My credit file - and when it’s safe to apply for credit

edited 30 November -1 at 1:00AM in Credit File & Ratings
11 replies 1K views
Mjfender26Mjfender26 Forumite
215 Posts
100 Posts Second Anniversary Name Dropper
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edited 30 November -1 at 1:00AM in Credit File & Ratings
Hey guys, so I’m now at the very lowest part of my debt, almost all paid off, have around £180 left, my credit file is starting to increase dramatically , but still have those unwanted defaults dating back to 2015 in some cases.

My question is, when will it be safe after next month (when my whole debt is cleared) to apply for credit , I’m looking to get a mortgage, but want a base guideline of when to even think of applying.

Any feedback is massively appreciated.
Debt Free wanna-be in a year.
£15000 debt in October 2017
£0 in October 2018
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Replies

  • [Deleted User][Deleted User] Forumite
    0 Posts
    MoneySaving Newbie
    Please take no notice of the made up score and ratings.

    You can apply for credit whenever you wish - but use some eligibility checkers.

    If you have defaults on your file then i would suggest going to a broker who specialises in adverse credit files
  • Mjfender26Mjfender26 Forumite
    215 Posts
    100 Posts Second Anniversary Name Dropper
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    Ah, so it’s just a ‘RNG’ (Random number generator).

    Will things like my interest, Ammount payable etc etc be heightened due to the bad credit history?
    Debt Free wanna-be in a year.
    £15000 debt in October 2017
    £0 in October 2018
  • [Deleted User][Deleted User] Forumite
    0 Posts
    MoneySaving Newbie
    Yes the numbers the CRA's use are entirely made up.
  • Mjfender26Mjfender26 Forumite
    215 Posts
    100 Posts Second Anniversary Name Dropper
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    Kinda good to know then, so there’s a chance that even with my Credit score being (low compared to most) I have a chance of being accepted anyway?
    Debt Free wanna-be in a year.
    £15000 debt in October 2017
    £0 in October 2018
  • [Deleted User][Deleted User] Forumite
    0 Posts
    MoneySaving Newbie
    Accepted for a mortgage?

    You'll need to see a broker.

    And again, ignore the made up score, regardless of how high or low it may seem
  • sparkey1sparkey1 Forumite
    444 Posts
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    When you apply for a mortgage go to a broker who will be able to check a range of mortgage providers. If you have defaults he will be able to check against the lenders criteria, and remove those lenders that wont lend to you to save wasted applications.

    If the defaults are on cards, dont close the cards until the adverse credit information falls off the end.
  • T-G-CT-G-C Forumite
    591 Posts
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    Mjfender26 wrote: »
    Ah, so it!!!8217;s just a !!!8216;RNG!!!8217; (Random number generator).

    Will things like my interest, Ammount payable etc etc be heightened due to the bad credit history?

    It's not completely random like some people claim, the CRA does use the data held about you to make an approximation of what a lender would score you internally.

    The correct advice regarding any credit score provided by a CRA is that it should not be taken literal and that a lender's own scoring could significantly differ from the illustrative equivalent. The score is not completely pulled out of thin air, as CRAs attempt to emulate a real financial institution to some extent, but it doesn't take into account lending criteria etc. which would take place on a real application for credit.
    Advice provided from this account does not consist of any professional knowledge. For professional debt advice, please contact either National Debtline or StepChange. Advice may consist of personal experience, opinion and/or informational sources.
  • [Deleted User][Deleted User] Forumite
    0 Posts
    MoneySaving Newbie
    The scores are to be 100% ignored.
  • sparkey1sparkey1 Forumite
    444 Posts
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    If your worrined about not making a application until your debt is paid off, do not apply for at least 6 weeks after you make your payments. It can take that long to update your credit reports.
  • Mjfender26Mjfender26 Forumite
    215 Posts
    100 Posts Second Anniversary Name Dropper
    ✭✭
    Okay cool, so even after my very last payment, 6 weeks after my credit file would be considered a lot better ?
    Debt Free wanna-be in a year.
    £15000 debt in October 2017
    £0 in October 2018
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