First time buyer with average credit score... help!!

Selkins83

Hello and Happy New Year (not sure wether it’s unacceptable to still say that but hey ho!!)

My wife and I are looking to buy our first house. We both have good/well paid jobs and on all the cra’s Have average scores (on one my wife has above average) however.....

When I was younger (approx 9/10 years ago) mistakes were made (before you say anything my parents have already said I told you so!!) and on my file there are still some “open accounts” one is an in arranged overdraft and one is a payday loan. So that’s what’s pulling my score down.

Since ‘maturing’ (meeting my wife :rotfl: ) I have had great credit, no problem getting a mobile phone and never missed a payment, and getting a credit card and paying off “IN FULL” every month and they keep increasing my limit every 3 months (another good sign I assume) so my score has gradually been going up overtime but not at the speed/rate I had expected so I looked more in depth at my credit file (on all CRA’s) and discovered them.

My question is what am I best to do in order to get them removed. I understand it’s best to pay them off however I’m confused as too which way. From what I can gather by scouring the internet there are a few ways of sorting this but each way has different effects to my file one being settle - apparently this isn’t good as it restarts the Clock as it were on the length of time it stays on my account is this correct?

In addition to this we have found the house of our dreams and know we can afford it as the mortgage calculator gives us an answer that is wayyyyy cheaper than the rent we are currently paying so time is of the essence if any one can assist!!

Thanks in advance!

[Deleted User]

Settled debts always look better than unsettled. Settling a debt doesn't reset any clock if they've defaulted.

Remember to always ignore the pretend credit scores. They're not a guide to your credit worthiness and may lead you to making the wrong decision.

Selkins83

Thanks zx81 so my payday loan defaulted in nov 13 will it be off my account in November this year if I settle it today?

[Deleted User]

Yes. .

[Deleted User]

Fear not.

People get mortgages with “scores” of 300.

If you have an adverse credit history then speak to a broker that specialises in that field.

John_G_Jones

Look at it this way, if you tell a bank that you are now reliable they’ll look at the fact that you still are unwilling or unable to honour your obligations and make up their own mind about if they want to advance you tens or hundreds of thousands of pounds.