the remaining.


Technically ive got about 1500 left over each month which we are saving for my partner to go for a mortgage in late 2016, I could pay off all my debts fairly quickly had i not be saving hard for a deposit for a house and once this mortgage is secured i would use remaining money to clear debts.


Question is on noddle, all my debts show as default and do not mention that a payment is being made, however the outstanding balance is reducing. Is this right or should this show as payment received or something.


All my bank accounts, utilities mobile phone is all upto date, im just wondering why im struggling to get credit, is there anything i can do.


cheers and look forward to hearing your reply.

Monkey2801

Have you applied to clearscore, experian, noodle etc? They tell you why your credit score is low and how to improve it.

debtdawg

You have a poor rating as you have defaults and balances outstanding, you're not going to be able to get credit easily until the defaults drop off (6 years from default date).

Thrugelmir

amyramsdale wrote: »

im just wondering why im struggling to get credit, is there anything i can do.

Use your savings to clear your existing debts. Why would lenders advance you more money when you haven't repaid what you already owe.

I was in a debt management plan

Little point in applying to these companies for further credit. An issue you may well be encountering.

DCFC79

Monkey2801 wrote: »

Have you applied to clearscore, experian, noodle etc? They tell you why your credit score is low and how to improve it.

It's not the score to be improved but the history which is what lenders see.

David_White

amyramsdale wrote: »

I could pay off all my debts fairly quickly had i not be saving hard for a deposit for a house and once this mortgage is secured i would use remaining money to clear debts.

This is massively counter productive based on what you've said.

If you're in an arrangement to pay with creditors your number one priority should be repaying these debts.

Superscrooge

amyramsdale wrote: »

As it stands, i have a poor credit rating.

I could pay off all my debts fairly quickly had i not be saving hard for a deposit for a house and once this mortgage is secured i would use remaining money to clear debts.

im just wondering why im struggling to get credit, is there anything i can do.

cheers and look forward to hearing your reply.

It appears obvious why you can't get credit. You need to pay off your debts before saving for a deposit.

Why should anyone lend you money when you didn't pay them back last time, and have outstanding debts that you could pay off, but have decided not too?. .

m4rc

From your first post it looks like you are saying your partner will get the mortgage and not you. I say this as you wrote 'for my partner to go for a mortgage' rather than 'with my partner'. Is this correct? If so and you will be living there I'm not sure it's that simple, I may be wrong but I was under the impression that as lenders are aware of the things people will do to get round finance issues (like one partner not declare themselves on the mortgage because of debt problems) they need to know who will live in the house and you would be credit checked. Probably wrong, just something I thought I'd read on here.

If that is the case it's unlikely you will get a mortgage easily until your debts are sorted and even then the defaults will need to be a good few years old, a lot of lenders wouldn't lend with any defaults showing no matter how old.

If they won't check you then I guess it should be ok and I understand why you are doing what you are doing.

If however you are applying together or you would be searched anyway then sorry to say but getting a mortgage anytime soon is going to be a challenge. Get your debts cleared ASAP, that will make your history look a lot better and in a few years once everything is cleared and the defaults have dropped from your file you should find it easy to get a mortgage from a high street lender.