Satisfied Default advice

Pegasus_1981

Hi,

Looking for some advice around credit scores and debts.

2 years ago I defaulted on 3 credit cards & 1 store card, totaling around 3.5k or debt, since then I have settled all of the accounts on partial payment agreements.

I have had 16 months worth of perfect banking which is acknowledged on equifax. When the first 2 settlements went through my credit score jumped from around 60 to 270, I still have 2 more defaults to show as partially satisfied, so would expect this to jump over 350?

My question is how many more months or years even of perfect banking with all the defaults satisfied would I need to achieve before I can gain a decent level of credit again?

I know a default will vanish after 6 years but wondering how a satisfied default is treated after say 3 years of the defaulted date?

Since these defaults i've had my credit limit with Barclays on my credit card increased from £1600 to £4800, any loan I would apply for I would apply for through my bank to begin with.

Any information or advice is wlecomed.

Bouncybubbles

my husband had a default applied and despite settling it he was unable to even get a bank account until it had dropped off his file. this was around 4 years ago. i would think therefore that you would have to wait for them all to drop off your file before being able to apply for any more credit

sourcrates

Hi,


There's no straightforward answer to this question.

I`ll start by saying defaults are bad news, no matter how old they are.

All lenders will have there own criteria for lending purposes, my bank for instance, only looks at your last 6-12 months credit history when making lending decisions for loans, cards etc.

Other lenders may look further back, or not as far, there is no way to tell without asking the individual bank concerned.

The only concrete thing I can tell you is that the further back in time negative information is, the less effect it will have on potential lending decisions.

spadoosh

Pegasus_1981 wrote: »

Hi,

Looking for some advice around credit scores and debts.

2 years ago I defaulted on 3 credit cards & 1 store card, totaling around 3.5k or debt, since then I have settled all of the accounts on partial payment agreements.

I have had 16 months worth of perfect banking which is acknowledged on equifax. When the first 2 settlements went through my credit score jumped from around 60 to 270, I still have 2 more defaults to show as partially satisfied, so would expect this to jump over 350?

My question is how many more months or years even of perfect banking with all the defaults satisfied would I need to achieve before I can gain a decent level of credit again?

I know a default will vanish after 6 years but wondering how a satisfied default is treated after say 3 years of the defaulted date?

Since these defaults i've had my credit limit with Barclays on my credit card increased from £1600 to £4800, any loan I would apply for I would apply for through my bank to begin with.

Any information or advice is wlecomed.

Your credit score is meaningless. What is important its the detail within your credit report. the banks will use this to give you their own credit scoring (wont be the same as the one you see) and decide upon the risks.

Gaining a decent level of credit again.... Dont know how much you consider decent but some lender will lend to those who have had defaults althought this is normally largely restricted and incredibly expensive with high interest rates.

After having defaults, can i ask what your hurry is to get back in to debt, it appears to have not worked too well for you in the past?

Ultimately you will not know if someone will lend you money untill you ask them. Being declined will likely effect other lenders decision to lend you money, ie if your bank says no, most will say no. Applying to several different banks would be counter productive as each serach shows on your credit report and will likely effect future searches on your report.

KirstyO

Its a very individual thing, dependent on what type of credit you are applying for and who are applying to.


My personal circumstance is I had a default registered in May 2012, final debt not cleared until Jan 15.
Since then I've been accepted for 2 credit cards and a 95% mortgage.


Your score is meaningless as others have said, it is about displaying patterns of behaviour. My low point was around the time the default was registered, in terms of being in arrears and missed payments. Within 8 weeks of the default being registered I was in a my DMP. This didn't automatically make things right but with some lenders it meant that I was back to regular payments that were higher than the minimum. Partly due to a short DMP and partly due to moving jobs often to double my salary over the past 3 years I'm in a much better position, but I'm acutely aware that my default has over 2 years left.


I don't think I'll be applying for any more loans or cards in the next two years, I'll be working at improving everything else so that when the default is eventually gone, i'll look all shiny to any potential lenders.




Please note that my choice to get new credit cards is not the right one for everyone. I had my reasons for getting these and I am strict in imposing my own spending limit on them to ensure they are paid in full each month, in order to repair my credit history as far as possible.

Pegasus_1981

Firstly thank you to everyone who took the time to reply, much appreciated.

My debt was down to losing my job through redundancy, was basically minimum payment given for length of service so literally left me with no income to satisfy none essential bills, so rent and council tax was the main priority. Took much longer than expected to find work based on what I do so was a real struggle, companies allowed me payment breaks but just wasn't enough time for me to turn it around. Not their fault just business so I'm not bitter or blaming others just how the chips landed for me.

I'm not looking to get into debt like I was before but was looking at car finance more than anything but with the way they set that up a personal loan normally is the route to go as you don't have a lump sum to pay at the end and it's not im fixed against the car etc.

All 4 defaults are now showing as satisfied and the "imaginary score" now shows a fair, I'm not looking directly to get anything right away as want to save some money first and wanted at least another 6 months to a year of perfect banking.

I think as others have said and I'm in agreement that going through your own bank who'll judge you on your banking with them is the route to go but ultimately a mortgage in 4 years time one they have all vanished is the target for me.

Many thanks to everyone who replied :j

Pegasus_1981

My income to had also pretty much doubled, my payments have all been on time and I've had no charges or late payments during that time.

Think I just have to keep plodding along and rebuild gradually and limit where I go for credit as like you say multiple rejections will only harm my score.