Please advise my credit score

Shandy21

Hi, I’m not sure if anyone can help me but I’ll try.

Around 5 years ago I took out a loan to buy a car. A couple of years after that I took out another loan to buy a bike. Due to unforeseen circumstances I was then unable to pay these back (yes it wasn’t the best idea to take out a second loan before paying off the first but I was impatient and young). I buried my head in the sand for a long time before I decided to change things. By this point the loans were handed to financial collectors to which I set up direct debits and have been paying ever since.

However I am now considering mortgages and the future but my credit score is still very very low. Upon receiving my full credit report I have noticed that although these defaults are being slowly settled, they are still showing up as defaulting each month. But I’m paying it!

What can I do to stop this defaulting every month when j am making the payments as agreed?

Many thanks in advance, hopefully someone can advise.

sourcrates

Hi,

You misunderstand the information you are looking at.

Defaults stay on your credit file for 6 years, then they automatically drop off your file, settled or not.

The default entry on your file is there because you broke the terms of the original agreement, it will be dated, six years from that date, the default will be gone, the credit reference agencies just report the status updates every month, they are not new defaults, an account only defaults once.