Poor credit score

Maxweg

Please can anyone offer any help,
We want to improve our credit file score, one is fair the other experian has now changed to poor!
5 yrs ago our we closed our business and were left with a rather large tax bill which has now been repaid, however we wrote to our debtors asking they accept reduced payments which they did .
Do we continue to " plod on" or do we make a settlement offer, will this help our score or make no difference
We sold our house 4 yrs ago ( nothing to do with the debt and all payments made) but we have been advised that it is unlikely we will get a mortgage again by a disinterested mortgage advisor
We are both really upset over this and feeling rather helpless .
We have savings now so do we use it for the debt or keep it for a home deposit

bengalknights

What does it show on your credit records for the adverse postings?

Maxweg

Thanks , sorry but what do you mean when you say what's it showing?. It shows the 3 companies that we set up an arrangement to pay of the debt with, Idem and Cabot so defaulted from Lloyds Bank origanally
The debts were sold to the above company's so I guess is it in our best interests if we, offer a settlement payment, pay one of in full or continue making the monthly arranged payment.

National_Debtline

Hi

The defaulted accounts will drop off your credit report after 6 years of them being put on there whether you settle them or not. The defaults will be having a negative impact on your credit history at the moment but once they drop off they will not affect it at all.

I don’t think it’s right to say you are unlikely to ever get a mortgage. Different mortgage lenders have their own criteria and factors such as the size of your deposit and how much you can afford to pay each month are very important things to consider. If you wait until the defaulted accounts come off your credit file you might find a better ‘whole of market’ mortgage broker might be able to suggest suitable lenders to apply to.

If you need to apply for a mortgage before the defaults drop off then settling, or at least partially settling the accounts is likely to improve your chances, although would need to be balanced with keeping money for your deposit. You could try approaching a different mortgage broker now to see what they think.

James
@natdebtline