Advice needed on my credit score

Bella3110

Hi

I have recently joined as I can see that the forums are really helpful and supportive and I need some advice.

I have a credit score of 316, I have 4 accounts in default and a total of £6296 debt, I am in the process of working through the debts and paying them all off. There are around 3 more years before I will have some defaults removed, and I am hoping to get a mortgage once I have cleared my debt.

My question is how soon does your credit file re build once you start paying debts? Also, would I even be accepted for a mortgage even if the defaults have been settled? I am 27 and I earn around £38,000 per year. After many years of burying my head in the sand, I've realised I need to take full control of my finances.

Thanks in advance!

Candyapple

Firstly there is no such thing as a credit score, it is a marketing ploy. Only your credit history matters.

The 4 defaults are what is going to hold you back from getting a mortgage. I know some lenders will allow 1 default, but 4? Doubtful, even if they are all settled. You'd probably be best off waiting until they all drop off and just save like mad when your debts are clear so that way when you do apply for a mortgage you are in the best position to be offered the best rates as well.

Your credit history will probably improve 3 years+ after the defaults as the age of them will gradually wear off and you may be approved for sub-prime cards such as Aqua, Vanquis etc. as long as you have kept up any other repayments in the meantime and not had any further late payments, defaults etc.

Superscrooge

Defaults that have been settled are always better. So you are definitely doing the right thing working through your debts and trying to get your finances in order.

Regarding a mortgage application. I think you will struggle for several years until your credit history improves.

Imagine you were the mortgage provider. If you knew that someone had borrowed money on four occasions and failed to pay the money back. Would you lend them money??

The advice from Candyapple is good. Try and clear your debts. Apply for a sub-prime card. Always pay the balance in full and you will gradually improve your credit history which will make it more likely you will be accepted for a mortgage.