Credit file after CCJ expire

dazzaofdagenham

Good morning
my brother was seriously in debt about 4 years ago...bad relationship...etc etc
so he ended up with 4 CCJ and a bunch of defaults...over time he has paid them all off and without any external help...I.e. IVA etc
So me and him was looking at his credit file ( Equifax ) and worked out that by January 2021 all his debts will have ‘fallen off’ his credit file...The 4 x CCJ have all been satisfied and showing as such along with the defaults...

so my question is....in Jan 2021...when his credit file is clean....does he instantly become ‘credit worthy’ again.?....
At the moment he is renting and costing a ££££ and as I am the sole beneficiary of our mothers will, I am tempted to give him the money for a mortgage deposit...
he applied for a mortgage last year and basically got laughed at...( which I understand )...

many thanks for your opinions 

[Deleted User]

No, because credit worthiness isn't a binary concept. It's a sliding scale.

Lenders will look at his history and make a judgement. The absence of negative data is obviously good, but he also need some positive history.

Tell him to assess all three of his files.

dazzaofdagenham

Ok, other that the negative information that I’ve said..
his credit file consists of data for where he lives 
a mobile phone ccontract
and a couple of sub prime credit cards....all with zero balance each month.

other than that I see no negative information.....or is the lack of information a negative in itself.?

[Deleted User]

Does zero balance mean he clears in full?  Or he never uses the cards?

His history sounds s little thin, depending on how far back it goes, but it's a start.

Remind him not to rely on a single CRA file and to use a decent broker when the time for a mortgage comes.

dazzaofdagenham

Clears balance in full every month.....he’s 46 and has become a “cash man”....paying for things in cash rather than any card....shopping..petrol....etc.....he’s careful now..

In relation to CRA files.....they all will drop the negative data at the same time.?

How varied will the data on each CRA be .

thanks for info 

[Deleted User]

That doesn't make sense.  If he uses cash and cards, there will be nothing to clear.

The data will be as varied as it is. It may be identical, it may be very different. Different lenders report to different CRAs and CRAs make mistakes.

He'll only find out by checking.

dazzaofdagenham

He uses cards very rarely....only for things that have to be paid for online....like home shopping delivery....amazon orders....pay TV license...anything that  can be paid for in cash then the does....I.e.petrol....instore shopping...

thanks again 

RelievedSheff

He needs to find a good mortgage broker who has experience with adverse credit history and will place him with the most suitable lender for his situation.

dazzaofdagenham

Ok thanks for your info...when Jan 2021 comes round....he won’t have any adverse credit history on his file ?

His file will be thin ?....he’s renting at the moment ( privately ) and I worked out he’s paying approx £150 more per month than he would if he had the place under a mortgage.

i printed out his credit file...I would try and edit out any personnel info and post here...but that’s beyond me.
as I say he has 2 x sub prime credit cards ....capital one and vanquis
a mobile phone contract and that’s about it.

Thanks again 

maxximus75

I would wait a month or two after this January 2021 date comes before even thinking of applying for mortgage and such.  The reason being is that some CRA's can be a little slow at removing data from credit files and you may also find that whereas one CRA has removed it another hasn't, as yet.

The cards and mobile contract will all be adding to his credit history so just make sure his account use is regulary and paid in full, each month. 

How long have the CC and mobile accounts been open? 

John_

It’s probably better for his chances if he does use a credit card and pays it off in full every month. This shows that when allowed credit he uses it responsibly. That can look better than not having used it at all if you are asking to borrow money.