What will happen to my credit rating?

MoneySaver1014

Hi everyone,

New user, first post.

When I was younger I took out a silly few mail order catalogues, credit cards and loans. Missed a few payments, was then unemployed and couldn't afford the repayments. I then got a new job, went into a Debt Management plan and everything was then getting paid back.

Now in 2016 I'm debt free and everything's sorted out been paid and I now have no more debt, just some savings which is good!. The only thing is I've got two creditors still on my account (Check online every month now and I know they stay on for 6 years) one is a catalogue that is due to come off my account in August (Last amount on it was £7.00) and ones a bank overdraft that will come off in December (Last amount on it was £27.00).

Now onto the question, sorry for babbling on...My credit rating obviously dropped a large amount during all off this, and over the last year it's started to month my month pick up by a few points. I'm wondering, how long will it take to shoot back up to a decent level after December?

Thanks in advance!

DCFC79

MoneySaver1014 wrote: »

Hi everyone,

New user, first post.

When I was younger I took out a silly few mail order catalogues, credit cards and loans. Missed a few payments, was then unemployed and couldn't afford the repayments. I then got a new job, went into a Debt Management plan and everything was then getting paid back.

Now in 2016 I'm debt free and everything's sorted out been paid and I now have no more debt, just some savings which is good!. The only thing is I've got two creditors still on my account (Check online every month now and I know they stay on for 6 years) one is a catalogue that is due to come off my account in August (Last amount on it was £7.00) and ones a bank overdraft that will come off in December (Last amount on it was £27.00).

Now onto the question, sorry for babbling on...My credit rating obviously dropped a large amount during all off this, and over the last year it's started to month my month pick up by a few points. I'm wondering, how long will it take to shoot back up to a decent level after December?

Thanks in advance!

Maybe you should have a read of this thread

https://forums.moneysavingexpert.com/discussion/4974939

and come back and tell us if the credit rating means anything.

National_Debtline

Hi there, welcome to MSE.


You are right that the debts will be on your file for 6 years from the date of default and after that they will drop off. If/when you apply for future credit the lender will be assessing your credit history and your overall 'credit worthiness'. The lender will apply their own calculation/assessment to your file to determine whether you qualify for the credit you have applied for.


You can do things such as make sure you are on the electoral role, are not financially associated with anyone you don't wish to be, make sure all of your addresses/ aliases are accurate and all of this will help you overall credit rating. Improving your credit history takes time but unfortunately, no one can say how long. We do have a factsheet that you might find interesting,


Laura
@natdebtline