7 years unpaid credit card! help!

hydee..

PLEASE HELP AND ADVISE!!
i have decided that now is the time to grow up and manage my money a little better.... unfortunately, i buried my head in the sand a little at university 5 years ago....

a quick run down;
i have £1600 student overdraft i never paid off because i decided to travel for a few years (stupid of me i know).
i also took out a £1000 credit card in 2012 which had 0% interest for the first year, and i stupidly have never paid a single payment.

i have done a free credit check on experian, and it says 690... so not quite in the "good". which was expected.

my issues are the rumors that fill my head by (work) people who think they are experts, and i just don't know what to believe!
i am being told that if you don't pay credit cards for 7 years then they get 'erased', is this true?! and if so; why? and will it still affect your credit score?
i have also been told that if i sign up/ pay for the credit files (thorough credit check) then that will lower my score, and also if the "7 year" rule thing doesn't exist, then i will be hounded by third party debt collectors!

i am really worried and i don't want to get myself in a deeper hole.... or end up in prison!! i just want to know i have the chance and opportunity to be able to own my own home one day, and not lower my partners credit core if we buy one together.

would you advise to get a pre agreed credit card and make sure that each month i pay it off to bring my score up?

i just need real advise, and for someone to help me with my first step on the right track.

thank you

[Deleted User]

You don't have a credit score. What you're seeing is a made up number. You have credit history.

There is no 7 year rule. Debts are statute barred if not acknowledged for 6 years.

Sensible use of a credit card will build good credit history.

[Deleted User]

If you haven't paid or acknowledged the card for 6 years or more then it will come off your credit files.

Unless they have applied for a CCJ on the debt in which case it will be on there for a further 6 years.

Ignore all scores and ratings as they are made up - and checking all 3 of your credit files has no affect on your credit history

hydee..

i was hoping you would answer!! I really am new to understanding how all of this works....

what does statue barred mean? that the debt will never disappear, and its something that i will have to face up to...? (stupid question no doubt lol)

what should i do first? do i contact the third party that are now dealing with the debt and agree a payment plan?
or should i apply for a credit card, to improve my credit history before i do anything else?

how will all this affect me getting a mortgage in the future?

also, what is the best compay/website to check my credit history? will this cause me more issues if i look into it further? or is it best to book an appointment with my bank?

thank you

hydee..

how will i know if they have applied for a CCJ? i have moved house, and lived abroad (and this wasn't me trying to avoid payments! just a silly student lol)

Willing2Learn

The debts only become Statute Barred if the lender or DCA has not bought a CCJ against you. If there is a CCJ against you, then the debts are still legally enforceable.

Edit: If you moved house then they may have sent CCJ paperwork to your last known address. That is perfectly legal.

[Deleted User]

Statute Barred: https://debtcamel.co.uk/statute-barred-debt/

If you have any CCJ's against you they will be on your credit files - check all 3.

CallCredit - provided by Noddle
Equifax - provided by Clearscore
Experian - provided by MSE Credit Club

hydee..

is there any way of finding out if the have bought a CCJ against me without contacting them directly? and will i ever be able to bank with the bank this all started with?

[Deleted User]

hydee.. wrote: »

is there any way of finding out if the have bought a CCJ against me without contacting them directly? and will i ever be able to bank with the bank this all started with?

As per my post above

And it depends - they may not accept you as a customer again if they can see the previous history

Willing2Learn

If any CCJs are older than six years, then I *believe* they will not be on your credit file

hydee..

and do i need to pay to check all three?
and this definitely wont lower my credit history/files?