Closed debt account closed creating a negative

Losing_it

Without giving all the details and history I finally, after many years, settled a bank loan debt through an agreed payment plan directly with the bank concerned.

This was settled and accounts closed back in Sept/Oct time last year.

I have left it until now to take a look at my credit report, as much for curiosity as much as anything, to see how I might be seen. I was also considering replacing my car, around 50% deposit and possibly the outstanding on finance of around 2-3k.

However... having signed up with Experian I am borderline v.poor-poor, with two negatives. One negative is small and easily rectified, but the big one is the aforementioned agreed payment plan to the bank all showing as '6', baring the last entry showing as a nice green tick. The account is marked as having been settled/closed however.

So... the question is, do I now just have to bide time and wait for this to all clear during the next 6yrs.

Is there anything I could do to improve my rating/score and help my chances of obtaining credit again.

The reasons for the debt were for a number of reasons, some of which were beyond my control and one or two due to my own mistakes. But... having come out the other side of around 30k's worth, I am never going down that road again. Things were good before and I was very responsible where credit was concerned and I know this is and will be the case again, if only I can improve things.

I do have a mail order account which is well run and also had contract phones for last 6yrs and have recently upgraded again without issue, though I imagine a credit check is not carried out as it's just a continuation.

I have read here how the rating and score is somewhat irrelevant, but it must have mean something, else it wouldn't exist and just be pointless surely.

Any help or advice would be appreciated, I just want to move on with things and get my life back in order.

molerat

Of course the score is not irrelevant. With a low score the agencies can sell you products to help you improve it

I am afraid it is a case of biding your time until those nasties disappear. Maybe a sub prime credit card paid off in full each month would give another green tick each month.

Thrugelmir

Losing_it wrote: »

So... the question is, do I now just have to bide time and wait for this to all clear during the next 6yrs.

.

In essence yes. You struggled to repay a debt. Now you wish to borrow money again. Lenders will wish to an improvement in the management of your personal financial affairs.

[Deleted User]

Losing_it wrote: »

.
I have read here how the rating and score is somewhat irrelevant, but it must have mean something, else it wouldn't exist and just be pointless surely.

People have used the same argument about Ant and Dec, but I'm still not convinced.

Losing_it

As I expected, thankyou all.

I have been looking into credit cards for people with a bad credit rating that can help improve things, but it seems these are only accepted after a year or so.

I've also been reading about utilization, where by you only use and stick to around 10% of your available credit. This to me makes some sense at it tells credit companies you are not reliant on credit to live and you are responsible in how you manage your finances.

sarahb7538

When was the account opened and when did you first enter the payment plan. The old ICO guidance given to creditors (prior to its recent update) states when a default should normally be given.

http://www.experian.co.uk/www/pages/downloads/compliance/guidance_on_defaults.pdf

" Accounts should normally be filed as being in default where those
payments due have not been received for six months "

This is only guidance but it is very useful, lots of things covered about responsible debtors not being penalised by repaying , against debtors who do not acknowledge and never repay the debt etc. It details when accounts should be defaulted. You could study it see what applies to you and there is no harm writing to your creditor to complain that it should have been defaulted ( it they agree- depending on how far back it goes, it may get taken of your credit file).

Its worth asking for the sake of a letter, it they decline you can ask the FOS to see what they think of your situation at the time, against the guidance that was in place.

Good luck x