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Credit File and Mortgages
NatalieanneDFW
Posts: 50 Forumite
Hi Everyone,
About 5 years ago, I started taking out a few store accounts and credit cards and gradually built up a lot of debt which got worse during Uni. After building up a 3.5K overdraft, I landed myself in approx 8k debt. I've managed to pay off about 3k of this through a DMP so I'm now down to 5k owed. I have now managed to save 3500 in the bank and it seems daft to have savings when I owe money.
Looking at my credit file. The following accounts show default in red. All other accounts show green.
Moorcroft debt - 2342
Shop Direct - 433
Capital One - 857
CCJ 2015 - 527 paid and registered as satisfied
I have now graduated from uni and I am working. I have two children and living in rented accommodation. My absolute dream is to own my own small home and a relative has offered to help with a deposit. I have been looking at the help to buy scheme for new My only sticking point is my credit history which is trashed. Looking at some of the other posts, it sounds like my credit won't be repaired even if I pay these debts with the money I have saved. Is this the case and will I have to wait 3-4 years until it clears itself? Can anyone offer me any advice on what to do? Is it worth paying them off with cash or just paying through the DMP until 2021 when it's due to finish?
Many thanks in advance!
About 5 years ago, I started taking out a few store accounts and credit cards and gradually built up a lot of debt which got worse during Uni. After building up a 3.5K overdraft, I landed myself in approx 8k debt. I've managed to pay off about 3k of this through a DMP so I'm now down to 5k owed. I have now managed to save 3500 in the bank and it seems daft to have savings when I owe money.
Looking at my credit file. The following accounts show default in red. All other accounts show green.
Moorcroft debt - 2342
Shop Direct - 433
Capital One - 857
CCJ 2015 - 527 paid and registered as satisfied
I have now graduated from uni and I am working. I have two children and living in rented accommodation. My absolute dream is to own my own small home and a relative has offered to help with a deposit. I have been looking at the help to buy scheme for new My only sticking point is my credit history which is trashed. Looking at some of the other posts, it sounds like my credit won't be repaired even if I pay these debts with the money I have saved. Is this the case and will I have to wait 3-4 years until it clears itself? Can anyone offer me any advice on what to do? Is it worth paying them off with cash or just paying through the DMP until 2021 when it's due to finish?
Many thanks in advance!
0
Comments
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Your credit files will obviously look a lot better if you settle the defaults.
Lenders are looking for people who settle debts, rather than spin them out.0 -
Agree with ZX81. Pay them off. Who knows. You may find if you phone them up they will do you a deal where you end up paying less to clear it in a one off payment.2.88 kWp System, SE Facing, 30 Degree Pitch, 12 x 240W Conergy Panels, Samil Solar River Inverter, Havant, Hampshire. Installed July 2012, acquired by me on purchase of house in August 20170
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