Default on file, can I still build a good score?

Imnotarobot_2

Recently went to buy a new car and was refused finance so went to my local Halifax and enquired about a loan, the lady in the bank did an eligibility check and said I'm not eligible. So I signed up to a credit score check site and the reason I'm being refused is due to a default from a loan when I was young and stupid and I'd forgotten/didn't understand what it all meant.

Would there be any way I could build up a credit score (using credit cards wisely is an idea already suggested) high enough to get a car on finance or a bank loan or am I screwed til the default is off file?

The_Boss

You don't have a credit score as generic scores don't exist.

Your credit profile will get better as time goes by though assuming you keep to the terms and conditions of your card and keep rebuilding. What was the date of default out of interest?

Imnotarobot_2

Haha a friend keeps telling me that 'credit scores' don't exist as you're judged on lots of things by the actual lenders but to keep things simple I just call it a score, although I see you're quite against the term 'credit score' going by your signature lol

Yeah if I get a card I'd obviously have to stick to the agreement and I'm thinking do things like, buy something for a tenner and pay it off at the end of the month and do this once a month.

How long would it take for my profile to improve enough to get finance or a loan with the default on file, are we talking years or months?

Here is some info on the loan

Account type: Unsecured Loan
Account status: Satisfied
Date last updated: 07/01/2015
Account opened: 18/06/2009
Account opening balance:
Regular payment amount:
Repayment frequency: Monthly
Default date: 12/04/2013
Original default balance:
Date default satisfied: 07/01/2015
Settlement date: 07/01/2015

DCFC79

If it were me I'd save up, spend wisely.

pappa_golf

Default date: 12/04/2013


removed from record 12/04/2019


or 12/04/2018 if you live in scootland

Pegasus_1981

You can still build a good score, I have "partial satisfied" defaults on my credit file from over 3 years ago, I've managed to quadruple my score in 4 months after using Equifax to track the debts down and now sit in the middle of the fair category on Equifax.

Since then I've had limits increased on cards and have been accepted for a new card so its certainly possible, you just need to put your hand in your pocket and cough up some settlements.

Candyapple

If you are looking to buy a car on finance you will need to wait until the default drops off your file which as in post #5 states, will be in April 2019. Until then, any finance deal you may be offered, the APR will be extortionate.

Your choices are:
1. Save - because you are screwed until the default comes off your file.

2. In the meantime try and get a subprime credit card and use it buy something small and pay it off at the end of the month. Do this for at least a year and then move onto a more mainstream card if you are accepted for one. Rinse and repeat. By doing this, when 2019 rolls round lenders will be able to see you have built up a history of good payments.

So in answer to you question, it will take years to repair the damage.

chelseablue

Yes it will take a few years to go from your record. Very good advice above regarding cards.


Time does go quick though, my boyfriend has a default from 2011. At the time 6 years seems ages away but next year it'll be gone

[Deleted User]

Barbara_Edmond wrote: »

Thank you will my credit rating start to go up now it’s been paid, I’ve applied for a credit card too try and help improve it

reported as spam/post building - again.

The_Boss

Pegasus_1981 wrote: »

You can still build a good score, I have "partial satisfied" defaults on my credit file from over 3 years ago, I've managed to quadruple my score in 4 months after using Equifax to track the debts down and now sit in the middle of the fair category on Equifax.

Which just underlines why the 'scores' are a load of made up claptrap

Pegasus_1981

What do you mean by this? surely making good on a debt and clearing it shows some kind of financial management improvement and a score increase should reflect this.

I cleared my debt in total and have made on time regular payments for the last three years for all of my other accounts, sure they'll stay on my file for a few more years but the only long term credit i have is now on one card and i am paying this off well a head of schedule in respect to minimum amounts.

Minimum payment is around £17 a month and i'm paying £500.00, my other credit card i'm doing as others do, small purchases and paying off in full before interest kicks in to continue to boost my score.

The ironic thing is my main credit card supplier trebled my limit way before I settled my debts so sure scores don't always reflect the situation but a score should increase when you settle debts.