Peace of mind

Legacy_user

Hello

Am emloyed full time, have a debit card and an outstanding debt of £319. The account is delinquent after the 24 month contract's mobile number was passed on to another customer therefore leading to it being shown as defaulted.

I couldn't pay the sum of £24.99 from January to August of this year - which was supposed to be end of the contract. Its been passed around debt collection agencies left, right and centre after refusing to pay until I have plucked up some courage to begin paying off the debt in lump sums all this week, £40, £20, £50 and £10 to get rid of the debt as soon as possible and to improve my way of life, financially.

The debt is for EE and once the final payment is completely wrote off, will this have a nice, round and high figure on my credit report immediately or will it take a few years, like six years from the date the debt was written off altogether.

sourcrates

Hi,

The default will stay on your credit file for six full years, from the default date,
regardless of weather you pay it off or not.

System

sourcrates wrote: »

Hi,

The default will stay on your credit file for six full years, from the default date,
regardless of weather you pay it off or not.

Some would say that is a ridiculously long time, but that's how the system works sadly. Then after six years, my credit score increases?

MrsTinks

himynameisaaron wrote: »

Some would say that is a ridiculously long time, but that's how the system works sadly. Then after six years, my credit score increases?

First - please forget about "scores"... they're reasonably meaningless.

Potential creditors will look at your history and things like unsettled defaults obviously look worse than settled defaults. The older they are the better.

The default will stop showing completely after 6 years as already mentioned. However if you want to appear more "credit worthy" then start by getting a sub prime credit card and spend a little every month BUT PAY IT OFF!!! That part is really important!

Assuming you're trying to become attractive for something like a mortgage or renting a flat etc here then they want to see you being able to manage your debts. Having them but not missing payments or defaulting.

But seriously stop taking the credit score as anything much more than a sales gimmick... your creditors will have their own criteria for whether they will give you credit and at what rates.

System

MrsTinks wrote: »

First - please forget about "scores"... they're reasonably meaningless.

Potential creditors will look at your history and things like unsettled defaults obviously look worse than settled defaults. The older they are the better.

The default will stop showing completely after 6 years as already mentioned. However if you want to appear more "credit worthy" then start by getting a sub prime credit card and spend a little every month BUT PAY IT OFF!!! That part is really important!

Assuming you're trying to become attractive for something like a mortgage or renting a flat etc here then they want to see you being able to manage your debts. Having them but not missing payments or defaulting.

But seriously stop taking the credit score as anything much more than a sales gimmick... your creditors will have their own criteria for whether they will give you credit and at what rates.

Are credit cards like aqua designed to help get a better credit rating and do you use Experian to analyse your rating?

Sorry, am confused as so much information is being thrown at me hence the questions.

I really need someone to go through my credit report with me as being autistic, its not easy at all.

Thanks.

MrsTinks

himynameisaaron wrote: »

Are credit cards like aqua designed to help get a better credit rating and do you use Experian to analyse your rating?

Sorry, am confused as so much information is being thrown at me hence the questions.

I really need someone to go through my credit report with me as being autistic, its not easy at all.

Thanks.

Ok - let's start with the easiest one:

Why do you want your "score" to improve?

1- is aqua designed to help you improve your "score"?
A- No - they're designed to make the provider money. Can you use them to improve your credit history? Yes, if you use them regularly, pay them off and so show you are responsible with a line of credit.

2- who to use? Experian?
A- There are 3 credit reference agencies (CRA's) - Experian, Equifax and Callcredit. You may find information on some or all of them. There is no rule for who your creditors will report to or check. If you are looking at mortgages etc make sure you check all 3 of these (it can be done free with free trials which you HAVE to remember to cancel or you can request copies of your files for I think it's £2 each per time)

Take your time with it - nothing will be fixed over night

System

MrsTinks wrote: »

Ok - let's start with the easiest one:

Why do you want your "score" to improve?

1- is aqua designed to help you improve your "score"?
A- No - they're designed to make the provider money. Can you use them to improve your credit history? Yes, if you use them regularly, pay them off and so show you are responsible with a line of credit.

2- who to use? Experian?
A- There are 3 credit reference agencies (CRA's) - Experian, Equifax and Callcredit. You may find information on some or all of them. There is no rule for who your creditors will report to or check. If you are looking at mortgages etc make sure you check all 3 of these (it can be done free with free trials which you HAVE to remember to cancel or you can request copies of your files for I think it's £2 each per time)

Take your time with it - nothing will be fixed over night

Hi,

I want my "score" to improve for a higher chance of accptance through things like going for a flat, I'm 24 and need to leave home sometime soon, mobile phone contracts and choosing a car when passing my driving test. I'm just trying to fix my life even though as you say nothing will change overnight.

Thanks for answering the other two questions, I've used the Equifax free trial as of starting it today, most of the things on there are 'Settled' and 'Up to Date'. The only one that isn't is this EE one.

My credit "score" is 304, I presume which isn't an accurate representation.