Default gone but credit rating has not gone up

Akk223

Hi

In 2010/2011 I fell into some financial difficulty due to losing my job. As a result two of my accounts entered into defaults which at the time I did not know about. One in June 2010 and the other in June 2011.

Since then I have worked hard on my financials and even purchased a house and spent a lot of money from my savings to do the place up and increase the value.

I only found out about these defaults when I was about to approach my mortgage advisor. His advise was that to leave them as they had not chased and they were more than three years old so some lenders would not look at them. In addition, the first one was statute-barred if they even decided to pursue it.

On Friday one of the defaults fell away from the account and the lender did not chase.

In respect to the second one, I did contact the debt recovery agent as I wanted to apply for a short term loan to do further works in the house whilst I was waiting for my bonus to be paid. it seems this one is being passed from pillar to post as the debt recovery agent cannot find the details including the actual loan agreement which I want to see before acknowledging or paying the debt (I suspect that I had PPi on this). As a result the lender has not taken any money as of yet.

The issue I have is

(a) following my default my credit rating on noddle has not gone up...ie stayed the same. Is this normal or should it have gone up because I have one default which falls away next year.

(b) what should I do about the second default as the debt collection agency keeps changing because they cannot find the loan agreement. I suspect this is because the original lender (Egg) are no longer trading and they must have lost the agreement. Should I just pay this so that my account shows as satisfied or keep my position. The limitation period will expire in March next year. The debt is 900.

(c) based on my current position would I be able to obtain a short-term loan for further house improvements. The only job in the house renovation project that I did not do was to replace the Windows because I did not have the money to do so. Everything else in the house including the extension, flooring, ceiling, removal of walls, bathrooms, etc,..is new. In essence by undertaking the works the house valuation has doubled compared to what I purchased it for and I have spent in total 50% of the purchase price to the house up without a loan but from savings. I can say I am really proud of this as it has taken me a long time to raise that money and do the works without a loan to date.

Many thanks for reading

dealer_wins

I would imagine not paying back money you borrowed would make lenders very wary of lending, hence why you you are struggling to get a loan.

Would you lend money to someone who didn't pay you back last time?

DCFC79

Don't worry about the rating not going up as lenders don't see it.

melibu1984

It can take a month or two for your credit rating to change, it might not change automatically just because the default fell off. I recently had an account closed, and my credit rating went up by 14 points - hardly a big change!

As these debts were so long ago, and you managed to get a mortgage since then, I doubt these debts are causing a problem to be honest. You should just apply for a loan and see what happens.

DanStan

Give it a bit of time, I'd say.