Advice on Improving Credit File - I'm clueless!

BusyBee1983

Good point, and I genuinely don't know. I have a lump sum guaranteed at the end of the mortgage term that coincides with my retirement that will pay off the capital. The idea of releasing equity is my least favourable as I want to just hammer the debts as much as possible to clear them asap

tone_39

I tried to remortgage whilst on a DMP and whilst having defaults although I was 3 years into this I had a similar problem with a CC Card company defaulting me 1 year after the others even though everything happened at the same time, my mortgage broker helped me challenge this and the default was moved back so hopefully 2018 ill be default free but thought it not a good idea I took the mortgage out after sense checking with a colleague so I stayed with my current lender and fixed my current mortgage which expires 2018 . There are mortgage companies out there that will give you a mortgage even if in default providing you have a number of years possibly 2 or 3 after the default of no more issues. After 3 years I was able to get a loan pay off my DMP by making an offer less than I owed the overall cost of the loan was less than what I owed on the DMP not sure how partial payment will effect me. I was also able to get a loan to do house repairs at 2.9% even though I had the defaults on my file Hers hoping my credit file goes up this year

cjmillsnun

!!! wrote: »

I believe the defaulted accounts you are paying off will drop off 6 years from when you finish paying them off, not from the date the default was issued.

Though someone else here will need to confirm this

That's incorrect. Defaults drop off 6 years from date of default registration whether or not you have paid them off.

Pay a token amount to your older defaults (to avoid a CCJ. You really don't need that), and pay off as much as you can on the ones that are just registering late payments. The 6 year clock resets every month on them.

PixelPound

BusyBee1983 wrote: »

Good point, and I genuinely don't know. I have a lump sum guaranteed at the end of the mortgage term that coincides with my retirement that will pay off the capital. The idea of releasing equity is my least favourable as I want to just hammer the debts as much as possible to clear them asap

Maybe not releasing equity is a good move, since you don't want to put obsticles in the way of any move. I'm assuming the debts in the DMP have interest frozen on them. Is it with a free service like StepChange or National Debt Line or are you using a company that cream off some of the payments for their own costs. On other debts outside the DMP is interest etc occurring (are they just late markers or defaults?).

Any defaults older than 2 years you can have small payments on (you need to maintain payments to avoid further action like CCJ whether they appear on your credit report or fallen off) since in 4 years they should not affect your credit report. Any debts that have late markers on but not defaults need to have at least the contractual minimum to stop going into default. If your husband is going to contribute more then this could be in tackling those debts not yet in default or where defaults are under 2 years and so will still be on your report in 4 years.