Would very much appreciate some financial advice

Owly

Hi, I wonder if anyone might be able to give me some advice.
Four years ago I very stupidly defaulted on a payday loan for £250. I haven't had any credit / debt since and have been using a basic bank account. I don't pay any bills in my name for reasons I won't go into and I haven't made any applications for any credit, not even a current account in the past 3 years.
Now I had a look at my experian file and due to the default on my account my credit score is 'very poor'. I wish to improve this but I'm not sure what the best option is :
1. Should I wait 2 more years for the default to drop off from my credit file and not apply for any credit in the meantime?
2. Is there any way to improve my credit with this default still on? Experian credit matches suggested an aqua credit card but I am afraid of applying for any credit in case I get rejected then it will impact badly on my score.

I have no desire to ever get in debt again but my main reason now for wanting to improve my credit is because I am fed up of my basic bank account and visa electron card and would love a normal current account - I work full time and have a lot of savings, I've been with my bank for 8 years yet when I last applied for a current account 3 years ago, none of this mattered and I was rejected due to the default on my account.

Could anyone please advise me what the best option would be? Thank you so much for taking the time to read my lengthy post.

Ben8282

A single 4 year old default for £250 should not really be having such a devastating effect.
I note that you say you have been with your current bank for 8 years and yet only have a basic bank account. As the opening of this basic account pre-dates the default by 4 years, I am wondering why you have only a basic bank account especially as you claim to have a 'lot' of savings (presumably deposited with the bank which is refusing you a normal current account) and as you work full time your salary is presumably paid into this basic bank account.
You say that you don't pay bills in your own name. Why? You can hardly be hiding from debt collectors over a 4-year old £250 debt. Not paying bills is hardly helping your credit score either is it?
If you were to apply for a card and get rejected, such a rejection will not impact badly on your credit score.