Rebuilding credit while still in default

TheDebtinator

Hello all!

I am currently in default of two debts. All of my other ones are either settled or satisfied, but will still show on my file until October / November of this year.

Is it possible to:

1) rebuild credit while having defaults on file
2) rebuild credit while having active defaults on file (ie not settled or satisfied)

I have just been accepted for a credit rebuild credit card which I will be setting up to pay the full balance each month so as not to get charged interest, but I am not sure if this will make q positive difference to my ability to get credit while I still have active defaults on my file.

Thanks for reading and I appreciate your advice in advance. :money:

fruitisbad

As far as scores and numbers are concerned, don't pay much notice to them, but you can start building a positive history seeing as you do have a credit facility.

It depends what you want to be credit worthy for, do you want to buy a house, need large balance credit cards?

When the defaults do drop off any creditors will just see the positive repayments and management of your credit.

TheDebtinator

My Fianc!e and I want to buy a house in a few years, so the sooner I can get a good history back together the better.

My question is that for every good payment that I make, I still have two creditors that are not receiving money due to the fact I am in dispute due to lack of CCA.

takman

TheDebtinator wrote: »

My Fianc!e and I want to buy a house in a few years, so the sooner I can get a good history back together the better.

My question is that for every good payment that I make, I still have two creditors that are not receiving money due to the fact I am in dispute due to lack of CCA.

Why don't you just pay off the money you owe?. If you borrowed the money they you have to pay it back. Even if there is no CCA available you must of either borrowed the money or not.

TheDebtinator

That is somewhat stating the obvious, and I actually have another thread about paying money back, however a long standing member who has offered a lot of advice has suggested otherwise due to the creditor being in default by not providing me with the information requested, so one is stuck between a rock and a hard place.

It also doesnt help that one of my creditors has screwed me over on a default by defaulting me twice on the same loan.

m4rc

It's up to you if you pay or not or choose to challenge them or not, just be aware of they feel he debt is legitimate they can take the case to court for a CCJ. You can pay and settle within 28 days to have it cancelled or you can defend yourself so it is set-aside, but you just need to be aware it does happen sometimes, even at the last minute (weeks to go until the debt 'drops off') and if you are trying to have a clean file if you then couldn't get it removed a CCJ will sit there for 6 more years and is more damaging than a default.

It doesn't bother me if you don't want to pay, I don't have any feelings of guilt or sorrow for the people trying to collect your debts, if you can get away with not paying that's great but I'd hate for you to be surprised by a CCJ when you thought it was all gone and ended.

Good luck

TheDebtinator

Thanks m4rc, though as I understand it, as they do not have a valid CCA they cannot get a CCJ raised against me.

Thomas_The_Tank_Top

TheDebtinator wrote: »

..I have just been accepted for a credit rebuild credit card which I will be setting up to pay the full balance each month so as not to get charged interest...

What CC is this then?

TheDebtinator

Thomas_The_Tank_Top wrote: »

What CC is this then?

Aqua. High APR but recommended on the MSE main site to rebuild.

Thrugelmir

Don't wish to repay debts you owe and you would would like a mortgage. Think about it. Is that repairing your credit history. Or simply reaffirming to financial institutions the sort of potential borrower you could be if they lent you money. There's plenty of people who do settle their debts and therefore would be considered a far better risk. .

takman

TheDebtinator wrote: »

That is somewhat stating the obvious, and I actually have another thread about paying money back, however a long standing member who has offered a lot of advice has suggested otherwise due to the creditor being in default by not providing me with the information requested, so one is stuck between a rock and a hard place.

It also doesnt help that one of my creditors has screwed me over on a default by defaulting me twice on the same loan.

But if you had paid the debt on time then there wouldn't be any problems. You may be able to get away with not paying the debt but at the end of the day you borrowed the money so you have to pay it back as agreed. Why do you need a copy of the CCA or any other information?. I'm sure if you offered to pay it off they would happily accept the money .

But the point I'm trying to make is: You can't really expect to have a good credit history if your actively trying to avoid paying debts!. Lol