Can I improve my credit rating while I have defaults?

ssazz

Hi,

Sorry if this is the wrong place to post this, I am new here.

Essentially - I built up a few defaults over the past 2 years - I had a spending problem and some mental health issues, paired with leaving my job unexpectedly at one point and it all kind of spiralled out of control. I did the classic head in the sand thing for quite a while, which I regret of course, but the important thing in my mind now is that I’ve taken control of it, am paying back toward the accounts and it should be paid off in a further 2-3 years, hopefully sooner. It’s a huge anxiety off my mind to know I’ve started to fix things but I know it will be a long road..

I’m aware defaults will be on my file for 6 years regardless, but I was wondering if it is possible for me to take steps toward improving my credit rating before this period is over.

I’m not really sure where to start cos I can’t even get a mobile phone contract at the moment. I still have a credit card acc open so I thought about using that but I don’t really want to have credit available to myself really just in case I overspend. I could ask for the limit to be reduced I suppose and use it in that way?

Short of this, is there anything I can or should be doing?

[Deleted User]

Use the card and clear in full.

Don't reduce the limit unless you absolutely have to.

Willing2Learn

ssazz wrote: »

Essentially - I built up a few defaults over the past 2 years - I had a spending problem and some mental health issues, paired with leaving my job unexpectedly at one point and it all kind of spiralled out of control. I did the classic head in the sand thing for quite a while, which I regret of course, but the important thing in my mind now is that I’ve taken control of it, am paying back toward the accounts and it should be paid off in a further 2-3 years, hopefully sooner. It’s a huge anxiety off my mind to know I’ve started to fix things but I know it will be a long road..

I’m aware defaults will be on my file for 6 years regardless, but I was wondering if it is possible for me to take steps toward improving my credit rating before this period is over.

I’m not really sure where to start cos I can’t even get a mobile phone contract at the moment. I still have a credit card acc open so I thought about using that but I don’t really want to have credit available to myself really just in case I overspend. I could ask for the limit to be reduced I suppose and use it in that way?

Using your credit card to buy groceries that is already in your monthly budget, and then paying the balance in full each month will help your history look a bit better. Your credit file won't really look good to any lenders until the defaults are removed.