Credit File Removals After 6 Years

Edmond_2

With reference to this old thread from 2016 https://forums.moneysavingexpert.com/discussion/5475895/when-will-a-default-disappear-from-credit-report (now closed, so I can't update)

I defaulted on a loan in 2012 and have been making collections payments ever since. There was some debate as to whether it would disappear from my credit report 6 years after the default date, as I was still making payments.

Well I'm pleased to say that there is now no trace of this loan on my Equifax credit report at least. It's as if it never existed.

[Deleted User]

Looks like the clever bloke who replied first gave you the right answer....

Obiwan666

That's great news I have 4/5 defaults in Jan to March 2013 which is the only blemish on my credit file. All resulting from a combination of Premature baby, wife nearly died and being made redundant. The last 5 and a bit years has been hard trying to get affordable credit.


Did you see any noticeable uplift in your credit score after the default disappeared?

ndf9876

Obiwan666 wrote: »

Did you see any noticeable uplift in your credit score after the default disappeared?

Mine increased by the power of Grayskull when this happened.



Or more seriously, as has been mentioned numerous times....the score is just a number, it's the data that matters (to lenders). Having defaults removed from your credit file should be an immensely positive thing

[Deleted User]

Obiwan666 wrote: »

That's great news I have 4/5 defaults in Jan to March 2013 which is the only blemish on my credit file. All resulting from a combination of Premature baby, wife nearly died and being made redundant. The last 5 and a bit years has been hard trying to get affordable credit.


Did you see any noticeable uplift in your credit score after the default disappeared?

Are you back working now?

Have you thought about paying off what you morally still owe?

Quentin

!!! wrote: »

Have you thought about paying off what you morally still owe?

Debts never die - nothing to do with "morals"!


If you owe money then you always owe it till its paid


The 6 years just relates to the time allowed to start legal proceedings to get debts paid


Debts aren't wiped out after 6 years!

David555

I had my one and only settled default removed last month and honestly nothing has really changed. I’ve never taken notice of the scores which are “very poor” anyway according to the credit rating agencies. What I do take into account is eligibility soft searches showing me the odds of being accepted for cards/loans which shows my actual borrowing power, to some extent.

The negatives according to the credit agencies are the large amount of applications in a year (5 currently, soon 4) and that my average account age is less than 6 years. I’ve only started using credit since late 2016 so I don’t have a full 6 years of history so maybe that plays a part in it.

What else may play a part are my limits and balances

MBNA £1700 limit £1400 balance (0% promo paying minimum plus £1

HSBC £3000 limit balance £1682 on 0% promo paying min plus £1

Halifax £1700 limit £1500 balance 5% promo paying min plus £1

Aqua card £3100 limit balance £60 always cleared in full

Barclaycard £800 limit £0 balance always cleared in full

Aqua loan £5000 approximately £4500 remaining

Halifax loan £2500 approximately £2250 remaining

I’m a home owner and my total debt is around 30% of my yearly income. I have enough money in savings to clear the lot if I wanted to but I’m on the verge of buying a investment property which was why I took out the loans and 0% balance transfer cards to give me the little boost needed to fund the refurbishment once the property is bought to rent it out sooner rather than later.

Bit disappointing after throwing countless fist pumps in the air celebrating the removal only for nothing to change. I was half expecting to be shown at least 50% chance of acceptance on most cards! My credit club hit list score is a massive 5%. Ah well maybe in a few more years I’ll be fully creditworthy to most high street lenders! If I don’t laugh I’ll only cry.