Recoveries effect on credit score

JSAK

Hi

I have recently had an account with Halifax sent to recoveries due to not being able to afford the overdraft fees.

I also have 2 loan accounts with them and am struggling with repayments. As the default will already be on my account from the previous account would it actually affect my credit file that badly if these other loan accounts also went to recoveries?

My score is already quite poor and I am wondering how much worse these accounts going to recoveries will actually make it and would it affect my score anymore long term?

Any help or advice appreciated.

Richey_

The score is totally irrelevant, it’s a made up number used as a marketing gimmick to make you pay £14.99 a month to the credit referencing agency. Only you and them see it, loan companies do not use this number. They make their lending decisions from your credit history over the last six years.

Have they defaulted this account too?
To be honest repeated defaults will harm your ability to take out future credit until they drop off after six years, however the older the accounts the less impact they have especially if your more recent credit useage is good.

They may do you a favour defaulting all of them as that’s when the six years starts from the date of the default before it drops off. You can then negotiate with collections a payment plan. It may be worth opening a basic bank account with a bank not in the Lloyds group as they can take money from any account you have with them to put towards any debt you owe them.

Best thing to do is to go over the the Debt Free Wannabe board, complete a SOA and ask for assistance with your finances. They may be able to help you save monies in areas to use for debt repayment. It may be worth speaking to Stepchange or Christians Against Poverty also for advice around debt and managing it. Everything is sortable

JSAK

Thanks for taking the time with that. Massively appreciate it, I will take a look.