Delinquent Account vs Default

Hello,

Just wondering if I could get some advice from people in the know.. apologies if this has been answered elsewhere, but I could't find a post on it using search.

I have recently got a historic CCJ removed from my file that was incorrectly listed. I had never realised that as it was settled within 30 days it should never have appeared. For the last 3 years I had given up hope I would ever have been able to get a mortgage until it expired, despite being financially able to.

I was delighted to get this removed, and have checked my experian file to see it removed, but my score still being 'Very Low'. I'm aware these scores are just made up by the agencies, however they are obviously an indication.

Further investigation shows I have a 'Delinquent account' - a British gas account that I moved from to another supplier over a year ago. I don't recall getting any demands for the outstanding balance and I thought it was settled until a letter that prompted me to pay it immediately. The file says this went to a '6' as unpaid before settling in May last year, making it a 'Delinquent Account'. I'd never heard of this before, only knowing about CCJs and Defaults.

I understand that this will now remain on my account for 6 years after settling, which is 5 years away.

My question is how delinquent accounts are viewed by lenders versus defaults and CCJs. I phoned Experian who wouldn't answer except to say 'its in the same bracket as defaults'. Does this mean I can say goodbye to a mortgage for another 5 years? :(

It does not appear on my equifax file, but does on my call credit, however these have not updated the removal of the CCJ yet so can't see the effect on scores.

Any help would be really appreciated.

Thanks!

Replies

  • ArleenArleen Forumite
    1.2K Posts
    First and foremost scores are meaningless, its the history that matters.

    And with a very late account (which indeed is not that far off a default in view of most people), even though its settled now, will be a big problem for getting, well, any borrowings in nearby future. It may not be impossible to get a mortgage, that is where using a broker comes in handy as they know which lenders are more lenient.
  • National_DebtlineNational_Debtline Organisation Representatives - Private Messages may not be monitored
    8K Posts
    ✭✭✭✭
    Hi Ravenscar,

    Ravenscar wrote: »
    My question is how delinquent accounts are viewed by lenders versus defaults and CCJs. I phoned Experian who wouldn't answer except to say 'its in the same bracket as defaults'. Does this mean I can say goodbye to a mortgage for another 5 years? :(

    It does not appear on my equifax file, but does on my call credit, however these have not updated the removal of the CCJ yet so can't see the effect on scores.


    I am afraid it is a very difficult question to answer as there is no common answer. Your overall credit worthiness is determined by factors such as your age, whether or not you are on the electoral role, financial associations and of course, your financial history.


    A recent negative mark is more likely to have a detrimental affect on getting credit rather than older information. Whilst it may not need to completely drop off in order for you to obtain more credit it may delay things. An independent mortgage broker may be able to offer more information (just be careful of brokers fees and having too many searches on your file). Good luck,


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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