Just done my six years... what now?

Rodtheplod

Hey all,

Back in September 2011, I defaulted on a Capital One credit card (£10,000). This default has been on by credit report and I've been able to see it every month with Noddle. It had a detrimental effect on my credit score as you'd expect.

I've been paying off bit by bit and as of last month, there was still £2700 left to pay. However, I checked my Noddle account this morning, and the default has disappeared! No sign of it, and my credit score has jumped from being poor (2 out of 5) to being good (4 out of 5).

I'm wondering what's happened to that £2700 - do I still owe that or (wishful thinking) will it be written off? Will Capital One contact me shortly and request that I pay it off all at once, or do I just leave my standing order in place to continue paying this balance off (which I'm happy to do).

The only contact I have with Capital One about this default is that they send me a statement every 6 months or so.

Thanks for any clarification/advice!

[Deleted User]

The debt is still owed and enforceable. It just no longer appears on your credit report.

Rodtheplod

Great - thanks for the quick reply!

Sarastro

Don't be surprised if Capital One sell the debt to a new agency who will register a new default notice on your credit file.

[Deleted User]

It won't attract a new default. Potentially a CCJ if not paid.

cjmillsnun

Sarastro wrote: »

Don't be surprised if Capital One sell the debt to a new agency who will register a new default notice on your credit file.

They absolutely cannot register a new default. Any default registered has to have the original default date, which has now gone part the 6 year period that shows on credit files.

PixelPound

If it is still with capital one and you are paying, I can't see them demanding the full or selling on (they would only get a fraction of the worth). You don't say how much you are paying, if its something like £1pm they may ask for higher monthly amounts.
It is still enforceable as its based on when you last paid as that is after the default date

Samsung_Note2

When a debt is defaulted does the interest freeze...if not then why not look at Balance transfer card and slide the £2700 across and pay no interest.

Must say paying on average of just over £100 a month for 6 years is good going.

Rodtheplod

Thanks again for the advice here! Yes - my payments were lower initially (around £60 per month) but I've actually increased them over the last few years and am now paying £130 per month.

I'm wanting to pay this off sooner rather than later, and I feel like I'm on the home stretch now, so may increase my payments further to £150 once I've got Christmas out of the way.

BTW - Capital One froze the interest when I defaulted back in 2011, so there'd be no benefit in moving the debt to a balance transfer card.

I've not actually used a credit card since 2011 as the Cap One was my only card. However, I'm thinking of applying for a credit card again now that this default has dropped off my file (I've seen on here that it's a good idea to have one, use it, and pay it off each month, etc.).

I've learned a hard lesson, though, and I'll never get back into such a pickle with a credit card!

PixelPound

If you have currently got no credit, it can be harder to get credit. Whether its good to have a credit card and use it depends really on what you want. If in future you are wanting credit, then building a history up by careful management of a card is good. Getting one simply because it's good to have one, is very vague. It's like not been able t drive and buying a car because those who drive say its better to have a car.

Rodtheplod

Thanks Nic_c - my idea is improve my credit-worthiness so that, in the future, if I needed to apply for a loan or some other from of credit, I could do so in reasonable confidence.

As I mentioned, I've not had a credit card since 2011, and so I thought if I got one and managed it carefully, it would work in my favour with potential lenders in the future.